Weekly Market Report 2/23/15

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

Greeks are Running Towards Gold as Retail Demand Increases 123%

This Week’s Headlines:

Gold
Silver
Recommended Investment Commitment and Diversification

GOLD

Last week there were only four trading days due to the President’s Day holiday. Gold closed between $1,200.20 and $1,208.60 per ounce all those four days. Although Gold reached a low of $1,197 per ounce during trading on two of those four days, it never closed below the important $1,200 major support level. Gold closed last Friday at $1,204.90 per ounce, down $22.20 for the week with excellent trading volume.

The Jan. 27-28 Federal Open Market Committee meeting report was released last week. The report showed that many Fed Officials were inclined to maintain zero percent rates a while longer. The news caused Gold to rally the next morning in Asian trading, with Gold reaching a high of $1,223 per ounce.

Last Wednesday the U.S. Producer Price Index was released. It showed the largest January drop in more than five years as the cost of energy and a range of other goods tumbled. This hinted at a disinflationary trend that could delay any interest rate increase.

One of the negative factors for Gold last week was the report from the Russian Central Bank showing that on February 1, 2015 their Gold holdings were unchanged at 1,207 metric tons. That news confirmed that Russia did not add to its Gold reserves in January, after being an aggressive buyer for the past 10 months.

Based on the trading volumes for Gold around the globe, I think we will learn in March that a sizeable number of the world’s central banks added Gold to their reserves. Many of the financial ministers that manage central bank purchases are price sensitive and become aggressive buyers when Gold reaches support levels like $1,200 per ounce.

This morning the $1,200 per ounce support level was tested again, with Gold dropping to $1,191 per ounce before sizeable buying appeared driving the price back up to $1,210.

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SILVER

Last week Silver declined at a more significant rate than Gold. While Gold dropped $22.20 (1.8%), the price of Silver dropped $1.02 (5.9%) closing the week at $16.27 per ounce. $16 per ounce has shown to be a major support level for Silver, while $18 per ounce is the short term resistance level.

Silver reached a low of $16.16 per ounce last week. It is important that Silver holds the $16 per ounce support level, as the traders are concerned it could retest its recent low of $15.58 per ounce.

Right now the Silver/Gold ratio is at 74.04-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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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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