Weekly Market Report 02/24/14

This Week’s Headlines:

Gold
Why Did the US Only Give Germany Back 5 Tonnes of Gold
Gold Smuggling Doubles in India Last Year
Silver
Major Rare Coin Convention in Atlanta, Georgia
My 2014 Forty-four Page Gold Booklet has been mailed
Recommended Investment Commitment and Diversification

GOLD

The Gold bears are on the run as Gold continues to move higher, up over 10% from the beginning of 2014. Last Friday Gold closed at $1,323.70 per ounce, up $5.10 for the week, up $84 for the month of February and up $121.80 from the beginning of the year. Trading volume continues to grow every week while the global physical demand for Gold investment products is at a record pace.

Not since before Sept 6, 2011 (when Gold reached $1,920 per ounce) has the Gold market looked so bullish. Yes, the bears are on the run and professional commodity floor traders are beginning to have a bullish mindset. What will it take to officially call this Gold move the end of the bear market? The fundamentals for Gold ownership have never looked better. However, on the technical side, I need to see Gold firmly breakout above $1,350 per ounce. I think that this will happen within the next few weeks after some strong economic news gets released.

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Why Did the US Only Give Germany Back 5 Tonnes of Gold

On January 16, 2013 Germany’s central bank, the Bundesbank, asked the US Federal Reserve ship 300 tonnes of the 1,528 tonnes of Gold that it was holding in their Manhattan vaults back to Germany. The Federal Reserve told the Bundesbank that they wouldn’t be able to ship back the 300 tonnes of Gold until 2020. Fast forward a year and the Bundesbank announced that is has received a mere 5 tonnes of Gold from the US Federal Reserve. The big question is why? For the complete story see http://www.mintstategold.com/investor-education/cat/news/post/germanygold/

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Gold Smuggling Doubles in India Last Year

The amount of smuggled Gold doubled in India during 2013 because of the import restrictions put into place to contain India’s current account gap. According to estimates made by the global precious metals consultancy, GFMS, 150 to 200 tonnes of Gold was smuggled in 2013 from Dubai, Singapore, and land routes from Bangladesh, Pakistan and Nepal. The agency also estimated that 112 tonnes had been smuggled in 2012.

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SILVER

It was another great week for Silver as it closed at $21.78 per ounce last Friday, up $0.36 for the week, and up $2.66 (13.9%) from the start of February. Last week, Silver tested the $22 per ounce resistance level three times and short term profit taking caused it to sell-off. The volume of Silver contracts traded on the world’s commodity markets continues to increase with fresh new buyers. In my Feb. 18th Weekly Market Report, I called for at least one week of consolidation above $21 per ounce and that happened last week.

The Silver-Gold ratio has now dropped to 60.77 to 1.

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Major Rare Coin Convention in Atlanta, Georgia

Tomorrow I am flying to Atlanta for the American Numismatic Association’s National Money Show. This convention is a major event for the rare coin community, with thousands of dealers, investors, and collectors attending. In addition to having a trading floor with over 300 rare coin dealers, there will also be a major rare coin auction. I am asking my rare coin clients to email me their updated want list. I recommend emailing me ASAP. I’ll be at Table 920 on the bourse convention floor should you be in the area and want to stop by to say hello.

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My 2014 Forty-four Page Gold Booklet has been mailed

GOLD: REAL MONEY

Your Ultimate Protection
Against Inflation and Deflation

After six months of research and three months of reviewing, we mailed out two copies of our Gold Booklet to our clients. I believe that this is one of my best research and analysis of the precious metal markets. I want to publicly thank my son David and Rick Rhoads 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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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 40% of investment capital

Diversification:  Gold 45%, Silver 50%, 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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