Weekly Market Report 04/23/12

This week’s Market Report provides you with an update on the precious metal markets and the CSNS rare coin convention. And, the newest issue of CoinStats is now available for $20 Gold and U.S. Silver Dollars. CoinStats is an in-depth statistical analysis of popular rare coin series which allows investors to identify the best values in certified rare coins.

GOLD

It was an interesting five days in gold trading last week.  Although gold closed at $1642.00 per ounce, down $17.40 per ounce, the low to high closings for all five days of the week were within $10 per ounce.  This was the least amount of volatility we had seen in months, and I regard this low volatility as the quiet before the pending storm.  For the past month gold has been trading with support at $1,613 per ounce, with resistance at $1,696 per ounce.  Now, I believe that we should see the direction of the short term price of Gold very soon (especially if this coming week’s FOMC meeting stirs up the markets) and very dramatically if there are big news headlines.

Market analysts see the unexpected lowering of interest rates in India, caused by economic concerns, to be very bullish for Gold demand and prices. Analysts also project an 8% increase in gold demand in India in 2012.  These projections could increase based on demand seen for gold during the upcoming Akshaya Tritiya Festival on April 24th in India. In addition to this, China’s gold jewelry market is expected to grow by 35% this year.

An interesting article in last Monday’s Wall Street Journal about gold gave some bullish comments such as: “Bullion bulls still see potential gains as the world works through its problems, including Europe’s debt woes and the Fed’s bloated balance sheet. Central banks also have become big net buyers of gold, with the official sector absorbing 455 metric tons last year, more than at any point since the mid-1960’s.”  “Gold could top $1,900 this year, although the pace of gains is expected to be slow.”

SILVER

Last week Silver showed more strength than Gold, up $0.26 per ounce for the last five trading days, closing the week at $31.65 per ounce. Silver also showed light volatility, as the price range for the daily closing prices was only $0.40 per ounce, ranging from $31.37 to $31.77 per ounce.  This provides additional confirmation that we are seeing the quiet before the storm, and a major breakout is on the way.

An April 19, 2012 press release from the Silver Institute provided the following information: Strong global silver investment in 2011 paved the way to a record annual average silver price of $35.12 per ounce in a year marked by steep price volatility. 2011 showed a 3% decrease in silver supplies of 34 million ounces to 1,040 million ounces, while an increase in coin and metal investor demand of 18.8 million ounces.

For the complete report from The Silver Institute visit:
http://www.silverinstitute.org/site/2012/04/19/silvers-2011-annual-average-price-posts-all-time-record-at-35-12/

RARE COIN UPDATE

I just returned from the Central States Numismatic Society (CSNS) coin show. The CSNS numismatic coin convention is one of the top five shows of the year, with thousands of dealers, collectors, and investors in attendance. This year the CSNS decided to move the show from Rosemont, IL (the area around O’Hare airport) to the Renaissance Schaumburg Hotel and Convention Center in Schaumburg, IL.  Personally, I feel that this was a mistake; although the facilities were very nice, public attendance was down substantially.    

Even with smaller public attendance this convention continued to show that the rare coin market is roaring back. Dealer demand for new high quality material has never been stronger, with most dealers reporting low inventory levels.  Prices for low population MS65 and above PCGS/NGC certified U.S. rare coins at the public auction were 10-20% higher on similar rarities that were auctioned 3-6 months ago. I focused my attention on purchasing CoinStats recommended U.S. Gold and Silver coins with limited success. A combination of lack of quality rarities on the bourse floor and many aggressive buyers made it a seller’s market, and they priced their limited quantities of rarities accordingly. 

The new April 2012 CoinStats is now available

My numismatic CoinStats report is the best investment tool for rare coin investors. CoinStats is an in-depth statistical analysis of popular rare coin series which allows you to identify the best values in certified rare coins. I am proud to offer this unique and informative tool exclusively for our clients. The April 2012 CoinStats update is now available for $20 Gold Saint Gaudens, $20 Gold Liberties, and the Morgan & Peace Silver Dollar series.

The CoinStats Report provides a list of my recommended certified US gold and silver coins which are listed on the best value page.  These are not the overly hyped modern issue bullion coins or low grade circulated coins, they 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.

For the latest CoinStats analysis, just put CoinStats in the subject line and email me which series you would like to see.

Recommended investment commitment and diversification:

Precious Metal commitment: Minimum of 35% of investment capital

Diversification:  Gold 50%, Silver 40%, 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.