Weekly Market Report 05/27/14

This Week’s Headlines:

Gold
Silver
Rare Coin Market Update
Recommended Investment Commitment and Diversification

GOLD

For the past 60 days the Gold and Silver price has traded in a very tight range. Call it quiet, consolidation, or just plain unexciting, it has become increasingly difficult to write a Blog or Weekly Market Report about these markets. Gold has not had such a tight range for a two month period since the summer of 2007, when it was trading at under $700 per ounce. In the past two months, Gold has traded in only a $63 range on average volume. Now, we are going into the summer months when traditionally the precious metal markets have light volume and quiet trading. What this market needs is some supply/demand or geopolitical news that would breathe some excitement back into many of the commodity houses and professional traders.

Gold has held up well in the $1,300 per ounce area, considering that the World Gold Council recently disclosed that Chinese Gold demand fell 18% in the first quarter of 2014, as the world’s biggest Gold consumers bought fewer coins and bars. However, the Russian central bank purchased 900,000 ounces of Gold (worth $1.17 Billion) in April 2014.

The $1,300 per ounce support/resistance level continues to be the focus for many traders and analysts. Last week, Gold crossed the $1,300 level twice during trading, but couldn’t close above. Last Friday, Gold closed at $1,291.70, down $1.70 per ounce for the week and up $90 for 2014.

This morning, the Gold price is testing the May 5th low of $1,266.80 on the highest volume of the month. This could be the final clean out before the bullish trend continues if the Gold price can hold above the support level.

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SILVER

The Silver price continues to be boring trading in the $19 to $20 per ounce range, which makes watching paint dry look exciting. Last Friday, Silver closed at $19.41 per ounce, up $0.09 for the week and down $0.04 since the beginning of 2014. The volume of trading in the Asian, European and U.S. markets has been light, not a good sign for a rally.

The Silver/Gold ratio is now 66.52 to one.

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Rare Coin Market Update

While precious metal prices have been quiet during the past 2 months, the Gold and Silver rare coin market has been anything but. I just returned from PCGS’s Las Vegas Trade and Grade Show. This is primarily a trade show with about 30 of the largest numismatic companies in the U.S. Many of the dealers are reporting increased sales of investment quality PCGS/NGC certified U.S. Gold and Silver coins. Dealers are showing increasing sales combined with lower inventory levels which makes it very difficult to purchase coins to fill my client want lists. Many dealers are offering aggressive bid prices when a Gold or Silver rarity becomes available.

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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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