Just when Gold staying in the $1,190 to $1,210 price range was starting to frustrate me, a bullish article was published in a prestigious business newspaper. The cover article for the September 21st issue of Barron’s is called "Gold is Cheap, Inflation is Coming. You Do the Math", by Andrew Bary. Mr. Bary shares "Virtually every government in the world is trying to promote inflation partly because there is so much sovereign debt." When there is so much debt, he contends, governments have three choices: default, restructure, or inflate the currency. "Politicians, when given the chance, will choose the latter." Mr. Bary also points out that higher interest rates aren’t always a negative for the Gold price. Gold had one of its best decades during the inflationary 1970s, when interest rates soared. You can read the complete article here Gold is Cheap, Inflation is Coming. You Do The Math.

Last Friday, Gold closed at $1,195.20, up only $1.20 for the week. Gold was up $11 for the week until early Friday morning. Then, the U.S. Dollar Index rallied and someone in New York sold 10,000 December 100-ounce contracts (valued at $1.2 billion) into the Comex Market. That massive sale was completed but not until the price moved down to $1,191.50 per ounce before major buying appeared.

Although I’m getting a little impatient, my bullish investment strategy to scale into Gold was started last week around the $1,200 level. I have additional funds available if the Gold price re-tests its recent low of $1,160 per ounce. However, if the Gold price holds above the $1,200 level and starts moving higher, as many analysts predict, I will commit those funds when Gold firmly moves above the $1,230 per ounce level.

Today: A slight sell-off in the U.S. Dollar with renewed concerns about the state of negotiation on trade talks with China has helped the Gold price this morning. Gold moved back over $1,200, reaching a high of $1,204 per ounce this morning. Concerns about interest rates, ahead of the Federal Reserve meeting has kept the Gold price in check.

Back to top of report

SILVER

Silver closed last Friday at $14.27, up $0.23 per ounce for the week. For three weeks in a row, Silver has tested the $14 per ounce support level and held. Silver finally broke away from Gold dominance on Friday, increasing five cents when Gold was down $10. It’s definitely too early to see this as a change in recent precious metal trends, but, if Gold can show good price support above $1,200, Silver could rally at a larger percentage. Last Friday, the Silver/Gold ratio continued to increase to 83.75-to-1 level, an extraordinary value at its current level and investors should recognize it.

Today: Silver followed Gold higher this morning, reaching a high of $14.41 per ounce before finding short-term selling.

Back to top of report

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.

Back to top of report

REMEMBER THE BLOG

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.

Categories: Weekly Market Report