Weekly Market Report 8/25/14

This Week’s Headlines:

Gold
Silver
Rare Coin Market Update
Recommended Investment Commitment and Diversification

GOLD

Gold has traded in a narrow $40 per ounce price range both above and below the $1,300 per ounce level since the beginning of this month. Gold closed on Friday at $1,280.20 per ounce, down $2.60, during the sixteenth trading day of August. Given the geopolitical crises and military activity around the globe, this is disappointing. However, the strength of the U.S. Dollar in the foreign exchange markets, combined with global demand for physical Gold (which has dropped from 2013 levels) and the high possibility of a recession in Europe, has resulted in investors selling Gold when it reached the $1,325 per ounce resistance level.

From the beginning of the year Gold has actively traded at both above and below the $1,300 per ounce level; never breaking below $1,200 nor above $1,400 per ounce. This is surprising because in past years Gold has shown much more price volatility. While I continue to believe that Gold will close the year near the high end of the trading range, I think 2014 will go down as the year Gold consolidated its price (built a base) before hitting new highs in the years following.

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SILVER

Silver continues to test its recent low of $19.29 per ounce. Regardless of Gold’s recent drop, it finds bargain buying and then quickly rallies up $0.10 to $0.20 per ounce. Silver’s major support price is $19.00 per ounce, while the resistance level remains at $20.00 per ounce. Any break above or below these levels will provide the short term direction of the market.

The Silver/Gold ratio has moved higher and is currently at 66.04 to 1.

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Rare Coin Market Update

Next week I head to Long Beach, California to the Long Beach Coin Expo. This rare coin convention should be well attended and I am hoping to fill our clients’ rare coin want lists. As the high end 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 year I have been reporting from major coin conventions that demand for investment quality Gold and Silver U.S. rare coins has continued to grow, while most dealer’s inventories were at very low levels. These fundamentals were an outstanding harbinger of much higher prices coming very soon. Many of the dealers who attend these conventions have reported raising both their asking and bid prices for many of their Gold and Silver rarities.

If you haven’t already sent in your rare coin want list to David or myself, please email me your list of coins needed.

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 40% of investment capital

Diversification:  Gold 45%, Silver 50%, 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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