Weekly Market Report 11/4/13

This Week’s Headlines:

Gold
Silver
Rare Coin Market Update
Recommended Investment Commitment and Diversification

GOLD

October saw Gold trade from a low of $1,251 to a high of $1,361, closing out the month at $1,323.70 per ounce and last week at $1,313.20. After all that volatility, Gold was ultimately down $3.30 for the month of October. The $1,300 support level is as important as the $1,360 resistance level for the future short term direction in the Gold market. As we approach the winter months, traditionally a very bullish time for precious metals, I expect to see physical demand for Gold continue to increase at a faster pace.

Last Wednesday, the Federal Reserve Open Market Committee’s report on the state of the U.S. economy was released and it was neutral. The Fed continues with their $85 billion monthly bond purchase program, and stated that the current fiscal policy is restraining economic growth. They also discussed other issues such as the housing and labor markets, but that outlook seems to be slightly better, and that gave the dollar a little strength.

Today, Gold is holding in the $1,315 to $1,320 area on moderate trading awaiting news from the European Central Bank on the possibility of loosening monetary policies.

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SILVER

Silver closed last Friday at $21.83 per ounce, down $0.80 for the week but up $0.13 per ounce for the month of October. During the month of October Silver showed excellent support at $21 per ounce, while continuing to have major resistance at $23 per ounce. The Silver/Gold ratio closed out the week at 60.14%, virtually unchanged from last week.

October was another 3 million+ 1oz Silver Eagle sales month for the U.S. Mint. At the current rate of monthly sales the U.S. Mint could easily set an extraordinary all-time record high of over 45 million 1oz .999 Silver Eagles sold.

Indian demand for Gold during the biggest Gold-buying festivals of Dhanteras and Diwali (celebrated last Friday and over the weekend) was lower than estimates had predicted. Many Indian’s were purchasing the cheaper Silver instead of Gold due to high Gold premiums and the scarcity of Gold (due to government restrictions) in the physical market.

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Rare Coin Market Update

I head to Baltimore, Maryland tomorrow for the Whitman Coin Expo, the last major coin show for this 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 ask and bid prices for many of their Gold and Silver rarities.

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

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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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