Weekly Market Report 09/08/14

This Week’s Headlines:

Gold
Silver
Rare Coin Market Update
Recommended Investment Commitment and Diversification

GOLD

The European Central Bank took a very aggressive stance last week to improve the worsening economic slump in the Eurozone countries. Last week’s stimulus announcement was an asset backed bond purchasing program along with a lowering of their key deposit and refinance interest rates. This action was more aggressive than most economists had expected. The result of this announcement was a sharp rally for the U.S. Dollar versus the Euro. The Dollar has increased almost 3% (to $1.29) against the Euro, a multi-year high. We value precious metals in dollars, and a strong U.S. currency is negative for Gold, which is priced in Dollars. The Gold price dropped to a low of $1,257 per ounce before rallying back.

Gold closed last Friday at $1,265.80 per ounce, down $21.60 per ounce for the week. Last week was filled with bad news for Gold, hitting support at $1,257 and rallying back on excellent volume.

Last week’s negative news:

1. Goldman Sachs restates their opinion that Gold will hit $1,050 per ounce this year
2. Lessening hostilities between the Russians and Ukrainians
3. A cease-fire agreement between Israel and Hamas after 50 days of warfare
4. The U.S. Dollar reaches a multi-year high versus the Euro (see above)

In spite of the above negative news Gold tested the $1,250 support level, reaching a low of $1,257 per ounce on Friday, and rallying back on heavy volume. $1,250 per ounce is a short term support level and we are seeing another attempt to drive the price down to that level today.

We are moving out of the summer months and heading into the fall period where traditionally the Gold demand increases. 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.

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SILVER

Last week Silver reached its major support level of $19 per ounce on Thursday, before rallying back to close the week at $19.15 per ounce, down $0.25 per ounce for the week. A combination of a weak Gold price and a strong U.S. Dollar has put the Silver price on the defensive. Silver continues to find bargain buyers between the $19 and $19.50 per ounce level.

The Silver/Gold ratio is currently at 66.09 to 1.

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Rare Coin Market Update

Last week I was in Long Beach, California for the Long Beach Coin Expo. This rare coin convention was well attended by thousands of rare coin collectors, investors, and dealers. Demand for high quality PCGS/NGC certified rare coins was very strong. Most of the dealers focused their attention on low population Gold and Silver rarities to fill their clients want lists.

I was able to make a number of new purchases of some better date PCGS and NGC Certified Morgan and Peace Dollars, as well as a few rare Gold Saint Gaudens and Liberties. We will be contacting our clients this week with some special offers.

At the Long Beach Coin Expo the A&A Set of Gold Saint Gaudens was on display for the attendees. This complete set of $20 Gold Saint Gaudens, dated from 1907 to 1932, is one of the finest collections ever assembled. I am proud to say that this rare PCGS $20 Gold collection is owned by one of my clients, and I had the pleasure of helping him build this set.

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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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