Weekly Market Report 1/26/15

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

What can we learn from latest German Gold repatriation?

China’s Undisclosed Gold Reserves: A Dagger Pointed at The Heart of The Dollar

Despite higher gold price Chinese demand still surging

This Week’s Headlines:

Gold
Silver
Jan 2015 CoinStats is now available
Recommended Investment Commitment and Diversification

GOLD

The Swiss move to abandon its connection with the Euro was the harbinger of last Thursday’s announcement by the European Central Banks. The European Central Banks made their quantitative easing announcement on Thursday, January 22, 2015. The ECB President, Mario Draghi, launched a major government bond-buying program, pumping 60 Billion Euros per month of new money into a sagging Euro-zone economy. This program is scheduled to end in September of 2016, and will create over 1 trillion freshly printed Euros.

After the ECB announcement the Euro fell to under $1.10 to the U.S. Dollar (a 10-year low for the Euro) and Gold rallied $22 per ounce. What is truly amazing is that Gold continues to rally in the face of a record high U.S. Dollar and very low oil prices. I believe 2015 is going to be a great year for precious metal investors. Gold will renew its bullish trend this year, reaching $1,500 per ounce or higher by year end. I think worldwide currency instability, combined with global quantitative easing, are going to be the primary reasons that Gold/Silver are heading back to record highs within the next couple years.

Last Friday, Gold closed at $1,292.80 per ounce, up $16 for the week, and up $109 (9.26%) since the beginning of 2015. Physical and Exchange trading demand continues to grow worldwide. The Gold holdings of the popular Exchange Traded Fund “GLD” have increased from 709 metric tonnes to 741 metric tonnes in just three weeks. Exchange trading volumes around the globe are growing. These facts and others ensure that the current Gold rally has the ability to hit $1,400 per ounce shortly.

I read an excellent article last Friday by David Smith about the Chinese Gold holdings and their strategy. This article provides interesting information that confirms the Chinese people and government’s beliefs for owning Gold. The article also mentions the possibility of a Chinese decision to enable a newly Gold-backed currency, the Yuan, to make its debut on the world’s financial stage. The link to the article is at the beginning of this report under the recent informative articles section: China’s Undisclosed Gold Reserves.

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SILVER

Last Friday Silver closed at $18.30 per ounce, up $0.55 for the week, and up $2.72 per ounce (17.46%) since the beginning of 2015. Trading was very active on the world’s commodity exchanges with excellent volume. $20 per ounce is the long term resistance level for Silver, and at the current rate of increase we could see Silver move above that level by March.

The U.S. Mint reported selling 4.76 million 2015 Silver Eagles in the first 22 days.

In 2014 Silver reached a high of $22.22 per ounce, and a low of $14.16 per ounce. I believe 2015 will be a profitable year for Silver investors if they are able to purchase Silver at today’s low prices.

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Jan 2015 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 certified rare coins. I am proud to offer this unique and informative tool exclusively to our clients. The CoinStats report is now updated for January 2015 and is available in PDF format. Six different series are available, $20 Gold Saint Gaudens, $20 Gold Liberties, $10 Indians, Morgan & Peace Silver Dollars, and the Walking Liberty Half Dollars.

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. These are PCGS/NGC Certified MS63 or higher Gold and Silver U.S. rare coins, dated prior to 1948, which have a proven track record of appreciation and also offer excellent liquidity. To receive the latest CoinStats analysis, just insert the word CoinStats in the subject line and email me which of the six series you would like to see.

I want to thank the clients who gave suggestions on how to improve CoinStats. Those recommendations are appreciated and as a result, I have made some additional changes. The first suggestion was to put coins that have increased in value in blue and those that deceased in red, on the Best Value page. Additionally, I am now indicating when new coins have been added to the Best Value page. If you have any suggestions, please feel free to email me.

Because I believe that CoinStats is one of the best tools to help rare coin collectors and investors recognize great value, I will continue to look for ways to provide more important and relevant information. Your input on CoinStats is always appreciated.

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 45% of investment capital

Diversification:  Gold 45%, Silver 45%, Platinum & Palladium 10%

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

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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.

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