Great Year-End Tax Opportunity with Gold near lows

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

JPM and Goldman Building Big Positions in Physical Gold and Silver

Silver Prices Take the Final Dip Before the Great LEAP

Russia, China, India Unveil New Gold Trading Network

This Week’s Headlines:

Gold
Recent Bullish Fundamentals
Great Year-End Tax Strategy Opportunity
Silver
Recommended Investment Commitment and Diversification

GOLD

Last week’s Gold correction, closing at $1,248 per ounce, was caused by a combination of short term factors. Those factors being the U.S. Equity market setting record highs, a rally in the U.S. Dollar, and optimism that any tax-reform legislation passage will continue to be bullish for equities. When we have a sharp decline in the Gold price, and it drops $34 per ounce like last week, I recommend focusing on the recent bullish fundamentals and the opportunities offered.

Today: Gold rallied in Asian markets, reaching a high of $1,252 per ounce, before seeing selling on light volume. A weaker U.S. Dollar and lower Treasury Yields across the globe are supporting the price.

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Recent Bullish Fundamentals

After reports that the U.S. GDP could reach 3% this year, President Trump stated that the GDP could reach 4, 5, or 6 percent soon. If the GDP reaches 4% or higher, this would cause serious inflation, which is very bullish for the Gold price.

The Commodity Futures Trading Commission trade data showed that hedge funds took advantage of the lower Gold price and bought last week at the fastest pace in four months. According to the report, net bullish speculative positioning is at its highest level in 10 weeks. Bart Melek, head of commodity strategy at TD Securities, said that hedge funds started to buy Gold again after the release of dovish minutes from the last Federal Reserve monetary policy meeting.

The year 2017 could set a record high for physical demand of Gold bullion by central banks. Central banks around the globe aggressively spend billions of U.S. Dollars, Euros, and Yen to purchase tons of Gold to build up their reserves. It’s not just China, India, Turkey, and Russia that are buying Gold, there are many Asian, west Asian, and eastern European central banks building up their Gold reserves.

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Great Year-End Tax Strategy Opportunity

As we approach year-end, it’s a good idea to look at any 2017 income taxes liability. If you have sold some stocks, bonds or real estate in 2017 and have capital gains taxes payable next year, you may want to explore the best way to reduce those taxes.

If you purchased Gold bullion coins between 2010 and 2012 and paid over $1,350 per ounce you have any opportunity to take a tax loss, which could offset any taxes due on other investments you made in 2017.

I recommend immediately selling those Gold Eagles, Buffalos, Maple Leafs or Krugerrands and take your capital tax loss. Then, immediately replace them with Uncirculated $20 Gold Saint Gaudens or Liberties (dated 1900 to 1928) at only a few percent more. This would lower your tax basis and provide an off-setting tax loss. A major benefit for this great tax swap is the current record low premiums on Uncirculated $20 Gold Saints and Liberties.

This strategy also works with Silver if you purchased Silver bullion coins/bars at over $20 per ounce during the same time period. I recommend you do this within the next month, so please call your tax accountant to see the size of your tax problem. Then, contact David, Jim, or me to help simplify the transaction.

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SILVER

Last Friday, Silver closed at $15.83, down $0.57 per ounce for the week. Silver is now down $0.17 since the beginning of 2017. The $16 per ounce level was a very important support level, and unless Silver quickly moves back above that level, it’s possible to see $15.50 before the end of the month.

The Gold/Silver ratio has increased to 78.90-to-1.

Today: Silver reached a low of $15.62 this morning, before finding bargain buyers that rallied the price by $0.20 per ounce.

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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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