Weekly Market Report 9/9/13

This Week’s Headlines:

Gold
Two issues affecting precious metal prices
Strong recovery in China’s economy is bullish for Gold
Silver
Recommended Investment Commitment and Diversification

GOLD

Over the Labor Day holiday week Gold stayed within its 4% trading range, closing the week at $1,386.50 per ounce, down $9.60 per ounce for the week. After a month of price consolidation, Gold is ready to make the move higher. It has light resistance at the $1,435 price level but should be able to break above that level quickly. September has shown to be an excellent month for Gold; remember Gold reached its all-time high of $1,920 per ounce in September of 2011.

I continue to recommend that my clients make additional purchases and increase their Gold holdings immediately.

Back to top of report

Two issues affecting precious metal prices

The two issues now affecting the precious metal prices on a daily basis are the potential Federal Reserve tapering and the possibility of a missile attack on Syria.

1. The current question and concern for many professional commodity traders is whether or not the U.S. Federal Reserve will taper (reduce) the current $85 Billion monthly stimulus program at its Sept. 17-18 Federal Open Market Committee meeting. Recent economic and employment data does not necessarily reveal the type of strong recovery the Fed hinted it would need to see before reducing the current stimulus program.
2. Every time it appears that President Obama is gaining support for a missile attack on Syria, Gold and Silver rally. When negative arguments from congressional leaders are given in the media against a Syrian strike, or any announcement that postpones the decision, Gold and Silver back off.

Back to top of report

Strong recovery in China’s economy is bullish for Gold

Last Tuesday the Chinese made an official announcement regarding their August PMI numbers (factory activity) hitting a 16-month high. This increase in Chinese PMI shows a sizeable jump in new orders and is the fastest pace of growth in more than a year. It also shows a very strong recovery in their country’s economy.

Back to top of report

SILVER

The Silver price continued to behave better than Gold last week, never dropping below its $23.00 per ounce support level the entire week. On Friday Silver closed at $23.89 per ounce, up $0.38 per ounce on light volume. This week, I expect both the price and volume to pick up as Silver moves toward the $25 per ounce level. The Silver/Gold ratio has strengthened for Silver and is now at 58.03 to 1, down from 66.89 to 1 at the end of July.

Back to top of report

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

Back to top of report

REMEMBER THE BLOG

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.

Back to top of report