Weekly Market Report 1/20/14

This Week’s Headlines:

Gold
Bloomberg reports on Chinese Gold holdings
Silver
Best Rare Coin investment for 2014
2014 BU First Strike Silver Eagles available this week
Recommended Investment Commitment and Diversification

GOLD

Gold continued its move higher last Friday, closing at $1,252 per ounce, up $5 for the week and $50 (4.16%) since the beginning of the year. Gold has shown excellent support at $1,220 per ounce with resistance at $1,270 per ounce. A breakout above $1,270 would cause short sellers to cover their position, resulting in a run for $1,300 per ounce.

The COMEX Gold physical inventories fell to new record lows last week, showing that demand for physical bullion remains very strong. The COMEX Gold stock is at its lowest level since 2007, while physical Gold bullion trading volume on the Shanghai Gold Exchange surged 61% in 2013 as compared to 2012. A lot of physical Gold is moving from the West to the Asian countries.

Last Thursday the U.S. House of Representatives and Senate passed a $1.1 trillion spending plan. This legislation rolls back the recent spending cuts, raises federal workers pay, and increases military spouse’s pensions. This legislation, which will be signed into law by the President, is the start of the next wave of legislation that will rekindle the inflationary spiral in this election year.

Back to top of report

Bloomberg reports on Chinese Gold holdings

Bloomberg reports that a deeper look into China’s Gold holdings shows that its reserves may be more than 2 1/2 times higher than originally thought. China last reported that holdings in April of 2009 were 1,054 metric tons. After adjusting for net imports from Hong Kong and domestic output, the figure is closer to 5,086 metric tons. When taking away Gold used for jewelry, industrial use, and other categories, and then adding implied bar demand to central bank holdings, the figure is likely to be closer to 2,710 metric tons.
Read the complete report at
http://www.mintstategold.com/investor-education/bloomberg_gold_research_report/

Back to top of report

SILVER

The good news is that Silver closed above $20 per ounce every day last week. The bad news is that four of the five trading days last week Silver broke down below $20 per ounce during trading. Silver closed last Friday at $20.30 per ounce, up $0.08 for the week and $0.98 (4.98%) since the start of the year. Silver continues to build a nice base between $19.30 and $20.70 for the next leg higher. However, Silver must overcome the resistance at $20.70 per ounce on respectable volume to look bullish to the professional traders. Right now the professional commodity traders are buying the dips and selling into the rallies above $20.50 per ounce.

The first of the 2014 U.S. Silver Eagle shipments left the U.S. Mint on January 16, 2014. The first shipment contained 3,464,000 1oz Silver coins. My Silver Eagle sales prediction is that over 8 million ounces will sell this January; with 45 million in total sales for 2014.

Back to top of report

Best Rare Coin investment for 2014

From time to time a rare coin investment opportunity becomes crystal clear, and I believe that I have identified one now. I would like to crown PCGS/NGC certified MS66 $20 Gold Saint Gaudens as my best investment coin selected for 2014. With the price of Gold under $1,300 per ounce, U.S. $20 Gold coins have become very popular with new and experienced coin collectors and investors.

The current prices for $20 Gold Saint Gaudens at www.MintStateGold.com are as follows:

There is a very low PCGS/NGC population for MS66 Saints and a sizeable differential between the MS66 and the MS67 price. The fact that they were selling for over $4,500 when Gold was at its 2011 highs makes them very desirable now. I believe that MS66 Saint Gaudens are an unbelievable bargain and an outstanding investment opportunity.

Because of the attractive price for MS66 Saints, I was happy to purchase a small quantity of them from an estate earlier this month. Most of the coins I purchased are dated 1927 and 1928, which have a much lower population than the generic Saints dated 1908 and 1924. I am going to email our clients a special one-time offer with a 10% discount on gem quality 1927 and 1928 MS66 Saints Gaudens. This offer is limited to no more than two 1927 and/or 1928 MS66 Saints.

Back to top of report

2014 BU First Strike Silver Eagles available this week

Stuppler & Company is now accepting orders for First Strike Brilliant Uncirculated U.S. 2014 Silver Eagles at only $4.19 over spot (in lots of up to 499) and $3.99 over spot for First Strike in the sealed Green Monster box (500 coins).

You can lock in today’s low Silver price for delivery this week. Call or email me at 888-454-0444 or [email protected].

Back to top of report

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

Back to top of report

REMEMBER THE BLOG

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.

Back to top of report