Weekly Market Report 1/27/14

This Week’s Headlines:

Gold
Gold Surges on Speculation India May Ease Import Restrictions
Soaring Demand for Popular Gold Bullion Coins
Physical Gold is Still Moving from West to East
Silver
2014 U.S. Silver Eagles Have Arrived
January 2014 CoinStats Now Available
2014 First Strike Silver Eagles Boxes are Now Available
Recommended Investment Commitment and Diversification

GOLD

The 2014 gold rally continued last week with a close on Friday of $1,264.30, up $62.40 (5.19%) from the beginning of the year. Last Thursday was Gold’s best day this year so far with a $23.70 increase, with trading volume that was 209,678 for the February contract, the highest this year. The very important $1,270 per ounce resistance level was briefly suppressed last Friday, before traders took profits prior to the weekend. I look for Gold to make a few more attempts at breaking out above the $1,270 level this week on its way to $1,300 per ounce.

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Gold Surges on Speculation India May Ease Import Restrictions

For the past year India’s attempt to impose price controls on its Gold imports has only done one thing: citizens have been forced to find newer and more creative means of smuggling in Gold. It has gotten so bad that Indians are now smuggling the yellow metal through Pakistan, on airplanes, and now smuggling has even surpassed the illegal drug trade. Gold smuggling in India is booming, estimated at 200 metric tonnes in 2013. Based on these facts, India’s Congress party chief, Sonia Gandhi, made a request last Thursday to the Indian government to make a cut in the record import duty on Gold and for other restrictions to be eased. Because of this, Gold rallied to $23.70 per ounce in Asian trading.

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Soaring Demand for Popular Gold Bullion Coins

Physical demand for bullion Gold investment coins is soaring as the Austrian Mint reports that it is running 24 hours a day to meet orders for Gold coins. The Austrian Mint joins its counterparts from the US, UK and Australia who are reporting accelerating demand. The Austrian Mint Director has hired extra employees and added a third eight-hour shift to the day in a bid to keep up with demand. Purchases of bullion coins at Australia’s Perth Mint rose 20% this year through January 20 from a year earlier. Gold Eagle and Buffalo sales by the US Mint are set for the best month since April 2013.

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Physical Gold is Still Moving from West to East

Last week, we saw the largest one-day withdrawal of physical COMEX Gold in over a year as the JPMorgan (JPM) warehouse withdrew a stunning 321,500 ounces of Gold (10 tonnes). Additionally, we also saw a large withdrawal from the Scotia Mocatta warehouse, which brings the total withdrawal for the week to almost 5% of all COMEX Gold stocks. Speculation is this Gold is heading to China and other Asian countries.

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SILVER

It was very disappointing that Silver could not hold its value above the important $20 per ounce support level last week, despite the bullish Gold news that came out of India. Silver appears to be currently locked into a $19.30 to $20.70 per ounce trading range and many professional commodity floor traders are selling into rallies and buying on dips. I believe that Silver is waiting for some inflationary news or for Gold to move above $1,300 per ounce before breaking out above the $20.70 per ounce level.

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2014 U.S. Silver Eagles Have Arrived

Last Tuesday we received our first shipment of 2014 Silver Eagle Green Monsters. A Mint sealed Green Monster contains 500 2014 1oz Silver Eagles that are considered to be First Strikes. Many dealers are submitting these Green Monsters to PCGS and NGC to be graded MS70 and receive the popular First Strike classification on the holder. We expect to receive our shipment of 2014 PCGS Graded MS70 Silver Eagles by Feb. 6, 2014. As of last week, the US Mint has sold 4 million 1 ounce Silver Eagles, on the way to what I believe will be a record sales year of over 45 million Silver Eagles.

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January 2014 CoinStats 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 January 2014 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 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 1936, that have a proven track record of appreciation and also offer excellent liquidity. To receive the latest CoinStats analysis, just insert CoinStats in the subject line and email me which of the five series you would like to see.

Also for 2014, I am happy to announce that I have increased the CoinStats analysis by adding a new column that shows the increase in the PCGS/NGC population for the past five years. Investors realize the PCGS/NGC population does increase, but comparing the percentage of that increase is an important component in the selection of undervalued Gold and Silver rare coins.

What is surprising? Some of the five year population results in the CoinStats report show some coins that have actually declined during that period. How could this happen? There are a number of legitimate reasons that a PCGS and/or NGC certified coin could have a lower population in a five year period.
1) The coin could have been cracked out of its holder and re-submitted, but the owners never sent in the old certificate to the grading service so it could be deducted.
2) The coin could have been upgraded or crossed and the owner never sent in the certificate.
3) Because the new PCGS/NGC Plus grades are not yet incorporated into the CoinStats numbers, the coin may now have a Plus grade. (Plus grades will be added to CoinStats when the quantities increase)

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

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2014 First Strike Silver Eagles Boxes are Now Available

Stuppler & Company is now selling 1st Strike U.S. 2014 Silver Eagles at only $3.99 over spot in lots from 100-499 and $3.89 over spot for 1st strike in the Green Monster box (500 coins).
You can lock in today’s low Silver price and immediate delivery. Call or email me at 888-454-0444 or [email protected]

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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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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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