Weekly Market Report 3/30/15

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

It looks like Gold has bottomed
BofA Analyst: Gold Going To $1,300 In May
How The Gold Price Will Defy Skeptics and Stage a Huge Comeback

This Week’s Headlines:

Gold
Silver
Baltimore’s Rare Coin Convention shows excellent demand
Recommended Investment Commitment and Diversification

GOLD

After reaching a new 2015 low of $1,141 on March 17, Gold rallied back above the $1,200 per ounce resistance/support level last Thursday. After the price breakout, Gold reached a high of $1,220 before seeing short term profit taking.

During trading last Thursday and Friday, Gold stayed between $1,191 and $1,220 per ounce. I would like to see Gold consolidate recent gains and trade in the $1,180 to $1,220 range for the next week or so, before moving higher. Gold closed last Friday at $1,199.80, up $15 for the week.

The fundamentals for a higher Gold price are looking good: Crude Oil has moved higher, with minor setbacks due to the heightened military activity in the Middle East; and the U.S. Dollar has been showing weakness versus the Euro, as European Stocks are gaining popularity.

This morning, with a stronger U.S. Dollar and a calmer tone in the Middle East, Gold is down while building its base between the $1,180 and $1,200 per ounce price level.

Apple to Buy 746 Tonnes of Gold in 2015?
I keep seeing headlines about Apple buying a large amount of Gold to make its Gold Apple Watch, but the numbers don’t make sense. 746 metric tonnes is almost 24 million troy ounces of .999 fine Gold. If each Apple Gold watch contains 2 ounces of 18kt Gold, they would need to make and sell 16 million Gold watches. At approximately $10,000 a Gold watch, that would be gross sales of $160 Billion. That isn’t going to happen in 2015.

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SILVER

After Silver increased $1.39 two weeks ago, last week Silver continued its rally, closing at $17.07 per ounce, up an additional $0.18 on excellent trading volume. Silver reached a high of $17.41 last Thursday on professional short covering and fresh demand. For now Silver needs to consolidate in a new trading range between $16.50 and $17.20 per ounce for at least a week.

This morning, Silver reached a low of $16.62 before seeing sizeable demand.

Right now the Silver/Gold ratio is at 70.39-to-1

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Baltimore’s Rare Coin Convention shows excellent demand

Last week I was in Baltimore for the Whitman rare coin convention. The Whitman Expo is a major rare coin show. Several thousand rare coin collectors, investors, and dealers attended this year’s show. The show confirmed strong demand for high quality PCGS/NGC certified rare coins. Many dealers were focusing their attention on low population Gold and Silver rarities to fill their clients want lists.

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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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