Weekly Market Report 2/10/14

This Week’s Headlines:

Gold
Physical Gold is Still Moving from West to East
2014 44-Page Gold Booklet is Being Mailed Out This Week
Silver
Recommended Investment Commitment and Diversification

GOLD

After the January $37.90 per ounce (3.15%) increase in the Gold price, February began with a rally, up $23.10 per ounce (1.87%) in just the first week. Gold has tested the key resistance level of $1,270 per ounce five times since January 24 and keeps coming back. Regardless of when it finally breaks through, the sixth attempt or seventh, it is clear that this year the fundamentals are building for Gold to move much higher by year end.

Last Friday, the Labor Department reported that U.S. employment growth for January was 113,000 new jobs, the slowest since January 2011 -- economists had expected 178,000 new jobs. This report is fuelling speculation the Federal Reserve will not further reduce its stimulus. This news is bullish for Gold, and it has broken through the $1,270 per ounce level this morning for the sixth time in three weeks. As Gold approaches $1,278 (short term resistance) I am seeing a number of professional commodity traders starting to cover their short positions.

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Physical Gold is Still Moving from West to East

Three weeks ago 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 to almost 6% of all COMEX Gold stocks this year. Speculation is this Gold is heading to China and other Asian countries, as the Chinese government provided import licenses for HSBC and ANZ banks last week. This will provide additional tonnage of Gold to satisfy the growing Chinese demand.

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2014 44-Page Gold Booklet is Being Mailed Out This Week

GOLD: REAL MONEY

Your Ultimate Protection
Against Inflation and Deflation

After six months of research and three months of reviewing, editing, and proof reading, my 2014 Gold Booklet was finally sent to the printer last week. It will be delivered back this Wednesday, and start going out. I am truly excited about mailing you, my loyal clients, 2 copies. I believe that this is one of my very best works of research and analysis of the precious metal markets. I want to publicly thank my son David and RickRhoads for all of their input and advice. If you want to read an internet copy of my Gold Report, it is now available on www.coinmag.com by just providing your name and email address.

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SILVER

Silver finally got on the bullish track last week, up a whopping $0.82 per ounce (4.09%), and now trading at $19.93, up 1.14% for 2014. $20 per ounce continues to be Silver’s key resistance level. Silver has broken out above the key $20 resistance level seventeen times since the beginning of the year and hasn’t been able to hold onto that level. The highest price that Silver has reached in 2014 is $20.67 per ounce on January 14 -- then it dropped back to a low of $18.97 on January 30th 2014.

While $20.70 is the short term resistance level, I believe that we need to see Silver at over $21 per ounce to turn the professional commodity traders bullish.

The Gold-Silver ratio is now at 63.35/1.

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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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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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