Weekly Market Report 7/8/13

This Week’s Headlines:

Gold
Why was the June jobs report so negative for Gold?
Hong Kong Gold exports to China jump 36% in May
Silver
Platinum & Palladium
Trading Recommendation
Collectible Coin Protection Act
Recommended Investment Commitment and Diversification

GOLD

Early last week we saw the Gold markets bullish reaction to what technical analysts called on Friday June 28, 2013 “an inter-day reversal” with Gold making a new low ($1,180 per ounce) and closing up on the day, near the highs. From Monday to Wednesday Gold rallied from $1,223 to $1,267 per ounce on excellent trading volume. However, last Friday’s better-than-expected 195,000 June jobs report halted the short term rally in Gold. Although Gold opened higher ($1,252.70 per ounce) after the June jobs report was released, the Gold market saw sizeable amounts of sellers, driving it down to a low of $1,206 per ounce. Gold rallied at the close last week in late after-market bargain buying at $1,223.00, virtually unchanged from the previous week. Right now we have support at $1,200 per ounce and resistance at $1,267 per ounce.

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Why was the June jobs report so negative for Gold?

The combination of the better-than-expected 195,000 June jobs report along with a government revised count for April and May jobs report shows 70,000 more jobs to come. This news is the sign that the U.S. economy is on solid ground, despite higher taxes, government spending cuts and signs of weakness overseas. These reports and news make a good argument that the Federal Reserve can now justify any decision to begin tapering off its $85 billion monthly stimulus program. Any indication that the Federal Reserve will cut stimulus in the short term is very negative for Gold.

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Hong Kong Gold exports to China jump 36% in May - July 8, 2013

Since Hong Kong exports all of China’s Gold to the mainland, the Hong Kong Census and Statistics Department said that Hong Kong’s net Gold exports rose to 108.8 tons in May from 80.1 tons in April. Gold exports hit an all-time high of 136.2 tons in March.

Analysts said that it was the second strongest monthly reading on record and that lower prices had attracted mainland buyers. Gold has lost more than 26% of its value so far this year, prompting a rush for Gold jewelry, bars and coins in Asia.

Hong Kong’s Gold exports for the first five months of this year came to 413.4 tons, doubled from the same year-ago period. China imported 832.2 tons of Gold in all of 2012.

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SILVER

After reaching a three year low of $18.17 on Friday June 28, Silver rallied on Monday July 1st and tested the $20 per ounce resistance level but couldn’t hold it. For the balance of last week Silver traded between a high of $19.79 and a low of $18.67 per ounce. Last week being a holiday week Silver’s CME trading volume wasn’t heavy, with the exception of Friday after the June Jobs report was released. The June Jobs report was more negative for Silver than Gold because of the potential tapering off of the Federal Reserve’s monthly stimulus program.

Silver has short term support at $18.67 per ounce, and long term support at $18 per ounce. While resistance remains at $20 per ounce. The Silver to Gold ratio is currently at the 64 ½ to 1 level.

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PLATINUM & PALLADIUM

The price of Platinum was lower last week. Platinum closed down $13.50 per ounce, at $1,326 per ounce, trading at a $113 premium to the Gold price. Palladium was the only precious metal that was higher last week, rallying $16.85 per ounce to end the week at $677 per ounce.

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Trading Recommendation

In my August 13, 2012 Weekly Market Report I made the recommendation to purchase 1oz Platinum Maple Leafs while they were trading at a $223 discount to Gold. Today, Platinum is trading at a $120 premium to the Gold price, therefore I am recommending trading back into Gold and picking up approximately $300 per ounce.

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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.

On June 19, 2013 I walked the halls of Congress in Washington D.C. and met with a number of Congressmen. I showed them Chinese made counterfeit U.S. coins and discussed the many good reasons for them to become a Co-Sponsor of HR 1849 (Collectible Coin Protection Act). My congressman, Henry Waxman from California was especially helpful, offering to send out a “Dear Colleague” letter to other congressmen about supporting HR 1849.

If you haven’t already contacted your congressman about supporting HR 1849, please visit http://www.goldandsilverpac.com/Coin_Protection_Act.html

Please email your congressman’s reply to me.

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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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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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