Weekly Market Report 05/19/14

This Week’s Headlines:

Gold
John Paulson Holds On to his Major Gold Investment
Silver
Recommended Investment Commitment and Diversification

GOLD

Gold rallied above the key $1,300 per ounce level last Wednesday based on renewed violence between Ukrainian soldiers and Pro-Russian separatists and weak U.S. economic news from the April Producer Price Indicator. Then, on Thursday, weak unemployment numbers combined with a better than expected Consumer Price Index drove Gold down $12 per ounce. Last week Gold had a $32 price range ($1,277 to $1,309 per ounce), closing the week at $1,293, up $6 per ounce.

The Gold price is at a critical level right now. It has been trading above and below the important $1,300 per ounce level for the past two months. In that period of time Gold has traded as high as $1,331 and as low as $1,268 per ounce. That price range is considered the current Gold trading range, and I would expect to see a breakout of that range very soon. The only question is which direction Gold will go. Although I feel that Gold has a 30% chance of testing the lows within the next month, I also feel that the long term direction for Gold is much higher than the current levels. Based on the current supply/demand numbers, the world’s geo-political problems and Gold’s major fundamentals, I can easily see Gold up 15% during the balance of 2014.

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John Paulson Holds On to his Major Gold Investment

Billionaire hedge fund manager John Paulson stayed with his holdings in the biggest exchange-traded product backed by Gold as prices rebounded on the escalating tension between Ukraine and Russia. . . For the complete story click on http://www.mintstategold.com/investor-education/cat/news/post/paulsongold/

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SILVER

Silver continues to be stagnant in the $19 to $20 per ounce price range, thereby making many professional commodity traders wealthy. Their current trading strategy has been to short Silver when it approaches $20 and to cover those sales when it trades below $19.40. Last week Silver closed at $19.32 per ounce, up $0.21 for the week. The Silver/Gold ratio has hit a new 2014 high of 66.91 to one.

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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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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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