Weekly Market Report 2/2/15

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

Why gold outperformed other assets recently

This Week’s Headlines:

Gold
Silver
Rare Coin Market Update
Recommended Investment Commitment and Diversification

GOLD

During the month of January 2015, Gold moved from a low of $1,183 per ounce to a high of $1,307 while maintaining a very bullish trading environment. Gold ended the month at $1,279.20 per ounce, up $96 (8.11%) since the beginning of the year. Traditionally January has been a good month for Gold investors and last month we had two very bullish major events. The combination of the Swiss abandoning its connection with the Euro and the ECB’s major bond-buying program (Quantitative Easing) caused excellent demand for Gold, your ultimate safe-haven investment.

The Central Bank of Russia bought a record amount of Gold in the first 11 months of 2014, spending an estimated $6.1 billion. Amid geopolitical tension, Russia is increasing their Gold reserves in an attempt to reduce dependence on the U.S. Dollar. Russia’s Gold purchases accounted for a full one-third of the world’s total purchases of 461 tons, according to research by Thomson Reuters GFMS (Gold Fields Mineral Services). The total amount of Gold purchased for 2014 increased 152 tons (worth $6.1 billion at current prices); up 123% from the 2013 total. Given the tension between the US and Russia, it’s more likely Russia will sell Dollar based assets and buy Gold.

The Gold holdings of the largest and very popular Exchange Traded Fund “GLD” increased from 709 metric tonnes to 758 metric tonnes during the month of January. The physical Gold holdings of Commodity Exchanges around the globe are increasing as trading volume grows. This is one of several factors ensuring the current Gold rally has the ability to hit $1,400 per ounce shortly.

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SILVER

During the month of January 2015 Silver moved from a low of $15.60 per ounce to a high of $18.51, while keeping a very bullish trading environment. Silver ended January at $17.25 per ounce, up $1.65 (10.57%) since the beginning of the year. The Silver price has outperformed Gold since the ECB announced its plan to print over 1 trillion Euros during the next 18 months, which is highly inflationary.

The U.S. Mint reported selling 5.53 million 2015 Silver Eagles in January 2015.

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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Rare Coin Market Update

Last week I was in Long Beach, California for the Long Beach Coin Expo. This rare coin convention was well attended by thousands of rare coin collectors, investors, and dealers. Demand for high quality PCGS/NGC certified rare coins was very strong. Most of the dealers focused their attention on low population Gold and Silver rarities to fill their clients want lists. I was able to make a number of new purchases of some better date PCGS and NGC Certified Morgan and Peace Dollars, as well as a few rare Gold Saint Gaudens and Liberties. We will be contacting our clients this week with some special offers.

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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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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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