Weekly Market Report 9/2/14

This Week’s Headlines:

Gold
Silver
Rare Coin Market Update
Recommended Investment Commitment and Diversification

GOLD

Last week Gold traded in a narrow $22 high/low trading range on all five days. The high for the week was $1,297 per ounce, while the low was $1,275. The trading volume was low, due to light summer trading leading into a long holiday weekend. Trading volume increased when Gold traded below $1,280, as well as when it reached $1,297 per ounce. This morning Gold broke down below the $1,280 per ounce on heavy volume (over 100,000 December hundred-ounce contracts) and quickly dropped to the $1,260 area. It appears that Gold could hit its major support at $1,250 before starting the next rally higher. Traders call this, “Cleaning out the Weak Hands” if Gold reaches the $1,250 per ounce level and quickly turns higher on heavy volume, which would be a major buy signal.

Starting this week we are moving out of the summer months and heading into the traditional heavy Gold demand period. Also this month, Gold jewelry manufacturers start acquiring Gold bullion to create new designs for the coming holiday season. Asian Gold jewelry demand is expected to increase over the record 2013 levels.

The ongoing military activity and geopolitical crises in the Middle East and Ukraine continue to provide an incentive to own Gold, the safe haven asset.

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SILVER

Last week Silver traded in a narrow $0.58 high/low trading range all five days. The high for the week was $19.88 per ounce, while the low was $19.30. $20 per ounce still continues to be the major resistance level. Silver is finding bargain buying and excellent support above $19 per ounce. Any break above or below these levels will provide the short term direction for the market.

The Silver/Gold ratio has moved higher and is currently at 66.37 to 1.

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Rare Coin Market Update

Tomorrow I am going to Long Beach, California for the Long Beach Coin Expo. If you are in the Long Beach Convention Center area this Thursday or Friday say hello, we are at table #820. 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 the major coin conventions that demand for investment quality Gold and Silver U.S. rare coins has continued to grow, while most dealer’s inventories have been at very low levels. These fundamentals are an outstanding harbinger of much higher prices coming very soon. Many of the dealers who attend these conventions have reported raising both their ask 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 me, please email me your list of coins needed ASAP.

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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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