Weekly Market Report 11/3/14

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

China Gold Imports Rise to Five-Month High Before Holiday Sales

Swiss Gold referendum likely to pass and send prices higher

This Week’s Headlines:

Gold
Right time to buy more Gold and Silver
Silver
My trip to Washington DC last week
Recommended Investment Commitment and Diversification

GOLD

Last week Gold declined $26.30 on Thursday and $27 on Friday, to close the week at $1,171.60 per ounce, the lowest price of the year. Last Friday, Gold actually reached a low of $1,160.50 per ounce before the trading volume sky rocketed to over 300,000 hundred-ounce (30 million ounces) CME contracts. As the trading volume increased, Gold rallied, closing the day at $1,171.60.

This morning, based on a very weak Japanese Yen and a very strong U.S. Dollar, Gold tested its recent low in Asian trading. After reaching $1,161 per ounce the decline stopped on excellent increased demand and a sizeable increase in trading volume.

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Right time to buy more Gold and Silver

I have been waiting three months to say that I believe the time is right to add more Gold and Silver to your holdings. The long term picture for Gold/Silver prices to move higher has never been more secure. With the European, Japanese, and Chinese governments’ concerned about possible deflation they are actively engaging in massive monetary stimulus (printing trillions of new Euros, Yen, and Yuan). These stimulus programs, along with the U.S. government’s three recent QE programs, will drive down paper money to its lowest value in history and increase inflation dramatically within the next 2 years. At the same time, knowing what will happen to the value of paper money many central banks around the globe have been aggressively exchanging their Dollars, Euros, and Yen for Gold, while building up their national Gold reserves. Additionally, the Swiss Referendum is coming this month and its passage would increase Swiss Gold demand by 1,500 metric tonnes (48 million ounces).

The fundamental reason to purchase additional Gold at today’s very attractive price has never looked better.

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SILVER

Silver dropped over $1.00 per ounce last week, hitting a four year low of $15.64 per ounce. Silver closed the week at $16.11 per ounce, down $1.08 for the week. Last week the trading volumes on the Silver futures exchanges were at high levels Thursday and Friday, and physical demand in the U.S. increased dramatically. Silver at around $16 per ounce or less is an extraordinary long term value.

The Silver/Gold Ratio has set another 2014 record of 72.74-to-1.

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My trip to Washington DC last week

Last Thursday I visited the Capital Building in Washington DC with Jimmy Hayes, our industry Lobbyist, and we spoke with Congressman Henry Waxman. We were able to secure his help for passage of the Collectible Coin Act, HR2754. This is the Rare Coin and Bullion Industry’s anti-counterfeiting legislation. As Chairman of the Gold & Silver Political Action Committee (G&S PAC), HR2754 is the top item on my agenda. This very important legislation has already passed the House of Representatives (with a unanimous vote) before the summer break, but has been sitting in the Senate Commerce Committee since then. HR2754 does not affect the budget, is non-partisan, and has no opposition. I was able to generate interest and support during my trip. I am hoping to see this bill pass after the November 4th elections during the Lame Duck session.

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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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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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