Weekly Market Report 10/28/13

This Week’s Headlines:

Gold
Silver
Rare Coin Market Update
Recommended Investment Commitment and Diversification

GOLD

The recent upward trend in Gold continued last week, increasing $38 per ounce for the week. Since October 15, Gold has gone up $100 per ounce and closed above $1,350 per ounce on Friday, Oct. 25. Right now Gold is trading above the very important technical resistance level of $1,355 per ounce. A close above this level could easily take the price of Gold to the $1,400 level very quickly.

Last Tuesday’s U.S. government announcement that the workforce only gained 148,000 jobs during the month of September was well below the expected 180,000 jobs and was very disappointing. The official unemployment rate did fall from 7.3% to 7.2%, but showed little improvement in the labor market. This news confirms that the Federal Reserve is not likely to reduce its current $85 billion monthly stimulus anytime soon. After this announcement, the international value of the U.S. Dollar dropped and precious metals quickly rallied. Gold moved up $20 immediately, and continued to move higher for the remained of the week.

Lots of important economic news is due out next week including the U.S. October consumer confidence index and the August Shiller housing prices on October 29. This coming Wednesday, the Federal Reserve Open Market Committee will give its October report followed by a press conference, which could have a dramatic effect on the Gold price.

Physical demand for Gold is picking up as the U.S. Mint reports that it sold over 40,000 ounces of Gold Eagles as of October 24, triple the rate of sales for both August and September.

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SILVER

With Gold moving up $38 per ounce (2.88%) last week, Silver showed equal strength and moved up $0.73 per ounce (3.21%), closing the week at $22.64 per ounce on good volume of trading Friday. After breaking above the $22 per ounce resistance level last Monday, Silver was able to stay above $22 all week, reaching a high of $22.91 last Thursday. The next resistance levels for Silver are $23 and $25 per ounce. As long as Gold stays in a bullish trend, we could see Silver reach those levels. The Silver/Gold ratio closed the week at 59.74%, virtually the same as last week. Physical demand for Silver investment products continues to stay strong. The U.S. Mint is reporting 1 ounce Silver Eagle sales at 2,386,000 coins, reaching a total of 38,474,000 so far this year and on pace for an all-time record high.

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Rare Coin Market Update

Next week I head to Baltimore, Maryland for the Whitman Coin Expo, the last major coin show of the year. This rare coin convention should be well attended and I am hoping to fill our clients’ rare coin want lists. As the certified investment quality rare coin market soars, I am seeing increasing demand from our clients for the CoinStats recommended Gold and Silver coins.

For the past nine months I have been reporting from major coin conventions that demand for investment quality Gold and Silver U.S. rare coins has continued to grow, while most dealer’s inventories have been at very low levels. These fundamentals are an outstanding harbinger of much higher prices coming very soon. At these major conventions I see tremendous demand at both auctions and on the dealer trading floor. Prices have been driven up 15% or more on many of the CoinStats recommended Gold and Silver rare coins. Many dealers who attend these conventions have reported raising both their asking and bid prices for many of their Gold and Silver rarities.

If you haven’t already sent in your rare coin want list to either David or to me, please email your list of coins needed.

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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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