Why did Silver out shine Gold during the past two weeks?

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:

Central Banks Positivity Towards Gold Will Provide Long Term "Support to Gold Prices"

Now Looks Like A Good Time To Buy Gold

Barron’s Cover - Gold Is Cheap, Inflation Is Coming, You Do The Math

This Week’s Headlines:

Gold
Silver
Recommended investment commitment and diversification

GOLD

It’s now been 8 weeks that Gold has stayed between $1,180 and $1,220 per ounce. The velocity of the Bull/Bear war in the world’s Gold pits continues to grow. Trading volume is picking up, not surprising considering that we have moved out of the summer months. In the face of mostly negative news and events last week, Gold was only down $5.00 per ounce. Gold ended September at $1,191.50, down $10 for the month.

The Federal Reserve Chairman announced an increase in the Fed-Funds rate to 2.25% and signaled it was prepared to increase rates again in December. Additionally, the average 30-year mortgage interest rates hit a seven year high of 4.66%. Higher interest rates caused the U.S. Dollar Index to rally, driving the Gold price lower.

With Gold down over $100 per ounce since the beginning of 2018, central banks have been aggressive buyers. Countries such as Poland, Russia, Turkey, and Kazakhstan have reported purchasing 264 tons of Gold in 2018, by far the most at this stage of the year of any period in the last six years. Due to the lower Gold price and geopolitical problems, Asian and Middle-Eastern countries like India, Iran, and China are believed to be purchasing substantial amounts of Gold.

Today: A rally in the U.S. Dollar Index (over 95) and our equity markets has put pressure on all four precious metals today. This morning, Gold is trading at $1,190.50 per ounce, down $1 on average volume.

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SILVER

Silver closed last Friday at $14.62, up $0.35 per ounce for the week. For the second week in a row, Silver has closed higher with Gold being lower. The Silver/Gold ratio has declined from 85-to-1 to 81.3-to-1 during the past two weeks. With Gold being lower, why has Silver rallied 4% in the past two weeks? Silver is finding strong demand due to global inflationary expectations and increases in industrial purchasing during the current economic expansion. The key number is $15 per ounce, as many professional traders see Silver in a bearish trend until it breaks that level.

Today: With Gold breaking down below the $1,190 level today, Silver couldn’t hold Friday’s closing price. This morning, Silver is trading at $14.50 per ounce, down $0.12 on normal volume.

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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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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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