Weekly Market Report 04/21/14

This Week’s Headlines:

Gold
Ukrainian Crisis Heats Up but Gold Doesn’t Move Higher
Silver
Recommended Investment Commitment and Diversification

GOLD

Gold had a high/low trading range of $47 per ounce last week ($1,331.40 to $1,284.40). It closed the week’s trading on Thursday at $1,293.90 per ounce (Friday the market was closed for the Good Friday holiday). Gold dropped below the key $1,300 per ounce level, losing $25 per ounce during last week’s holiday shortened trading. Today, due to the sharp outflows from the world’s biggest bullion-backed exchange-traded fund (ETF) and a stronger dollar, Gold could not rally back above $1,300 per ounce. The Gold stockpile at GLD dropped to 795.14 tonnes, the lowest level since January. After an overnight attempt to rally, Gold has traded down, reaching a low of $1,280 per ounce.

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Ukrainian Crisis Heats Up but Gold Doesn’t Move Higher

The crisis in Eastern Ukraine heated up over the weekend with pro-Russian insurgents occupying Official buildings, while Ukrainian Security forces became more aggressive. An armed clash early Sunday near the city of Slovyansk is the latest clash between pro-Russian and Ukrainian forces after an international agreement was reached last week in Geneva. A worsening of the Ukrainian crisis is considered to be bullish for Gold and the fact that Gold is lower today is surprising.

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SILVER

The price of Silver traded from $19.22 to $20.14 per ounce all of last week. It is clear that Silver’s important $20 per ounce support level has not been able to hold. Professional traders continue to sell Silver (short sales) when it approaches $20 and buy it in the $19.20 to $19.50 per ounce area. Any prolonged break below $19.20 per ounce could easily cause Silver to 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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