Weekly Market Report 07/28/14

This Week’s Headlines:

Gold
China, is the Renminbi going to be backed by Gold?
Silver
Rare Coin Market Report
Recommended Investment Commitment and Diversification

GOLD

Gold spent last week fighting to stay above the $1,300 per ounce support level. It started the week well, holding above $1,300 until Thursday when an individual, corporation, or country sold a large quantity of 100 ounce Gold futures contracts as the U.S. commodity markets opened. This is the third time that a large amount of Gold contracts has been sold in the last two weeks. These sales are valued at over $5 billion worth of Gold, and still Gold keeps rallying back to above $1,300 per ounce based on ongoing geopolitical fears. Gold ended the week at $1,303.30, down $6.10 for the week.

The shooting down of Malaysian Airlines flight MH17 over the Ukraine last week and the crisis that followed combined with the Israeli army’s move into the Gaza Strip continued to heighten geopolitical concerns worldwide. If these crises continue to worsen, it will drive more demand to the ultimate safe haven investment, Gold.

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China, is the Renminbi going to be backed by Gold?

Two very insightful and thought provoking articles on China and their Gold holdings were released last week. The first was written by Jeff Clark, Senior Precious Metals Analyst from Casey Research, called “The TRUTH about China’s Massive Gold Hoard”. The second article was written by Kwasi Kwarteng and printed in the New York Times Opinion Section, that article was called “A Chinese Gold Standard?” Both of these articles are a great follow-up to my Gold book that was released in March 2014. In my Gold book I provided information on the Chinese Government’s increasing demand for Gold. Please take a few minutes and read these two articles. I have provided direct links below…

http://www.mintstateGold.com/investor-education/cat/news/post/truthchinaGold/

http://www.nytimes.com/2014/07/25/opinion/a-chinese-gold-standard-renminbi.html

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SILVER

Last week Silver traded from $20.35 to $21.17 per ounce, closing on Friday at $20.63, down $0.25 per ounce. Disappointingly, trading volume is considered light, which is normal for a summer month. Silver spent most of the last week trying to stay above the $21 per ounce level and failed.

If Silver can stay above $20 per ounce, it remains long term bullish, but it needs to move above $21 per ounce to regain its short term momentum.

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Rare Coin Market Report

I head to Chicago, Illinois this Friday for the American Numismatic Association World’s Fair of Money. This is the largest rare coin convention of the year. This convention will be very busy with thousands of rare coin collectors, investors, and dealers in attendance. I am hoping to fill our clients’ rare coin want lists. As the certified investment quality rare coin market soars, I am seeing increasing demand from our clients for the CoinStats recommended Gold and Silver coins.

For the past few years I have been reporting from major coin conventions that demand for investment quality Gold and Silver U.S. rare coins has continued to grow. Many rare coin dealers are reporting that their inventories are at very low levels. At recent major conventions I have seen tremendous demand both at the auctions and on the dealer trading floor where the prices have been driven up on many of the CoinStats recommended Gold and Silver rare coins. Many of the dealers who attend these conventions have reported needing to raise both their asking and bid prices for many of their Gold and Silver rarities.

I want to thank my clients who have updated their want lists. If you haven’t already sent your rare coin want list to me or David, please email one of us your list of rare coins needed.

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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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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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