Weekly Market Report 03/03/14

This Week’s Headlines:

Gold
China continues to show an appetite for Gold
Major Rare Coin Convention in Atlanta, Georgia
The Saddle Ridge Gold coin Hoard is released
Silver
Recommended Investment Commitment and Diversification

GOLD

For the second month in a row, Gold has closed higher. Gold closed at $1,321.60 per ounce on February 28th, up $81.70 per ounce (6.5%) for the month, and up $119.80 per ounce since the start of 2014. Last week Gold made two attempts at breaking above the $1,350 per ounce resistance level. Also, last week Gold attempted to break down below the $1,320 per ounce support level twice. Gold consolidating in a tight $1,320 to $1,350 price range after the recent increase is very bullish for this coming week. I believe that Gold will make another attempt this week, hopefully successfully, and break through the $1,350 per ounce resistance level.

Gold gained around 2% today as escalating tensions between Ukraine and Russia bolstered demand for precious metals worldwide, while driving down equities and bonds.

The SPDR Gold Trust (Symbol GLD), the biggest Gold ETF, is set to get its first monthly inflow since December 2012, according to the Reuters report on Thursday. This ETF has added 10.5 tons to its reserves so far in February, reaching 803.70 metric tonnes. GLD is set to get its first monthly increase into its reserves in more than a year.

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China continues to show an appetite for Gold

Hong Kong’s net Gold exports to China in January were 89.745 tonnes. It is on track to export another 1,000 metric tonnes to China this year. Chinese Gold buying continues to show heavy domestic demand for physical Gold investment products.

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Major Rare Coin Convention in Atlanta, Georgia

I just returned from Atlanta where I attended 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 a trading floor with over 300 rare coin dealers, there was also a very successful major rare coin auction.

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The Saddle Ridge Gold coin Hoard is released

During the Atlanta coin convention, Don Kagin put on display many of the Gold rarities from the Saddle Ridge Gold coin hoard. This is the $10 million Gold coin discovery that was in the news last week. These coins are mostly $20 Gold liberties that are dated from 1847 to 1894 and have been certified and graded by PCGS. Most of these coins will be sold on Amazon.com in May. The full story is available at http://www.latimes.com/local/la-me-0227-gold-coins-20140227,0,843659.story#axzz2urqaPWUv

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SILVER

Although Silver ended last week lower by $0.54 closing at $21.24 per ounce, it was up for the month. Silver has increased $2.12 (11.08%) for the month of February. Silver has spent the last two weeks building a support base between $21 and $22 per ounce. $22 per ounce is an important resistance level for Silver, and any firm break above that level would be very bullish for Silver long term.

The Silver-Gold ratio has increased to 62.22 to 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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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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