Weekly Market Report 5/11/15

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

Is Russia Moving to a Gold-Backed Currency?

Key Components of Global Silver Demand Rose in 2014

This Week’s Headlines:

Gold
Silver
Recommended Investment Commitment and Diversification

GOLD

Last Friday Gold closed at $1,188.90 per ounce, up $14.40 for the week. The Gold closing price stayed in a narrow trading range all week, from $1182.20 on the low to $1,193.20 on the high. Last Tuesday the U.S. trade deficit for March 2015 was reported. The deficit exploded to $51.4 billion, a six-year high. This was much more than the $41.7 billion economists had expected. The deficit increased by 43.1%, the largest increase in 18 years. This will negatively affect the 2015 GDP, which caused Gold to reach the $1,199.30 per ounce level last Tuesday.

For the past twelve weeks Gold has primarily traded in the $1,180 to $1,220 per ounce trading range. During this same period of time, U.S. physical demand for Gold has declined, while the world’s marketplaces for Gold investment products has increased dramatically. This extraordinary demand is due in part to the strength of the U.S. Dollar versus the Euro, Yen, and other currencies, as well as the ongoing geo-political turmoil in the Middle East. Additionally, many of the World’s leading Central Banks have been buying tonnes of physical Gold to increase their countries’ Gold reserves, while lowering their holdings of U.S. paper dollars.

Chinese demand for physical Gold continued to grow last week due to the surprise cut in the one-year lending rate from the Chinese Central Bank, which continues to look for ways to stimulate a sluggish economy.

This morning Gold continues trading in its narrow range, from $1,179 on the low to $1,192 on the high for the day.

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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 $16.46, up $0.33 per ounce for the week. Last week, Silver closed above the $16.00 level all five trading days, for the second consecutive week. The Silver/Gold ratio moved to 72.21 to 1.

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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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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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