Weekly Market Report 05/12/14

This Week’s Headlines:

Gold
Chinese Consumer Inflation at 18 Month Low
Silver
Silver Institute April 2014 Report
Recommended Investment Commitment and Diversification

GOLD

Gold rallied back above the key $1,300 per ounce support level on May 2nd and stayed above for the next two trading days, until Wednesday May 7th. On that day Russian President Putin stated he would move his troops back from the eastern Ukraine border and discuss a settlement to the crisis with ECU & US leadership. Considering Gold rallied $20 per ounce on May 2nd when the Ukrainian military activity increased, it wasn’t surprising to have a $20 decline when hostilities calmed down.

During last week, Gold stayed within its recent $1,280 to $1,315 per ounce trading range. Precious metal professionals and traders are watching Ukrainian and Russian military movements, or any negotiations for an indication of price directions. A break below the May 2nd low of $1,272 per ounce would be very negative and could drive Gold down to $1,260. A move above the $1,315 per ounce level would drive the short selling to cover the sales and take the price back to the $1,350 per ounce level.

Gold closed last Friday at $1,287.60, down $15.30 for the week and down $8.30 since the beginning of May.

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Chinese Consumer Inflation at 18 Month Low

April Chinese consumer prices rose 1.8% vs. a year earlier, down from 2.4% in March, with the smallest gain in 18 months amid slower economic growth. Factory-level prices fell 2% vs. a year earlier, for the 26th straight decline. The price data spurred calls for more aggressive gov’t efforts to help the world’s No. 2 economy. Beijing has been wary of big stimulus measures after a 2008 government spending boom resulted in many bad investments and debts for cities and provinces. Should China decide to announce a major economic stimulus package it would be very bullish for the precious metal price.

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SILVER

After making a new 2014 low of $18.69 per ounce May 1, Silver closed above $19 per ounce every trading day last week, ending the week at $19.12, down $0.43 per ounce for the week. Silver continues to be weaker the Gold as physical demand for Silver investment product has slowed down. The Silver/Gold ratio has hit a new 2014 high of 67.34 to one.

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Silver Institute April 2014 Report

Silver Institute provides an updated look at Silver jewelry demand and many exciting usages for Silver in Medical, Health and Purification products and services. To read the complete report click on the following link http://www.mintstategold.com/investor-education/silvernews/

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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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