Weekly Market Report 10/7/13

This Week’s Headlines:

Gold
Asian Gold demand
Silver
October 2013 CoinStats now available
Recommended Investment Commitment and Diversification

GOLD

Gold fought to stay above the important $1,300 per ounce resistance level last week. It is truly disappointing that the price of Gold did not increase last week given that the U.S. Government did shut down and that there are looming concerns over the upcoming October 17 deadline to raise the $16.7 trillion debt ceiling. During the last debate over the U.S. debt ceiling back in 2011, Gold hit an all-time high of $1,920 per ounce and an agreement was reached by Congress only at the last minute.

This week I expect to see Gold trading in the $1,310 to $1,350 per ounce price range as we await news from congress on both the government shutdown and an agreement to raise the debt ceiling. I wouldn’t be surprised to see Gold test its support level ($1,300) or the resistance level ($1,350) during the week based on the news.

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Asian Gold demand

This week with the Chinese holiday over I expect to see the Chinese become sizeable physical Gold buyers, particularly because they love cheap Gold. With the Gold price around $1,300 per ounce and the Chinese Yuan at 6.12 to the Dollar, the cost of Gold is very attractive.

Additionally, the wedding season has started in India. It appears that even with the heavy import duties now in place in India, this wedding season could still set records for Gold demand.

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SILVER

Silver closed last Friday at $21.75, down $0.08 per ounce. $22 per ounce continues to offer resistance, however we are seeing more and more support at $21 per ounce. The volume of contract trading on the world’s exchanges has been moderate, with physical demand for Silver investment products continuing at record levels. The Silver/Gold ratio has strengthened, and is now at 60.22 to 1.

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October 2013 CoinStats now available

Our numismatic CoinStats quarterly report is the best investment 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 U.S. certified rare coins. I am proud to offer this unique and informative tool exclusively to our clients. The October 2013 CoinStats report is now available and covers $20 Gold Saint Gaudens, $20 Gold Liberties, Morgan & Peace Silver Dollars, and the Walking Liberty Half Dollar series.

CoinStats 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; they are PCGS/NGC Certified MS63 or higher Gold and Silver U.S. rare coins, dated prior to 1948. These investment quality rarities have had a proven track record of appreciation over the past 60 years or longer.

For the latest CoinStats analysis, just insert the word CoinStats in the subject line and email me which 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 50%, Silver 45%, Platinum & Palladium 5%

Diversification includes 50% in long term investment quality rare coins and 50% short term bullion products

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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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