Weekly Market Report 10/14/13

This Week’s Headlines:

Gold
Silver
Indian Demand for Silver up 80% this year
October 2013 CoinStats now available
Recommended Investment Commitment and Diversification

GOLD

Given all the congressional problems facing Washington D.C., Gold still could not stay above the important $1,300 per ounce support level last week. Last Friday, a person or organization sold 5,000 hundred-ounce CME December 2013 contracts (500,000 ounces), which drove the Gold price down $25 immediately. This sale caused the commodity exchange to halt its trading for 10 seconds until the order was completed. It hasn’t been reported yet who sold the Gold contracts. Gold closed last Friday at $1,268 per ounce, down $41 per ounce for the week. This morning Gold is up $12 per ounce, trading at $1,280 per ounce on excellent volume.

With the continuing possibility of the U.S. Government defaulting on its debts, Gold should have been able to rally; not drop 3%. Why? It appears that there is a major seller on the commodity exchanges, not in the physical market. The physical market for Gold investment products internationally, and in the U.S. market, has never been stronger. We are seeing heavy demand for Gold bullion and coins globally, setting new all-time consumption records. The 5,000 CME December Gold contracts that were sold was a speculation without needing to provide any physical Gold. The seller just needs to buy them back, or roll them into a 2014 month, before the December 2nd deadline.

It is very disappointing that Gold couldn’t hold above the key $1,300 per ounce support level. Unless Gold rallies back above the key $1,300 per ounce level by early this week it is in a short term down trend. The next support levels for Gold are around $1,250, $1,200 and $1,180. With the Chinese actively buying Gold it will be difficult to break below those levels. See today’s article entitled “China Imports Over 2,000 Tons of Gold in Last Two Years” at http://www.mintstategold.com/investor-education/china_gold_imports_past_two_years/.

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SILVER

Considering Gold’s $41 per ounce drop, breaking below the important $1,300 per ounce support level last week, Silver did surprisingly well last week. Silver closed the week at $21.25, down $0.50 per ounce, and showing excellent demand at the $21 per ounce support level. The Silver/Gold ratio has strengthened, and is now at 58.73 to 1.

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Indian Demand for Silver up 80% this year

Since the Indian government war on Gold started this year, Silver has garnered more and more investment attention. The latest numbers show India’s public consumption of Silver is up 80% this year over last.

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October 2013 CoinStats now available

Our numismatic CoinStats quarterly report is the best investment tool for rare coin investors. CoinStats is an in-depth statistical analysis of popular rare coin series that allows you to identify the best values in U.S. certified rare coins. I am proud to offer this unique and informative tool exclusively to our clients. The October 2013 CoinStats report is now available for $20 Gold Saint Gaudens, $20 Gold Liberties, Morgan & Peace Silver Dollars, and the Walking Liberty Half Dollar series.

CoinStats provides a list of my recommended certified U.S. Gold and Silver coins which are found listed on the best value page. These are not the modern issue bullion coins or low-grade circulated coins; they are PCGS/NGC Certified MS63 or higher Gold and Silver U.S. rare coins, dated prior to 1948. These investment quality rarities have a proven track record of appreciation over the past 60 years or longer.

For the latest CoinStats analysis, just put CoinStats in the subject line and email me which series you would like to see.

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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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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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