Weekly Market Report 5/4/15

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

China Gold Reserves to Be Revealed After 6 Years of Secrecy

Putin’s Insatiable Appetite for Gold Fueled by These 3 Things

Russia resumes Gold stockpiling as rouble crisis eases

This Week’s Headlines:

Gold
Silver
Recommended Investment Commitment and Diversification

GOLD

Last Friday Gold closed at $1,174.50, down $0.50 for the week, but during the month of April Gold was virtually unchanged. Last week we saw a $39 rally on Monday and Tuesday, followed by a $39 decline on Wednesday, Thursday, and Friday. The rally was caused by weak growth in the GDP report, which showed only a .02% increase, far less than what was projected. The GDP is a primary indicator for the Federal Reserve when determining the direction of interest rates. Wednesday’s decline resulted from another Fed indicator, the U.S. Labor Department’s jobless report, which dropped by 34,000 jobs in the past week. I continue to believe that any interest rate increase by the Federal Reserve will not happen until 2016.

For the entire month of April Gold traded between $1,174.10 and $1,224.50 per ounce. The trading volume was average, with only one day of the CME exchange volume reaching over 200,000 hundred-ounce June Gold contracts. Global demand for physical Gold investment products soared in Russia, China, and India during April.

Since the beginning of the year Gold has rallied above the important $1,200 per ounce resistance/support level nine times. Each time Gold rallied, the bears sold or shorted Gold on the world’s commodity market exchanges, driving the price back below $1,200 and even reaching a low of $1,141 per ounce on March 17, 2015. Since Sept 6, 2011 (when Gold reached an all-time high of $1,920.80 per ounce) Gold has continued to decline, in search of a support level. It is clear to me that this year’s market action indicates this is Gold’s bottom, and that after this price consolidation Gold is headed much higher.

This morning the buyers came back as Gold moved back above the $1,180 resistance level, reaching a high of $1,193 during today’s trading.

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SILVER

The price of Silver did a lot better than the price of Gold last week. Silver closed on Friday at $16.13, up $0.50 per ounce for the week. In April, Silver moved above and below the key $16.00 per ounce support/resistance level on better than average volume. Last week, Silver closed above $16.00 all five trading days. Last week’s Silver price move caused the Silver/Gold ratio to move from a record high of 75.15-to-1, to 72.79-to-1.

This morning the Silver price rallied sharply, reaching a high of $16.77 (over 3%) on excellent volume. Remaining above the key $16 resistance level is short-term very bullish for Silver.

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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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