Gold trading at new 2017 high and demand increases

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This Week’s Headlines:

Gold
Silver
U.S. 1oz Palladium Eagle going on sale
Recommended Investment Commitment and Diversification

GOLD

August was a super month for Gold investors with Gold rallying $49 per ounce during the month. The rally continued on Friday with Gold closing at $1,330, a new 2017 high for the year, and a $179 (15.5%) increase since the beginning of the year. We are definitely seeing Gold and Silver off and running as more professional traders, hedge funds, and experienced traders are all stepping up to the plate.

All the fundamentals for a continued move to the $1,400 per ounce level are in place: a weaker U.S. Dollar (92.76), the lowering of the 10-year treasury bond interest rates (to 2.10%), and the geopolitical problems with North Korea. There are also a couple new bullish facts: Bridgewater Associates, which has $160 billion in assets under its management, has become bullish on Gold, and Tuesday’s CME trading volume set a 2017 record high for the December contract with 445,127-hundred-ounce Gold contracts traded (over 44 million ounces).

What I would like to see this coming week is for Gold to trade between $1,310 and $1,350 per ounce. After the recent $49 rally in August, this week it would be excellent to see some price consolidation while building a firm base for the next move above $1,350, on the way to $1,400 per ounce.

Today: As the U.S. Dollar and interest rates continue to drop, Gold is trading in a narrow $10 high/low range from $1,328 to $1,338 per ounce. This is the highest price Gold has traded at since September 26, 2016.

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SILVER

Silver investors had to be happy with the price increase in August. Silver was up $0.79 (4.7%) for the month, closing above the key $17 resistance level at $17.57 per ounce. Silver continued the rally on Friday (Sept 1st) closing the week at $17.81 per ounce. Silver is now up $1.83 (11.4%) for 2017, but well below the 2017 high of $18.66, reached on April 17th. Like Gold, Silver definitely needs some price consolidation this week. If Silver could trade between $17.50 and $18 per ounce this coming week, it would be bullish for the long term.

The Gold/Silver ratio has increased to 74.67-to-1.

Today: Silver moved over $18 per ounce this morning, the first time since April 21, 2017. Silver is trading today between $17.76 and $18.04 per ounce. $18 is a key resistance level for the long term move of Silver up to $20.

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U.S. 1oz Palladium Eagle going on sale

The U.S. Mint Acting Deputy Mint Director stated last month that The United States Mint will start selling American Eagle 1oz $25 Palladium coins to authorized mint distributors in September. This bullion coin will be minted in Philadelphia without a mint mark. However, there will be a proof version issued in 2018 from the West Point Mint, with a W Mint Mark. The obverse design is similar to the Mercury Dime with the reverse displaying an eagle (see image below).

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 30% 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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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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