Gold has traded between $1,220 and $1,230 per ounce for the past seven days in a row. Gold closed the week at $1,226.30, up $6.70 per ounce, and up $32.50 for the month. The fact that Gold is trading above the 100-day moving average of $1,226 is very bullish, especially considering we have a higher U.S. Dollar Index, interest rates, and equity markets. However, there appears to be light professional short-selling above the $1,230 spot Gold price, but when Gold breaks above the $1,240 per ounce level, they will cover any/all short sales.

Whether it be Hungary, Poland, Russia, China, India, Turkey, or Saudi Arabia, it’s clear that central banks around the world are aggressively increasing their Gold holdings. There are two primary reasons for the buying:

1) Worldwide deficit spending that will drive down the value of currencies and lead to inflation in 2019.
2) Disposing of an overvalued U.S. Dollar for a proven asset at a bargain price (Gold).

Central banks are the world’s largest investors and have hundreds of financial analysts and economists providing expert advice. These banks are managing billions and trillions of Dollars, Euros, Yen, and Yuan and they are exchanging them for Gold at a record pace. Now is definitely the right time to add to your Gold holdings.

Today: The U.S. Dollar Index is approaching 96 and a 10-year Treasury Bill is at 3.20%, both are putting pressure on the Gold price. Gold reached a low of $1,220 per ounce, where it found great support.

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SILVER

Silver closed at $14.58 last Friday, up $0.02 per ounce for the week, but down $0.06 since the beginning of October. The Silver/Gold ratio has now increased to 83.87-to-1. Silver has not shown the price increases during the past three weeks that Gold has provided. With Gold firmly over $1,220 per ounce, many professional traders need to see Silver move above the key $15 per ounce resistance level. A spike above $15 would be the confirmation the precious metals are on an upward trend.

Today: On Gold’s early weakness, Silver tested the $14.50 per ounce support level and held. Silver remains stuck in a $14.50 to $14.80 per ounce trading range.

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October 2018 CoinStats is now available

Our numismatic CoinStats report is a great tool for rare coin investors. CoinStats is an in-depth statistical analysis of popular rare coin series that allows you to identify the best values in certified rare coins. I am proud to offer this unique and informative tool exclusively to our clients. CoinStats has been updated for October 2018 and is now available. Six different series are available: $20 Gold Saint Gaudens, $20 Gold Liberties, $10 Gold Indians, Morgan & Peace Silver Dollars, and the Walking Liberty Half Dollars.

The CoinStats report provides a list of my recommended certified U.S. Gold and Silver coins which are found listed on the Best Value page. These are not the modern issue bullion coins or low-grade circulated coins. These are PCGS/NGC certified MS63 or higher Gold and Silver U.S. rare coins, dated prior to 1948, which have a proven track record of appreciation and also offer excellent liquidity. To receive the latest CoinStats analysis, just put the word CoinStats in the subject line and email me which of the six series you would like to see.

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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.

Categories: Weekly Market Report