Weekly Market Report 11/10/14

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

Reader Question on Greenspan and Gold: "No Fiat Currency Can Match It"

This Week’s Headlines:

Gold
Getting Bullish on Gold and Silver
Silver
Recommended Investment Commitment and Diversification

GOLD

After seven consecutive down days, Gold reached an unbelievable $1,130 per ounce. At that point, a major buyer thought Gold was a real bargain and began to aggressively buy before Friday’s close. As of now, I don’t know if the buyer was a Central Bank, a Hedge Fund or individual investors, but this buying caused the Gold price to move higher very quickly. I believe that Friday’s Gold trading on record trading volume has a high probability to be what commodity analysts call an “Intra-Day” reversal of a major trend line. Today’s Gold trading could confirm the reversal or show Friday’s move was a bear market rally.

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Getting Bullish on Gold and Silver

While watching Gold and Silver trade over the last three months and seeing the recent price corrections, I think adding to your holdings is starting to look extremely attractive. The long term picture for Gold/Silver prices to move higher has never been more secure. With the European, Japanese, and Chinese governments’ concerns 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 the value of paper money to its lowest level in history and increase inflation very dramatically within the next 2 years. At the same time, many central banks around the globe, knowing what will happen to the value of paper money, have been aggressively exchanging their Dollars, Euros, and Yen for Gold, while building up their national Gold reserves. Additionally, the Swiss Referendum is coming the end of this month. 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 low price is the long term outlook continues to be very bullish.

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SILVER

I had a difficult time believing that Silver could hit $15.04 per ounce last Friday, but it did. Not much Silver was traded at $15.04, a five year low, because the price quickly rallied higher on sizeable trading volume. At the close of trading last Friday, Silver had reached $15.71 per ounce on over 74,000 CME 5,000 December silver contracts (37 million ounces). This trading activity looks like it could have been an “Intra-day” reversal of a downward trend line. Today’s trading could confirm that Friday was really a change in the short term direction of the Silver price. Considering the current record world demand for Silver, and its shrinking supply, this represents an extraordinary value opportunity.

The U.S. Mint’s Silver Eagle sales for October 2014 was 5,790,000 one-ounce coins. That was more Silver Eagles than any other “non January” month in its history! As of today, the U.S. Mint has sold 39,381,000 Silver Eagles for 2014, and should set an all-time record by year end.

The Silver/Gold Ratio has set another 2014 record of 74.44-to-1.

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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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