Weekly Market Report 1/14/13

The January 2013 CoinStats update is now available for $20 Gold Saint Gaudens, $20 Gold Libertys, Morgan & Peace Silver Dollars, and the Walking Liberty Half Dollar series.

And this week, we are accepting pre-orders for the 2013 1oz Gold & Silver Eagles at today’s low prices. These are the First Strike 2013 Gold and Silver Eagles in mint sealed boxes or PCGS/NGC MS70 holders. Whether you are interested in certified 2013 Gold sets or the popular sealed boxes of 500 pieces (First Strike Green Monster Boxes) see below for more information.

GOLD

Gold’s price volatility settled down a little since last week. After seeing Gold reach $1,695 per ounce and quickly trade down to $1,626, (a $69 high/low range within 48 hours in the first week of the New Year), last week looked more like consolidation within the Gold market. For the entire week the high/low range was only $36 per ounce, closing on Friday at $1,660.60 per ounce, up $11.70 per ounce. The current short term trading range is $1,650 to $1,680 per ounce. A breakout above $1,680 would allow the Gold market to test $1,700 per ounce again. 

Chinese Physical Gold Demand is Soaring 

Chinese Gold imports for November 2012 were 90.8 metric tons. This was the second highest gross import number of 2012, double the 47 tons imported in October. This brings the year to date total to a massive 720 tons of Gold through November. If last year is any indication, the December total will be roughly the same amount, and will bring the total 2012 import amount to over 800 tons, double the 392.6 tons imported in 2011. To put Chinese Gold demand in context – for the first eleven months of 2012 China bought some $39 billion worth of Gold, while increasing their holdings of US Treasury’s by under $10 billion in the same time period.

More Central Bank Monetary Stimulus on the Way

The Japanese government will spend 10.3 trillion yen (US$116 billion) to drive a recovery from a recession in Prime Minister Shinzo Abe’s first major policy initiative to end deflation and boost growth. Around 3.8 trillion yen will be allocated for disaster prevention & reconstruction, with 3.1 trillion yen directed to stimulating private investment and other measures, according to a statement released today by the Cabinet Office. Extra spending will increase gross domestic product by about 2 percentage points and create about 600,000 jobs, the government said. 

SILVER 

Last week, Silver closed every day above the key $30 per ounce support level. Silver reached a weekly high of $30.95 on Thursday before closing the week at $30.40 per ounce on Friday, up $0.46 per ounce for the week. Last week’s trading activity leads me to believe that Silver should make another attempt to break through the $31 per ounce resistance level early this week. Announcements last week from the European Central Bank, Great Britain, and Japan about the increases in Quantitative Easing to stimulate their economies supported the price of Silver. Physical demand for Silver, on a global basis, has been growing for the last few years and now we are seeing the pace of that demand increase across Asia and within the U.S. The Silver/Gold ratio remains at a favorable level for Silver of 54.61-to-1. 

U.S. Silver Eagle Sales

In the first ten days of 2013, the U.S. Mint sold 4,782,000 1oz Silver Eagles. Compare that to the entire month of January 2012 when the Mint sold a record 6,107,000 oz of Silver Eagles. Based on 2013’s first ten days sales I am looking for a new record of over 7,000,000 ounces of .999 fine U.S. Silver Eagles. Physical demand for Silver is BACK & GROWING!

PLATINUM & PALLADIUM

Both Platinum and Palladium showed excellent price strength last week. Platinum was up $73 (4.6%) last week, extraordinary considering that Gold increased $11.70 per ounce. Platinum is now at only a $29.40 per ounce discount to the price of Gold. Palladium was up $13 last week, closing the week at $701.45 per ounce, above the key $700 per ounce resistance level. 

RARE COIN REPORT FROM THE FUN CONVENTION IN FLORIDA

Last week I traveled to Orlando, Florida to attend the Florida United Numismatic (FUN) Coin Convention. This convention is a major event for rare coin dealers, investors, and collectors. In addition to a trading floor with over 800 rare coin dealers, there was a major Auction. During the convention I had the opportunity to attend important industry meetings and speak with many of the largest rare coin and precious metal dealers in the world. 

I always look forward to the FUN convention; it’s an excellent market indication for the coming year. This show was no different. Dealer, Collector, and Investor demand for investment quality U.S. Gold and Silver Coins for the last four years has never been stronger. As many of you know, prices on many of the most popular series of rare coins has been unchanged or lower during the past four years, but that trend appears to have been reversed in the past few months. Many of the largest dealers in the country with whom I spoke are very aggressive buyers for investment quality Gold and Silver U.S. rare coins. 

JANUARY 2013 COINSTATS IS NOW AVAILABLE

Our numismatic CoinStats 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 January 2013 CoinStats update is now available for $20 Gold Saint Gaudens, $20 Gold Liberties, Morgan & Peace Silver Dollars, and the Walking Liberty Half Dollar series.

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 overly-hyped 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 a proven track record of appreciation over the past 60 years or longer.
For the latest CoinStats analysis, just put CoinStats in the subject line and email me which series you would like to see.

PRE-ORDER 2013 1OZ U.S. GOLD & SILVER EAGLES AT TODAY’S LOW PRICES

You can PRE-ORDER the 2013 U.S. 1 ounce Gold and Silver Eagles at today’s low prices. We are offering First Strike 2013 Gold 1oz Eagles in PCGS or NGC in MS70 Grade. We are also offering First Strike 2013 Silver Eagles in quantities of 100 or more. These are available in the popular original tubes of 20, or sealed boxes of 500 (First Strike Green Monster Boxes). 

We expect to ship the 2013 Silver and Gold Eagles between January 20 and January 30, 2013. Actual delivery dates are based on the U.S. Mint’s exact shipment dates and specific shipment dates cannot be guaranteed in advance. To place your order, call Barry or David at 888-454-0444 or click on the following links:

American Gold Eagles

American Silver Eagles

Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 35% of investment capital

Diversification: Gold 50%, Silver 40%, Platinum & Palladium 10%

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.