Weekly Market Report 10/20/14

Links to recent informative articles on precious metals and rare coins:

China Gold demand surging again

Gold imports soar 450% in India

This Week’s Headlines:

Gold
Silver
Travel to Baltimore and Washington DC next week
October 2014 CoinStats
Recommended Investment Commitment and Diversification

GOLD

Since searching for a low of $1,183.30 on October 6, 2014, Gold has rallied and stayed above the important $1,200 per ounce support level, ten trading days in a row. It closed last Friday at $1,239 per ounce, up $17.30 per ounce for the week. Last week there was a lot of volatility in the equity, energy, and bond markets as economists and government officials talked about the high possibility of worldwide deflation. I believe that in the next couple of months official data and statistics will prove that we are heading towards a deflation period. At that point, many of the leading economic nations around the world will start or increase their monetary stimulus programs (Quantitative Easing) to save their weakening economies.

Gold continues to be at an important crossroad with key support and resistance levels being at risk right now. Gold tested the $1,250 per ounce resistance level last Wednesday and couldn’t hold it, breaking down to close at $1,244, the highest closing price for the week. Gold needs to break above the $1,250 per ounce resistance level, and stay above that for a couple of trading days on heavy volume in order to change professional trader’s market sentiment to positive. However, if Gold breaks below the $1,200 support level again, we could easily see the bears regain control and drive the price down to $1,170 per ounce very quickly.

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SILVER

Silver did not show as much price support as Gold last week. It reached a brief high of $17.82 per ounce last Wednesday before seeing massive professional short sales on the highest trading volume for the week. Silver has shown sizeable Asian price support at $17.02 in the last two weeks. Silver ended the week at $17.33 per ounce, up $0.03 for the week, and at a record 71.5-to-1 Silver/Gold ratio. Remember, a deflation period would affect the Silver price more than Gold.

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Travel to Baltimore and Washington DC next week

Next week I head to Baltimore for the Whitman rare coin convention and ICTA* board meetings. This is the last major coin show of the year and I’ll be trying to locate many of the rare coins on my clients want lists. If you haven’t updated your want list recently, please email me by Friday.

During my trip I plan to visit the Capital Building in Washington DC to meet with key legislators and their aids in an effort to help passage of the Collectible Coin Act, HR 2754. This is the Rare Coin and Bullion industry’s anti-counterfeiting legislation. As Chairman of the Gold & Silver Political Action Committee, HR2754 is the highest item on my agenda. This legislation has already passed the House of Representatives with a unanimous vote before the summer break and has been sitting in the Senate Finance Committee since then. This legislation doesn’t affect the budget, is non-partisan, and has no opposition. I need to generate some interest and support, with the hope of getting passage during the Lame Duck session, which comes after the election.

*ICTA
Industry Council for Tangible Assets is the Rare Coin, Currency and Precious Metal’s communities legislative and regulatory watchdog. I have been a board member since it was founded in 1982.

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October 2014 CoinStats is 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 certified rare coins. I am proud to offer this unique and informative tool exclusively to our clients. CoinStats is now updated for October 2014 and is available in PDF format. Six different series are available: $20 Gold Saint Gaudens, $20 Gold Liberties, $10 Gold Indians, Morgan & Peace Silver Dollars, and the Walking Liberty Half Dollars.

The CoinStats report 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. These are PCGS/NGC Certified MS63 or higher Gold and Silver U.S. rare coins, dated prior to 1948, which have a proven track record of appreciation and also offer excellent liquidity. To receive the latest CoinStats analysis, just put the word “CoinStats” in the subject line and email me which of the six series you would like to see.

I want to thank the clients who gave suggestions on how to improve CoinStats. Those recommendations are appreciated and as a result I have implemented some changes beginning with the October 2014 CoinStats report. On the Best Value page you will now see coins that have increased in value in blue, and coins that have deceased in red. Additionally, new coins are indicated as such on the Best Value page.

If you have any suggestions for CoinStats, please feel free to email me. Because I believe that CoinStats is one of the best tools to help rare coin collectors and investors recognize great value, I will continue to look for ways to provide more important and relevant information. Your input on CoinStats is always appreciated.

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 45% of investment capital

Diversification:  Gold 45%, Silver 45%, Platinum & Palladium 10%

Diversification includes 50% in long term investment quality rare coins and 50% short term bullion products

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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.

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