Gold & Silver Rally Continues, moving to $1,300 & $18 per oz

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This Week’s Headlines:

Gold
Silver
U.S. Mint releasing 2017 Burnished 1oz Gold Eagles
ANA members are receiving their election ballots
Recommended Investment Commitment and Diversification

GOLD

Gold started the year at $1,150 per ounce and reached a high of $1,297 on April 17, a $147 increase. Then, on May 17, Gold reached $1,224 per ounce, a 50% correction from the high. This is a classic rally, correction and reversal. Now Gold is moving higher, closing on Friday at $1,268 per ounce, up $14.50 for the week and $118 (10.27%) for the year.

Last week, the Federal Reserve released their April minutes, showing the likelihood of an interest rate increase in June. Surprisingly, this caused Gold to test the $1,250 support level. Also, last Wednesday Moody’s announced a downgraded credit rating for China, from A1 to A3, on worries of slower economic growth and growing debt. Some long-term investors in Asia saw this as an opportunity to add to their Gold and Silver holdings, helping support both metals at current low prices.

I look for Gold to move above the next short-term resistance level of $1,275 per ounce in early June. Then, some possible consolidation between $1,250 and $1,275, if the Federal Reserve raises interest rates. I do believe Gold will reach the important $1,300 resistance level before the end of June.

Today: Gold is trading between $1,260 and $1,270 per ounce on normal volume. Depending on news from the Federal Reserve or North Korea, this could be a consolidation week after Gold’s recent gains.

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SILVER

Last week, Silver stayed above the key $17 per ounce resistance/support level all five trading days. Silver closed on Friday at $17.32 per ounce, up $0.53 for the week and $1.38 since the beginning of the year. On May 9, Silver tested the $16 per ounce long-term support level and held, reaching a low of $16.08. Like Gold, it appears that Silver also had a classic correction from its April 17 high of $18.66 per ounce, followed by a strong rally.

As we approach June, I remember how explosive Silver behaved in June of 2016. Silver traded at $15.92 per ounce on June 1, 2016, and by July 5, 2016, had reached a high of $21.23. That’s a $5.31 increase (33%) in just a little over a month.

The Gold/Silver ratio is at 73.20-to-1.

Today: Silver is holding well above the key $17 per ounce support level, trading between $17.20 and $17.50 per ounce today. Silver is showing better price stability than Gold as demand picks up with the currently high Gold/Silver ratio.

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U.S. Mint releasing 2017 Burnished 1oz Gold Eagles

On Thursday, June 1, the U.S. Mint will offer the 2017 1oz Burnished Gold Eagles for sale. We will be purchasing hundreds of these coins and will immediately submit them to PCGS and NGC, hoping to get a fair percentage of First Strike and Early Release Perfect 70 coins. We should learn the U.S. Mint’s issue price later this week.

If you wish to purchase a 2017 1oz Burnished Gold Eagle, certified as Perfect 70 from PCGS or NGC, please contact us. We will put you on our preferred client list and give you our Exclusive Lowest Price guarantee.

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ANA members are receiving their election ballots

If you are a member of the American Numismatic Association (ANA), you should have received your 2017 election ballot. As a past president of the ANA (2007-09) I know many of the candidates and would like to provide my recommendations.

President:
Gary Adkins

Vice President:
Don Kagin

Board of Governors:
Adam Crum
Brian Hendelson
Steven Ellsworth
John Highfill
Paul Montgomery

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 30% of investment capital

Diversification:  Gold 50%, Silver 40%, Platinum & Palladium 10%

Diversification includes 50% in long term investment quality rare coins and 50% short term bullion products.

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If you want to be updated on what is happening in the Gold, Silver, and Rare Coin markets any weekday, our company offers a daily blog Monday through Friday at www.stupplerblog.com

All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Stuppler & Company’s knowledge at this time.  Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein.  Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability.  All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions.

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