Weekly Market Report 03/24/14

This Week’s Headlines:

Gold
Dennis Gartman turns Bullish on Gold
Palladium Soars on Russian-Export Worries
Numismatic Update
Silver
Recommended Investment Commitment and Diversification

GOLD

Last week was definitely not enjoyable for Gold investors. Gold was down four of the five trading days, and dropped $43 per ounce (3.12%), closing the week at $1,336 per ounce. Gold is still up $14.40 for the month and $134.10 from the start of this year. Much of the credit for last week’s decline in the Gold price was due to Federal Reserve Chairman Janet Yellen’s press conference. Prior to the press conference Gold had reached $1,392 per ounce; after Yellen’s statement Gold dropped to $1,320 per ounce before bargain buyers began to appear.

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Dennis Gartman turns Bullish on Gold

CNBC’s Commodity Analyst, Dennis Gartman turned bullish on Gold just over a month ago; prior to that he’d been bearish in 2012 and non-committal from the start of the current year. He was quoted at the time as saying “I’ve quietly turned bullish on Gold for a few reasons. Firstly, beginning five and six weeks ago we started to see a lot of the mining companies— even the largest Gold mining companies— begin to curtail production. That’s always a sign of an end of a bear market. When senior management at the largest Gold mining firms throw their hands up in dismay and begin curtailing production, usually within weeks the lows are going to be found. Decision by committee is always that way. It’s slow; it takes time; and it’s always late.”

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Palladium Soars on Russian-Export Worries

President Barack Obama ordered a second round of sanctions last Thursday against Russian officials and a bank, raising the stakes in the confrontation over Russia’s annexation of Ukraine’s Crimea region. Investors fear that Russia may strike back by reducing exports of some of its commodities. Russia is the world’s biggest supplier of Palladium, a key component of exhaust filters that keep cars running cleanly. Read the complete story at http://www.mintstategold.com/investor-education/palladium

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Numismatic Update

Last Thursday March 20th I flew up to San Francisco to attend the Heritage Auction Gallery’s sale of the U.S. Gold Collection owned by Donald E. Bently. The proceeds will go to help his foundation (the main purpose to support animal rights issues). The Bently foundation auction primarily consisted of early American rare Gold coins. One of the true rarities in the collection was a 1927-D $20 Gold Saint Gaudens, graded and certified by PCGS at MS63. This is one of the rarest Saint Gaudens in the collection, and I am proud to say that I was successful in purchasing this rarity for only $1,292,500.

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SILVER

Last week was truly ugly for Silver investors, with Silver dropping five consecutive trading days. Silver tested the $20 per ounce support level on Thursday and held, then ended the week at $20.31 per ounce. For the week, Silver dropped $1.10 (5.42%), ending at the lowest price since February 11th. Silver will probably stay in the $20 to $22 per ounce area until it re-establishes a base for the next leg higher. With a larger percentage drop in Silver last week (compared to Gold) the Silver to Gold ratio continues to move higher, now at an amazing 65.78 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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