2017 Gold and Silver rally continues the move higher

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

Gold Hits Highest in a Year as Rate Hike Expectations Ebb

In Gold We Trust: How the ’Entire Western Monetary System is a Fraud’

Gold Hits One-Year Peak as Dollar Drops on Weak U.S. Jobs Data

This Week’s Headlines:

Gold
Silver
Rare Coin Report
Recommended investment commitment and diversification

GOLD

September has started out with Gold continuing to set new 1-year highs. After Monday’s Labor Day holiday Gold rallied $14 on Tuesday, with trading volume hitting a record 559,388 hundred-ounce December CME contracts (almost 56 million ounces). Gold closed last Friday at $1,346 per ounce, up $28 for the week and up $197 (17%) since the beginning of the year. Friday, Gold actually reached a high of $1,358.50 before selling appeared.

Last Thursday and Friday Gold made two unsuccessful attempts to break above the key $1,350 per ounce resistance level. Historically, before making a third attempt to break above an important precious metal resistance level, I would expect to see a test of recent lows. Gold’s recent low was $1,331 per ounce.

Some of the key reasons for this Gold rally are a 32-month low for the U.S. Dollar, record low interest rates, and the 10-year Treasury bill yield being very close to the 2% level, a two-year low. Concerns about North Korea have also increased Gold investment product buying around the globe.

Today: Gold sold off today as the Dollar and interest rates recovered from recent lows. Gold reached a low of $1,331 per ounce this morning before bargain buyers stepped in.

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SILVER

Last week, Silver pretty much mirrored Gold’s up and down moves. For the week, Silver was up $0.31 per ounce to close Friday at $18.02 per ounce. Silver closed last Thursday and Friday above the important $18 resistance level, reaching a high of $18.19 on Friday. If Gold tests support at $1,331, I would expect to see Silver test the $17.70 level. Silver is now up $2.13 (13.35%) 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 before moving higher.

The Gold/Silver ratio has increased to 74.56-to-1.

Today: Silver followed Gold lower this morning, reaching a low of $17.69 before seeing serious buying.

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Rare Coin report

David and I just returned from the Long Beach Coin Expo show. Trading activity was light because many of the dealers from Texas and Florida weren’t able to attend. However, many collectors and investors were aggressively looking for good values in Silver and Gold rare coins. With the Gold price up $90 and Silver up $1.90 in the last month, many better date coins aren’t yet reflecting this increase. Coming out of the slow summer months, this trading anomaly should self-correct soon. So, both David and I were active buyers.

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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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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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