Gold & Silver breakout above resistance levels

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

Russia Upping the Ante in its Gold Reserve Increases

Are You Ready For The Next Rally?

Swiss Gold Exports – Mainland China Top Dog Again

Silver Price to Bounce Back Strong Next Year After Lackluster 2017

This Week’s Headlines:

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

GOLD

After reaching a 5-month low of $1,235 on Tuesday, December 12, the Gold price has rallied $40 per ounce. On Friday, Gold closed at $1,275 per ounce, up $21.30 for the week, and up $127.10 per ounce (11%) since the beginning of 2017. Gold breaking above its recent trading range of $1,250 to $1,270 before year-end is a very important move. If Gold can stay between $1,270 and $1,300 until the end of the year, it would be a strong indicator of the upward direction of Gold for next year. Historically, January has been an excellent month for metals prices.

It appears that the new Tax-Reform legislation isn’t going to have the negative impact on Gold that many analysts had predicted. With passage of the new Trump tax law, it is clear to traders what changes to expect. Upon reviewing the bill, it is expected that it will add over $1.5 trillion dollars to the US deficit, and we’re going to see the US Dollar move lower.

Today: Gold started the day in Asian markets moving towards the $1,270 support level, reaching a low of $1,273 per ounce. In late Asian and European trading, Gold started a rally, reaching a high of $1,283.60 and stayed at that level in the U.S. market.

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Rare Coin report

Next week, I will be attending the January 2018 FUN Convention in Tampa, Florida. This is the first major rare coin convention of 2018 and I expect to see a very active trading bourse floor. With hundreds of the major rare coin dealers and thousands of collectors and investors, I’m hoping to pick up many of the undervalued $20 Gold Saints, and Morgan Dollars, to build up our inventory and fill clients’ want lists. Please, update your want list if you haven’t done so recently.

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Great Year-End Tax Strategy Opportunity

This is the last week in 2017 to look at any possible income tax 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 $16.38, up $0.38 per ounce for the week. Silver is now up $0.38 per ounce (2.4%) since the beginning of 2017. Silver stayed above the $16 per ounce resistance level all five trading days last week. This is very positive considering the recent December 12th one-year low of $15.58 per ounce.

The Gold/Silver ratio has decreased to 77.77-to-1.

Today: Silver pretty much mirrored today’s Gold trading. Silver reached a low of $16.29 and has rallied to reach a high of $16.56 per ounce in U.S. trading.

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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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