Weekly Market Report 10/22/12

This week’s Market Report provides you with an update on the status of the Rare Coin Market based on my recent trip to the ANA’s National Money Show in Dallas. Also, the October 2012 CoinStats update is now available for $20 Gold Saint Gaudens, $20 Gold Liberties, Morgan & Peace Silver Dollars, and the Walking Liberty Half Dollar series.

GOLD 

Last week was truly ugly for Gold investors. After nine straight weeks of strong rallies on Thursday or Fridays, Gold dropped $35 per ounce last week, closing the week at $1,724 per ounce, the lowest price for the month of October. More important however is that Gold broke through the $1,730 support level, reaching a low of $1,716 per ounce on Friday before we saw heavy demand prior to the close.

Disappointing corporate earnings, combined with no conclusive announcement from the Brussels ECB summit, sent the Dow Jones average down 200+ points with Gold down $21 per ounce on Friday. However, on Saturday, the members of the Eurozone reached an agreement on the introduction of the ECB as the single Eurozone banking supervisor. The legal framework should be in place by January 1, 2013. The ECB is expected to implement the requirement and responsibilities later in 2013. Rumors from the ECB Summit are that Greece is also close to reaching an agreement with its creditors, effectively remaining in the Euro.

The World Gold Council (WGC) Just Released its Third Quarter Market Summary

The WGC concluded that the backdrop of negative real yields, a slow recovery, and a likely continuation of expansionary monetary policies (with all the risks these present) provides further support to the long-term strategic investment case for Gold. Read the complete report here: http://www.Gold.org/investment/research/regular_reports/investment_statistics_commentary/ 

Strong Physical Demand for Gold is on the Horizon

Barclay’s head precious metal traders say that experienced Gold and Silver investors are moving away from paper Gold or ETF’s, and are purchasing physical Gold and Silver in segregated storage accounts. Read the full article here: http://www.mintstateGold.com/investor-education/investors_moving_to_physical_Gold/ 

Last Call for Gold

Gold at under $1,800 per ounce still represents an excellent entry point for new purchases. However, as we get closer and closer to the all-time highs of $1,920, the risk/reward ratio does not look as good as it does right now. I believe that we will see Gold go above $2,000 per ounce very soon, so why wait? Look at the Recommended Investment Commitment and Diversification section below, and if your Precious Metal commitment isn’t a minimum of 35% of your investment capital, make those purchases now.

SILVER

Last week Silver took its price direction from Gold. Silver dropped to a low of $31.95 per ounce, before rallying back on Friday to close the week at $32.09 per ounce. Friday’s close was the lowest for the month of October with trading volume at the highest level of the week. The Silver-to-Gold price ratio is now at a very attractive 53.71-to-1.

Silver Confiscation in 1934

Many Gold investors know that in 1933 President Roosevelt signed Executive Order No.6102, which resulted in U.S. Gold confiscation. However, many investors are unaware of Executive Order No.6814. In 1934, President Roosevelt signed Executive Order No.6814, The Silver Purchase Act of 1934, which forced American citizens to turn in their Silver or have it confiscated by the government. The following is a link to an article that provides more information about Order No.6814: http://www.mintstategold.com/investor-education/silver_confiscated_by_roosevelt/

PLATINUM & PALLADIUM

Platinum and Palladium took their price direction from Gold last week in spite of the continued mining strikes in South Africa. Platinum was down $44 per ounce, while Palladium declined $16 per ounce. Today, Platinum is trading at $1,615 per ounce, $108.50 lower than the Gold price; compare this to last week’s discount, when Platinum was only $100.40 per ounce lower than the Gold price.

RARE COIN MARKET UPDATE

I flew down to Dallas last Tuesday to attend the American Numismatic Association’s (ANA) Fall 2012 National Money Show at the Dallas/Ft. Worth Convention Center. I decided to go to the convention at the last minute with the hope that I would be able to pick up some high grade numismatic material. Over the past month, our sales of certified Gold and Silver rare coins picked up dramatically and we are in need of restocking our inventory. I was also looking to fill many clients’ Want Lists. 

The ANA’s National Money Show was well attended with all the bourse tables on the convention floor sold out. I spent three days on the dealer’s bourse floor and looked at a few hundred rare coins. Surprisingly, I was only able to purchase six rare Gold and Silver coins due to the low quality of available coins, or exorbitant asking prices. Having had many conversations with many major rare coin dealers, I heard and saw their optimism about the positive direction of the rare coin market and how aggressively they are trying to build up their inventories.

Finally, after three years of a weak, lackluster, rare coin market, followed by one year of price consolidation, the rare coin market is finally starting to move higher. A limited supply of PQ quality rare coins also helped the prices in the public auction, setting record prices for many rarities. The most popular rare coin series are the Morgan Dollars and $20 Gold Saint Gaudens.

Many Gold and Silver investment quality rare coins are at, or just above, the same levels that they were trading at four years ago. Gold was trading at $800 per ounce and Silver was $15 per ounce at that time. I strongly believe that many of the rare coins are undervalued and the ones recommended in the latest CoinStats report could easily appreciate 40% to 50% within the next year. Now is definitely the time to be adding investment quality certified Gold and Silver rarities to your holdings.

 The October 2012 CoinStats is now available

Our numismatic CoinStats 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. The October 2012 CoinStats update is now available for $20 Gold Saint Gaudens, $20 Gold Liberties, Morgan & Peace Silver Dollars, and the Walking Liberty Half Dollar series.

The CoinStats Report provides a list of my recommended certified U.S. Gold and Silver coins that are found listed on the Best Value page. These are not the overly-hyped 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 1936, that have a proven track record of appreciation.

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

Recommended investment commitment and diversification:

Precious Metal commitment: Minimum of 35% of investment capital

Diversification:  Gold 50%, Silver 40%, Platinum & Palladium 10%

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

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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.