Weekly Market Report 06/16/14

This Week’s Headlines:

Gold
Silver
Recommended Investment Commitment and Diversification

GOLD

Every day last week Gold traded increasingly higher and closed above the previous day’s price. What’s more important is that Gold closed above the key $1,250 per ounce resistance level throughout the week. Friday, Gold ended the week at $1,274.10 per ounce, up $21.60 for the week. The important resistance level to watch for now is $1,300 per ounce.

The primary news that drove Gold higher last week was the civil war led by Sunni-militants, which is causing the violence in northern and eastern Iraq. The world’s energy markets are concerned that this could spread, resulting in the possibility of a disruption in oil supplies from the Middle East, and therefore, crude oil prices did move higher last week, reaching a nine-month high. Since Gold is the ultimate safe-haven asset during times of geopolitical unrest, the Iraqi situation is driving the price of Gold higher worldwide. A year ago it was Iran; a few months ago it was the Ukraine; now it is Iraq. The Gold price is likely to move higher as Iraq tensions escalate, possibly reaching the important $1,300 per ounce level this week.

Last week, the World Bank stated that they were cutting their annual world economic growth forecast to 2.8% from their last forecast of up to 3.2% in January. Analysts feel that this news is bullish for Gold, as it is more likely that the world’s major central banks will keep their easy-money policies for longer than originally anticipated.

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SILVER

The Silver price last week outperformed Gold on a percentage basis. While Gold was up $21.60 (1.72%), Silver increased $0.66 per ounce (3.38%), closing the week at $19.65 per ounce. Like Gold, Silver was up every trading day of last week. The same Iraqi violence I mentioned earlier was the primary issue that caused it to move higher. The trading volume wasn’t especially high, just a lack of sellers. Silver never tested the key $20 per ounce resistance level last week, but it should happen this week if the Iraqi violence escalates.

The Silver/Gold ratio has moved lower, and is now 64.82 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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