Gold & Silver prices correct after recent rally

Links to recent informative articles on precious metals and rare coins:

SHARPS PIXLEY Sees A 252% Increase in Physical Gold Demand

Plunging Dollar Reveals Market’s Anxiety About Trumponomics

The World’s $100 Trillion Question: Why Is Inflation So Low?

Gold Surges to Seven-Week High on Weaker Dollar, Political Risks

China’s Gold Imports Seen Jumping 50% as Haven Demand Booms

This Week’s Headlines:

Gold
What happened that caused Gold to selloff last week?
Silver
Long Beach Coin Expo show update
Recommended Investment Commitment and Diversification

GOLD

Last Friday, Gold closed at $1,271 per ounce, down $9 for the week. Last week was an exciting week with Gold making a new 2017 high of $1,298, and making its second attempt at breaking the key $1,300 per ounce resistance level. This week we should see some consolidation with Gold base building, while trading in the $1,270 to $1,290 per ounce level. The next attempt for Gold to break above the $1,300 level will be its third, and should be successful.

Today: Gold stayed in a tight $7 trading range today, between $1,264 and $1,271 per ounce. After last week’s volatility, it would be good to see Gold establish a new base, hopefully over $1,270 per ounce.

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What happened that caused Gold to selloff last week?

Last Thursday, Ex-FBI Director James Comey testified before a Senate committee. Just before his testimony, 30,000 CME August Gold 100-ounce contracts were sold into the market. That’s 3 million ounces of Gold, worth about $4 billion. Clearly, someone felt that Comey’s testimony would be positive for the President of the United States. Thursday’s pre-testimony Gold sale, combined with Friday’s disappointing election news in Great Britain, caused the U.S. Dollar to rally and Gold to selloff.

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SILVER

Last week Silver reached a high of $17.75 per ounce on Tuesday, but closed the week at $17.22, down $0.30 for the week. The same reasons for the Gold selloff are what also caused Silver’s decline. However, Silver’s continued weakness has forced many professional precious metal traders to act aggressively. As Gold was approaching $1,300, many precious metal traders noticed that Silver didn’t have enough demand to break above $17.75 on its way to breaking $18. So, they short sold Silver on Tuesday, and many covered those short sales on Friday, making $0.50 per ounce.

Silver needs to move back above the $17.50 level very soon, or it could test the $17 per ounce support level.

The Gold/Silver ratio is at 73.80-to-1.

Today: Silver tested the important $17 per ounce resistance level, reaching a low of $16.90 per ounce. For the Silver rally to continue, Silver needs to move back above the $17 per ounce level ASAP.

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Long Beach Coin Expo show update

Last week, David and I attended the June 2017 Coin Expo convention in Long Beach, California. The Long Beach Coin Expo is a major rare coin convention and we saw active trading on the bourse trading floor. We weren’t able to pick up many of the undervalued $20 Gold Saints or Morgan Dollars, as there was a serious lack of investment quality Gold and Silver rare coins.

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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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