Weekly Market Report 04/07/14

This Week’s Headlines:

Gold
Estimates of Chinese Gold demand Growing
The April 2014 CoinStats is Now Available
Silver
Recommended Investment Commitment and Diversification

GOLD

Gold spent last week trading between $1,279 and $1,307 per ounce while looking for a direction. On Friday, some fresh Asian Gold buying appeared taking the price to above the key $1,300 resistance level. By the time that it started trading in the U.S., Gold had closed the week at $1,303.50 per ounce, up $9.70 for the week. On the bullish side of the technical signals, Gold has successfully retracted 50% of its 2014 rally and held. I cannot emphasize enough how important it is that Gold remain above the important $1,300 per ounce support level this coming week.

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Estimates of Chinese Gold demand Growing

Estimates of Gold consumption by China have just been revised upward again. Analysis of the details discovered in historic information contained in the context of China’s Gold strategy has allowed us for the first time to make reasonable estimates of vaulted Gold, comprised of Gold accounts in commercial banks, mine output, and scrap. There is also compelling evidence that mine output and scrap are being accumulated by the government in its own vaults, and not being delivered to satisfy public demand. Read the complete story by Alasdair Macleod at www.mintstategold.com/investor-education/chinesedemand

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The April 2014 CoinStats is Now Available

Our numismatic CoinStats report is the best investment tool for rare coin investors. CoinStats is an in-depth statistical analysis of popular rare coin series that allows you to identify the best values in certified rare coins. I am proud to offer this unique and informative tool exclusively to our clients. The April 2014 CoinStats update is now available for $20 Gold Saint Gaudens, $20 Gold Liberties, Morgan & Peace Silver Dollars, and the Walking Liberty Half Dollar series.

The CoinStats Report provides a list of my recommended certified U.S. Gold and Silver coins which are found listed on the Best Value page. These are PCGS/NGC Certified MS63 or higher Gold and Silver U.S. rare coins, dated prior to 1936, that have a proven track record of appreciation and also offer excellent liquidity. To receive the latest CoinStats analysis, just insert CoinStats in the subject line and email me which of the five series you would like to see.

Also for 2014, I am happy to announce that I have increased the CoinStats analysis by adding a new column that shows the increase in the PCGS/NGC population for over the past five years. Investors realize that the PCGS/NGC population does increase, but comparing the percentage of that increase is an important component in the selection of undervalued Gold and Silver rare coins.

What is surprising? Some of the five year population results in the CoinStats report show that some coins have actually changed over that period. How could this happen? There are a number of legitimate reasons that a PCGS and/or NGC certified coin could have a lower population in a five year period.

1. The coin could have been cracked out of its holder and re-submitted, but the owners never sent in the old certificate to the grading service so it could be deducted.
2. The coin could have been upgraded or crossed and the owner never sent in the certificate.
3. Because the new PCGS/NGC Plus grades are not yet incorporated into the CoinStats numbers, the coin may now have a Plus grade. (Plus grades will be added to CoinStats when the quantities increase)

Because I believe that CoinStats is one of the best tools for rare coin collectors and investors to recognize great value, I will continue to look for ways to provide more important information. Your input on CoinStats is always appreciated.

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SILVER

Silver continues to fight to stay above the $20 per ounce major support level. Last week Silver traded between $19.60 on the low and $20.23 on the high, closing the week at $19.94, up $0.16 per ounce. For the past two weeks Silver has reached the $19.60 price level five times and each time substantial buying has appeared. At some point this month, I believe that Silver will break out of its recent tight trading range -- my only hope is that it will be above $20 per ounce. However, any break below $19.50 could easily see a drop to $18.70, which was the Dec. 31, 2013 low.

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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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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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