Weekly Market Report 08/04/14

This Week’s Headlines:

Gold

Silver
Rare Coin Market Update
Recommended Investment Commitment and Diversification

GOLD

The fight between the Gold bulls and bears continued last week. The field for this battle was above and below the $1,300 per ounce price level. Last Wednesday in late trading Gold broke below the $1,300 level and closed at $1,296.90 per ounce. The next day technical traders and professional commodity traders sold Gold at the opening of trading, driving the price down $14.10, and Gold closed at $1,282.80. On Friday, Gold rallied $12 on profit taking and bargain buying, closing the week at $1,294.80 per ounce, down $8.50 on the week. $1,294 is the 50-day moving average; $1,285 is a short term support level, while $1,250 is the long term support level.
I am hoping that the bulls will regain control of the Gold market this week, taking Gold back above the important $1,300 per ounce level.

I am really having a difficult time understanding why Gold has declined, considering what is happening around the world. The ongoing wars in Israel and Ukraine and the geopolitical problems in Iraq, Libya, and Syria, under normal conditions, would drive up the price of Gold. I believe last week’s $8.50 decline in the Gold price is a temporary setback caused by a strong U.S. Dollar, and a major seller in the Gold market who has sold over $5 billion worth on Gold on the exchange in the past two weeks. I believe, the current price of Gold offers an excellent opportunity to acquire more.

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SILVER

Last week Silver traded from $20.25 to $20.85 per ounce, closing on Friday at $20.37, down $0.27 per ounce. After moving from $18.85, on June 2nd to $21.63 on July 10th, Silver has retracted half the increase by trading down to $20.37 per ounce. $20 per ounce is a very important long term support level, and I would expect to see that level tested this week.

The Silver/Gold ratio has moved lower, and is currently at 63.56 to one.

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Rare Coin Market Update

This week I am in Chicago attending the American Numismatic Association World’s Fair of Money. This is the largest rare coin convention of the year. This convention is just starting, but the lack of fresh investment quality certified Gold and Silver rare coins is very apparent. I expect to see thousands of rare coin collectors, investors, and dealers in attending the convention. I am hoping to fill our clients’ rare coin want lists.

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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