Weekly Market Report 1/28/13

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.

This week we are accepting orders for the 2013 1oz Gold & Silver Eagles for immediate delivery at today’s low prices. These are the First Strike 2013 Gold and Silver Eagles in mint sealed boxes or Perfect MS70 in PCGS holders. We also have a limited supply of the 2013 1oz Gold Buffalo in First Strike graded Perfect MS70 by PCGS.Whether you are interested in owning certified 2013 Gold or Silver U.S. certified coins or the popular sealed boxes of 500 piece First Strike Silver Eagle Green Monsters (Now sold out by the U.S. Mint) see below for more information.

GOLD

Last Tuesday Gold tested the $1,700 per ounce resistance level for the third time this year.  Gold then sold off, closing at $1,657 per ounce on Friday, down $30 per ounce for the week. Morgan Stanley lowering its price prediction of Gold to an average of $1,773 per ounce for 2013, plus an increase on India’s Gold import tax, were contributing factors to last week’s correction. Friday’s close is right on the Gold’s short term support line and I expect to see an upward move this coming week.

Next Wednesday’s Federal Reserve policy meeting and Friday’s U.S. employment data will likely provide direction for the Gold market. The Fed meeting is likely to give clues on U.S. monetary policies and whether continued economic-stimulus measures are on the way. Strong quantitative easing policies from central banks and slowing economic growth should provide long-term support for Gold prices.

INDIA RAISES GOLD IMPORT TAX

India raised its Gold import tax by 2% to 6%. This, considering that imports of Gold are second only in value to oil in India (one of the few, if not only, countries to have Gold imports be so high relative to other commodities), this new tariff is of particular interest. Gold demand has proven to be largely inflexible in India and it remains to be seen whether or not the government’s intention to rein in Gold demand is curbed with the new tariff increase.

GERMANY WANTS ITS GOLD BACK

The Bundesbank, Germany’s central bank, announced on January 16, 2013 that it was going to bring a portion of its Gold stored abroad back to its vaults in Frankfurt. All 374 tonnes of German Gold stored at the Banque de France, will be repatriated, along with 300 tonnes (out of about 1,500) stored at the Federal Reserve Bank in New York City. For unexplained reasons, the transfer from New York to Germany will be spaced out over seven years, surprising since France will transfer the Gold in 2013. 

Among central banks, the Bundesbank is the second largest holder of Gold worldwide, with 3,400 tonnes; the U.S. holds 8,133 tonnes. During the Cold War, when West Germany was concerned about the possibility of a Soviet invasion, Germany moved a great deal of its Gold to London, Paris, and New York. From another point of view, holding Germany’s Gold was one of a number of ways the victorious allies kept tight control on post-World War II West Germany.

Years ago, Germany repatriated 850 tonnes out of the 1,300 stored at the Bank of England. When the current moves are completed, at least 50% of German Gold will be in Frankfurt, up from 31%.

The Bundesbank said that it made sense to keep some of its Gold in the U.S. and the UK, because in the event of a currency crisis it could quickly use it to buy dollars or pounds, but with France and Germany both on the euro, there was no similar need to keep Gold in Paris.

Despite the Bundesbank’s efforts to downplay the significance of its move, many analysts see deeper motives, including the following:

• Increasing mistrust among the world’s central banks, as trade wars and currency wars intensify.
• Decreasing confidence that the USD will maintain its position as the global reserve currency.
• Recognition that the Gold standard is making a de facto comeback.
• Growing German displeasure with France in pushing Germany to fund bailouts of failing governments and banks in the southern tier of the Eurozone, along with strengthening ties between Germany and Russia.

Germany is not alone in repatriating Gold. In January 2012, Venezuela completed its transfer of 160 tonnes of Gold back to Caracas from Europe, the United States, and Canada, as “a safeguard against instability in financial markets.” According to Yahoo! Finance (January 22, 2013)  and other sources, “There’s talk that the Netherlands and Azerbaijan will also repatriate Gold reserves.”

Along with increasing purchases of Gold by central banks, the move toward repatriation of Gold recognizes—and accelerates—the devaluation of all fiat currencies.

SILVER 

Silver pretty much followed Gold’s downward move last week, trading as low as $31.12 on Friday. Silver closed at $31.20 per ounce on Friday, down $0.72 per ounce for the week. On Wednesday, Silver reached $32.48 per ounce on excellent demand. It seems Silver has found its short term trading range between $31 and $33 per ounce. The Silver/Gold ratio remains at a favorable level for Silver of 53.09-to-1.

2013 started the year with numerous reports of increasing global demand for physical Silver. Two weeks ago the U.S. Mint sold a record six million Silver 1oz eagles in only 14 days forcing the Mint to suspend sales. Last week the Silver Institute provided a report that Silver Jewelry demand over the holidays was at all-time record highs.  Now, we are seeing reports that Silver is gaining in popularity in China as an investment asset, since the Chinese believe that Silver is more affordable than Gold.  See the complete article at http://www.mintstategold.com/investor-education/china_likes_silver/  

PLATINUM & PALLADIUM

Both Platinum and Palladium showed excellent price strength last week. Platinum was up $21 last week, extraordinary considering that Gold dropped $30.40 per ounce. At $1,694 per ounce Platinum is now at a $38 per ounce premium to the price of Gold. Palladium was up $18.25 last week, closing the week at $741 per ounce, above the key $700 per ounce resistance level on the way to $800 per ounce as major shortages of physical Palladium have been announced.

The 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, 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.

1^st Strike 2013 Gold & Silver Eagles are now available
Immediate Delivery for 2013 1oz 1^st Strike U.S. Gold & Silver Eagles at Today’s Low Price

The 2013 U.S. 1 ounce Gold and Silver Eagles are now available at today’s low prices. We are offering 1^st Strike 2013 Gold & Silver 1oz Eagles in PCGS Perfect MS70 grade. We are also offering 1^st Strike 2013 U.S. 1oz Gold Buffalo graded perfect MS70 by PCGS. Lastly, we have a limited supply of the popular 1oz 2013 Silver Eagles (the U.S. mint is now sold out of these) in original tubes of 20, or sealed boxes of 500 (First Strike Green Monsters).

To place your order call Barry/David at 888-454-0444 or email [email protected] or [email protected]

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.