Weekly Market Report 05/29/12

This Market Report provides you with an update on the precious metal markets. This week I  discuss last week’s Gold/Silver trading, and my belief that now is The Right Time to Buy Gold, due to the extraordinary supply/demand fundamentals.

GOLD

Last week Gold tested the $1,520-$1,530 per ounce price support level for the fourth time since September of last year. Like the three previous times, Gold quickly rallied back above the $1,550 price area on high volume. Gold was down $23 per ounce last week, closing at $1,568.90 per ounce on Friday.  The $1,600 per ounce price continues to be the resistance level that will take Gold out of its current $1,525 - $1,580 trading range, and bring confidence back to the professional traders signaling that the bullish trend is back.  

As we celebrate Memorial Day, I looked back on how Gold preformed last summer between Memorial Day and Labor Day. Last Memorial Day, Gold was trading at $1,537 per ounce and by the end of summer 2011 (Labor Day) it was up $339 (22%) to $1,876 per ounce. 

I have written an article titled “The Right Time to Buy Gold” and provide the link to this article.  The article provides information on the extraordinary Supply/Demand fundamentals, and discusses the current bullish trends and my outlook for the near future.  Here is a link to the complete article: http://www.mintstategold.com/investor-education/the_right_time_to_buy_gold/

Last week the minutes from the Federal Reserve’s April 26-27 meeting were released.  The Fed indicated that a third round of quantitative easing (QE3) may be employed if needed – specifically, if sovereign debt and the European problems drag the US into their quagmire. The Fed minutes stated, “Several members indicated that additional monetary policy accommodation could be necessary if the economic recovery lost momentum or the downside risks to the forecast became great enough.”

Gold, typically a safe-haven investment, has been moving in tandem with riskier assets as the euro zone debt problem grinds on. Senior officials have advised European leaders to prepare contingency plans in case Greece quits the single currency, even though the EU urged Athens to stay the course on austerity.

Guess Who’s Buying Gold Again?
Billionaire investor, George Soros, significantly increased his shares in the SPDR Gold Trust in the first quarter. Soros Fund Management nearly quadrupled its investment in the largest exchange-traded Gold Fund (GLD) to 319,550 shares ($49 Million), compared to the 85,450 shares ($13 Million) at the end of the fourth quarter.

SILVER

Last week Silver reached the low price of $27.08 per ounce on Wednesday, before significant demand appeared, driving the closing price back to $28.39 per ounce by Friday, a net loss for the week of $0.33 per ounce. Silver’s price action mirrored Gold’s decline, with the heaviest volume on Wednesday. All the precious metals (including Platinum & Palladium) are reacting to the European debt crisis and the possibility of Greece exiting the euro zone nations. 

PLATINUM

Last week Gold increased $23 per ounce, and we saw Platinum drop $25.60, closing the week at only $1,423 per ounce. Platinum’s discount to the price of Gold is currently at an unbelievable  $135 per ounce. This provides you with an opportunity to purchase Platinum at almost a 9% discount to Gold. A discount of this size rarely happens, so I am maintaining my increased recommended investment diversification for Platinum of 15% of your precious metal commitment.  The Canadian 1oz Platinum Maple Leafs are the most active Platinum trading vehicle, and because it’s our #1 selling Platinum bullion item we can offer them at only 5.75% over spot.  For a current quote on this item please visit: http://www.mintstategold.com/platinum-1/bullion-coins-and-bars/platinum-canadian-maple-leafs.html

Recommended investment commitment and diversification:

Precious Metal commitment: Minimum of 35% of investment capital

Diversification:  Gold 50%, Silver 35%, Platinum & Palladium 15%

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 to 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.