Weekly Market Report 3/9/15

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

Silver Institute Feb 2015 report

Gold Is At A Crossroads: 2 Trendlines Are About To Intersect

This Week’s Headlines:

Gold
Silver
Recommended Investment Commitment and Diversification

GOLD

Last Friday, after the U.S. Department of Labor released the February 2015 jobs report, the U.S. Dollar rallied sharply and the U.S. stock and precious metal markets declined dramatically. The U.S. Labor force added 295,000 new jobs in February. This is much higher than expected and a strong sign that the labor market has improved and the economy is recovering. The U.S. unemployment rate fell to 5.5% from 5.7% -- the lowest since May 2008. This news was bullish for the U.S. Dollar, causing the Dollar to reach 1.08 versus the Euro. However, the news negatively affected the stock markets and precious metal prices. The Dow Jones Industrial dropped 278 points and Gold quickly dropped $33, to $1,163 per ounce.

Gold closed on Friday at $1,164.30, the lowest price for 2015, on the highest CME trading volume of the week. Gold is now down $19 (1.6%) for 2015. With Gold breaking below the $1,190 per ounce support level, the next support level for Gold is the 2014 low of $1,130.40 per ounce. That low was hit on November 7, 2014 and was immediately followed by heavy buying, causing the price of Gold to quickly rally, reaching $1,218 by December 1, 2014.

This morning Gold rallied in Asia, reaching a high of $1,175.80 per ounce before seeing any resistance. Gold has now established a new trading range between $1,150 and $1,175 as physical demand in Asian markets increases dramatically.

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SILVER

Silver also got hammered on Friday’s U.S. labor force news, quickly dropping to last week’s low of $15.75 per ounce. Surprisingly, last Friday’s CME trading volume of 5,000 Silver contracts was the highest for the week. Breaking down below the key $16.00 per ounce support level was very negative for Silver. On Friday, Silver closed at $15.80 per ounce, up $0.21 since the beginning of 2015. The next support level is $15 per ounce, but Silver has shown sizeable demand around the $15.50 per ounce level.

Demand for physical Silver products continues to grow globally as discussed in the February 2015 Silver Institute Report. Read the report at: http://www.mintstategold.com/investor-education/cat/news/post/silver_institute_february_2015_report/

Right now the Silver/Gold ratio is at 73.66-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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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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