Gold Above $1,200 Per Ounce and on a Bullish Track

Current Rare Coin Listings Updated

Current listings for Morgan Dollars
https://www.mintstategold.com/silver/us-mint/morgan-silver-dollar.html

Current listings for Peace Dollars
https://www.mintstategold.com/silver/us-mint/peace-silver-dollar.html

Current listings for $20 Gold Saints
https://www.mintstategold.com/gold/us-mint-1/saint-gaudens.html

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

Gold Prices Surge as Fed Chair Powell’s Remarks Lean Dovish

Silver Is ’The Best Buy’ Right Now - Wells Fargo

A Gold Bloc for Iran, Russia, and Turkey...Oh My!

Does Gold Go on Vacation?

This Week’s Headlines:

Gold
Silver
Long Beach Coin Expo starts on September 6th
Recommended investment commitment and diversification

GOLD

On April 18th, 2018, Gold was trading at $1,353 per ounce and the U.S. Dollar Index was at 89.48. Then, fears of a trade war among the U.S., China, and Europe hit the market place. By August 15th, the Gold price dropped to $1,160 per ounce (down 14.5%) while the U.S. Dollar Index climbed to 96.86, an increase of 9.9% during the same time. Clearly the value of the U.S. Dollar had pretty much dictated the direction of Gold prices. During those four months, many of the world’s largest central banks that were holding U.S. Dollars as part of their countries’ reserves decided to exchange those overvalued U.S. Dollars for Gold, buying over 100 tons.

Last Friday, Gold rallied $19 per ounce, closing at $1,206.70, well above the key $1,200 per ounce support/resistance level. Why did Gold rally $19 on Friday? It was a combination of two things: (1) a sell-off in the U.S. Dollar Index, and (2) dovish comments from Federal Reserve chairman Jerome Powell. On Friday, the U.S. Dollar Index briefly dropped below 95, the lowest level reached in two weeks. Plus, Chairman Powell may be under pressure from our president’s recent comments about lower interest rates. Powell made a statement at an Economic Symposium that seemed to rule out any further interest rate increases this year. The 10-Year Treasury Bond, which has traded between 2.80% and 3% from April to August 2018, quickly moved to the lower end of the recent trading range. Lower interest rates are viewed as very bullish for the Gold price.

As we move out of the summer months toward the Labor Day weekend, I would like to see Gold stay above the key $1,200 per ounce support/resistance level. That would maintain a bullish sentiment with investors and professional traders. There are some bullish events coming up soon. In September, the European Gold jewelry manufacturers return from vacation and start buying Gold for the holiday season. Plus, jewelers in China and India are gearing up their Gold purchases for Golden Week in China and India’s wedding season in October.

Today: This morning, Gold tested the $1,200 per ounce support level, reaching a low of $1,203. Then, news came from the White House of a possible new trade agreement with Mexico under NAFTA’s 25-year old original agreement, and the equity markets rallied sharply. This news affected the U.S. Dollar negatively and Gold jumped $6 per ounce.

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SILVER

Silver closed last Friday at $14.78, up $0.16 for the week, that’s an increase of $0.48 per ounce since the August 16th $14.30 price, which was the 2018 low for Silver. When Gold broke below the $1,200 per ounce level, Silver closed below $15. Now, Gold has moved well above the $1,200 level and Silver is $0.22 below $15, very disappointing. The Silver/Gold ratio has now dropped to an amazing 82-to-1 level- also unsatisfactory. Silver is an extraordinary value at its current level and investors should recognize it.

Today: Silver showed support around $14.70 in early trading and rallied to $14.96 on the NAFTA news, but quickly sold off with short-selling at the important $15 per ounce resistance level.

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Long Beach Coin Expo starts on September 6th

Next week, I will be attending the September 2018 Coin Expo convention in Long Beach, California. If you are in the Long Beach area, please stop by and visit us at Table 826 on Thursday, 9/6. This is a major rare coin convention, and I expect to see active trading on the bourse trading floor, with hundreds of the major rare coin dealers and thousands of collectors and investors. I’m hoping to pick up many of the undervalued $20 Gold Saints, and Morgan Dollars, to build up our inventory and fill clients’ want lists. Please, update your want list if you haven’t recently.

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 40% of investment capital

Diversification:  Gold 55%, Silver 35%, Platinum & Palladium 10%

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

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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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