Weekly Market Report 2/17/15

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

World Gold Councils 2014 Gold Demand Annual Report

25% of physical Gold buyers are crazy, metals executive says

This Week’s Headlines:

Gold
Why did 166 metric tons of Gold leave NY Fed Reserve Bank in 2014?
Silver
Recommended Investment Commitment and Diversification

GOLD

Last week Gold hit a low of $1,216.50 on Wednesday, the highest CME trading volume day of the week. Gold closed at $1,227.10 per ounce last Friday, down $7.50 per ounce for the week. Last week’s trading activity had excellent consumption and consolidation above the key $1,220 price level.

During the long holiday weekend Gold traded in a very narrow range from $1,228 to $1,237. Trading volume in China is increasing as we approach the Chinese New Year (Year of the Goat). The Chinese New Year - celebrated this year on February 19th - marks the peak period for Chinese households to buy Gold.

This morning the Gold price fell, after Cleveland Federal Reserve President Loretta Mester hinted that U.S. interest rates are going to rise in June. Gold reached a low of $1,204 per ounce before sizeable buying appeared.

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Why did 166 metric tons of Gold leave NY Fed Reserve Bank in 2014?

1. Central banks became net Gold buyers in 2010, now in 2014 it’s a matter of repatriating the supply.
2. Governments added 477.2 metric tons to their reserves, the second-biggest increase in 50 years and 17% more than a year earlier. The World’s Central Banks have bought 1,964 tons of Gold over the past five years as they run away from holding U.S. Dollars.
3. Russia has been buying Gold for 9 straight months as it competes against U.S. sanctions.
4. China continues to buy large quantities of Gold, taking delivery from the New York Federal Reserve bank into China’s new New York bullion vault, which will hold twice the country’s demand for the precious metal.
5. IMF data shows that central banks all over the world are increasing Gold reserves, the emerging markets show the largest increases.
6. Countries like Kazakhstan, Ecuador, and Belarus show December increases in their Gold reserves, as published by the Wall Street Journal.

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SILVER

Silver closed last Friday at $17.29 per ounce, up $0.60 for the week. Silver reached a low of $16.61 per ounce before major buying appeared. $16 per ounce has shown to be a major support level for Silver, while $18 per ounce is the short term resistance level.

The U.S. Mint continues to sell large quantities of one ounce .999 Silver Eagles. As of Friday, February 13, 2015 they have sold over 7 million coins since the beginning of the year.

Right now the Silver/Gold ratio is at 70.96-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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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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