Weekly Market Report 2/9/15

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

India overtakes China as world’s top gold consumer

Silver Eagles vs Gold Eagles: Two Charts You Have to See

Swiss Exported 1,746 Tons of Gold, Russian Deliveries Raise Questions

This Week’s Headlines:

Gold
Silver
Recommended Investment Commitment and Diversification

GOLD

After an exciting January with a very strong $96 increase in the Gold price, February started off on the downside. Last Friday Gold closed at $1,234.60 per ounce, down $44 for the week on excellent trading volume. The bulk of last week’s decline came on Friday after the U.S. Labor Dept. announced a stronger than expected increase in non-farm payroll. That report showed 257,000 new jobs were created in January.

Some professional commodity market traders were very concerned about the dramatic increase in the January non-farm payroll numbers. The feeling is that the FOMC, believing the U.S. economy is coming back stronger than expected, will increase interest rates by June of this year. That is why Gold declined $28 during Friday trading. Although breaking below the very important $1,250 per ounce support level was very disappointing, I am optimistic that Gold will rally back above the $1,250 level quickly.

The Gold holdings of the large and very popular Exchange Traded Fund GLD continue to grow, increasing from 709 metric tonnes on January 1 to 773 metric tonnes by Feb. 6, 2015. The physical Gold holdings of Commodity Exchanges around the globe are increasing as trading volume grows. This is one of several factors ensuring that Gold will move higher this year.

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SILVER

Silver closed last Friday at $16.69 per ounce, down $0.56 for the week. Silver reached a high of $18.51 per ounce in January, a $2.93 increase for the year. Now, Silver has retracted over 60% from its January high, currently up only $1.11 (7.15%) per ounce since the beginning of the year. $16 per ounce is a major support level for Silver, while $18 per ounce is the short term resistance level.

After another monster year of Silver Bullion sales the supply and demand balance is likely to make a dramatic swing. A recent HSBC report showed a Silver surplus of 3 million ounces. That same report also said that as a result of major deficits in mining products and lower scrap supply availability, the HSBC projects an 11 million ounce deficit in Silver for 2015. This makes 2015 an excellent time to acquire Silver.

Right now the Silver/Gold Ratio is at 73.95-to-1

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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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