Gold & Silver tested lows and are now moving higher

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

Are You Ready For The Next Rally?

Weakness in Gold Unlikely to Continue

What Are Graded Coins and Why Do They Matter?

This Week’s Headlines:

Gold
Great Year-End Tax Strategy Opportunity
Silver
Recommended investment commitment and diversification

GOLD

After reaching a 5-month low of $1,235 last Tuesday, Gold rallied the rest of the week. Gold closed at $1,254.50 on Friday, up $6.50 for the week, and showing a $105 increase since the beginning of 2017. Gold should now stay above the $1,250 resistance/support level, and trade between the $1,250 and $1,270 range again. This would definitely be a positive for the short-term Gold market.

The direction of last week’s Gold trading was focused on two facts:

1. Last Wednesday, the FOMC statement projected a rather tame inflation for the next few months. That news caused the U.S. Dollar to sell-off and heavy precious metal short-covering, bringing in fresh bargain buyers.
2. Last Friday, just before noon Eastern time, it became clear that Republican leadership in Congress had made headway on passage of Tax-Reform legislation. It appears that the new legislation will add Trillions of Dollars to the deficit. In the short-term this would be bearish for Gold; in the long-term it would be bullish

Today: Gold rallied in Asian markets, reaching a high of $1,265 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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Great Year-End Tax Strategy Opportunity

With about two weeks left in 2017, it may be a good idea to look at 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/or paid over $1,350 per ounce you have an 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 taking 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 $16, up $0.18 per ounce for the week. Silver is now unchanged since the beginning of 2017. After making a 1-year low of $15.58 on Tuesday, it would be very bullish to see the price of Silver move back above the $16 per ounce level.

The Gold/Silver ratio has increased to 78.30-to-1.

Today: After breaking back above the key $16 support/resistance level, Silver reached a high of $16.19 this morning before finding some light selling.

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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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