Weekly Market Report 6/3/13

This Week’s Headlines:

Gold
Regardless of What the Media Says, Soros is Bullish on Gold
India may import record 300-400 tonnes of Gold in Apr-June
Silver
Collectible Coin Protection Act
Recommended Investment Commitment and Diversification

GOLD

The good news is that Gold has increased in value over the past two weeks. The bad news is that Gold broke through the key $1,400 per ounce resistance level last Thursday, but couldn’t hold above that level last Friday. Trading volume and physical demand for Gold has continued to increase, while paper Gold holdings declined. During the past two weeks Gold has rallied above the $1,400 per ounce level three times and then fallen back. Will today, the fourth time Gold has rallied above $1,400 per ounce, be the charm? This is an important question since it would confirm that the recent price decline has been abated and Gold is ready to reinstate its bullish momentum. Last Friday Gold closed at $1,393 per ounce, up $6.40 per ounce for the week.

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Regardless of What the Media Says, Soros is Bullish on Gold

There has been a lot in the media recently about George Soros being bearish on Gold and selling his holdings. It is true that Mr. Soros has been selling his holdings in the SPDR Gold Trust ETF (Paper Gold - NYSE: GLD). The GLD position was lowered in the first quarter of 2013 to 530,000 shares from 600,000 shares. However, his latest SEC 13-F report shows that Soros’ Management Fund LLC has added Gold Mining Shares and 1.51 million call options on that index were initiated. Additionally, Soros also maintained a $32 million position in individual Gold mining stocks. For the complete article see http://www.mintstategold.com/investor-education/soros/".

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India may import record 300-400 tonnes of Gold in Apr-June

India’s Gold demand has increased dramatically due to the fall in Gold prices. India’s import of the yellow metal in the April-June period is expected to touch a record level at 300-400 tonnes, according to the World Gold Council (WGC). The WGC has reported the unprecedented levels of demand in the last quarter due to lower Gold prices which have led to the depletion of stocks in a number of key markets. Jewelry stores in China and India have run low or in some cases completely out of stock.

“In India, imports of Gold are headed towards record levels in Q2 of 2013. We anticipate 300-400 tonnes of imports in the second quarter, as much as a 200% year-on-year increase and almost half of total imports last year,” the WGC said in its market update for the second quarter of this year. India imported only 153 tonnes of Gold in the same period in the 2012 calendar year as demand was lower because of record prices at that time.

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SILVER

For the past twelve trading days Silver has closed between $22.19 - $22.69, an amazing fifty cent trading range. Silver has established a firm base and new support level for the next leg up. While we are seeing some resistance at the $23 per ounce level, we have long term support at $20.00. Silver continues to have weaker demand than Gold, with Gold up $6.40 per ounce last week, Silver was down $0.25 per ounce, closing the week at $22.24. Silver’s risk/reward still looks outstanding, especially with the Silver/Gold ratio at 62-to-1.

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Collectible Coin Protection Act

As chairman of the Gold and Silver communities’ Political Action Committee (Gold & Silver PAC), I am proud to share the introduction of HR 1849, the Collectible Coin Protection Act, into the House of Representatives on May 7, 2013. This Federal legislation amends and updates the Hobby Protection Act passed over 30 years ago. HR 1849 allows both law enforcement and civil action against manufacturers, importers, and sellers of counterfeit coins and bullion products, as well as providing enforcement against the unauthorized use of registered trademarks belonging to collectible certification services.

This legislation is non-partisan and has no financial effect on the budget; therefore I am asking my friends who have a relationship with their local congressman to contact them and request they be a co-sponsor of HR 1849. Please let me know of any positive replies.

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 40% of investment capital

Diversification:  Gold 55%, Silver 40%, 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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