Weekly Market Report 4/20/15

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

China Gold Reserves Rise To Threatening Level

Silver and Gold Will Thrive Beyond Debt Growth

This Week’s Headlines:

Gold
Silver
Going to Schaumburg, IL for the Central States Coin Convention
Recommended Investment Commitment and Diversification

GOLD

Last week Gold tested the $1,200 level for the sixth time this year, and quickly rallied back. Gold closed at $1,203.10 per ounce, down $1.50 for the week, and up $19.90 for the month.

Gold remains stuck in its recent $1,180 to $1,220 per ounce trading range. When Gold moves back above the key $1,200 support/resistance level, we see physical demand pick up. Every day last week when Gold dipped below $1,200, I saw speculative and perhaps producer selling emerge, then came increasing demand that drove the price back above $1,200 again and again.

The headline story for last week was the big sell-off in equities, which is being fueled by concerns over the Greek debt situation (Will it remain in the EU?) and regulatory concerns in the Chinese market which will bring greater regulatory oversight.

On the positive side for Gold, last week crude oil made a new high for 2015. Interest rates, as witnessed by the 10-year bond, remain very low and the USD backed off late last week.

Last week the Consumer Price Index, a leading economic indicator, was reported up .02% for the month of March 2015. This is positive for Gold, because the Federal Reserve is unlikely to increase interest rates with moderate or little growth in the economy.

This morning Gold broke down below the $1,200 resistance level again as the U.S. stock market recoups much of Friday’s big loss. A speech by New York Fed President Dudley, in which he reiterated his stance that he hopes the FOMC will begin raising rates later this year, also put pressure on the precious metal prices.

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SILVER

Silver closed last Friday at $16.23 per ounce, down $0.15 for the week, and $0.35 lower for the month. Silver has recently developed a $17.50 to $16.00 high/low trading range. Last week Silver showed weakness, ending the week with a lower price in the face of a stronger Gold market.

Right now the Silver/Gold ratio is at 74.13-to-1.

This morning the Silver price reached a low of $15.85 per ounce, breaking the $16 resistance level, on active trading volume. Buyers came in and the price quickly rallied $0.10 per ounce.

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Going to Schaumburg, IL for the Central States Coin Convention

Wednesday, I head to Schaumburg, Illinois for the Central States Numismatic Society’s (CSNS) rare coin convention. CSNS is a major rare coin show. This rare coin convention will be well attended by thousands of rare coin collectors, investors, and dealers. I believe that demand for high quality PCGS/NGC certified rare coins should be very strong. Many dealers are focusing their attention on low population Gold and Silver rarities to fill their clients want lists. I will be trying to locate many of the rare coins on my clients want lists. If you have not updated your want list recently, please email me by tomorrow.

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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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