Weekly Market Report 11/14/11

GOLD

Gold had another up week, a $152 per ounce increase in just the last three weeks.  The volume of gold trading is increasing globally and volatility is growing. As the market price moves closer to a new all-time high I expect this scenario to continue.

Last week, as in the past few months, the primary mover of the precious metal markets has been the European debt and banking default crisis. Late last week and over this past weekend, it appeared that both Greece and Italy had formed new governments with new prime ministers. Both countries have passed new economic reforms and austerity laws to encourage the ECU to provide them additional bailout funds.  I’m hoping that this temporary fix will allow the currency, equity, and precious metal markets to calm down this coming week.

In China, gold imports have increased to a record 56.9 tonnes for September, a six-fold increase from 2010.  During the three-month period from July to September 2011, China imported about 140 tonnes of gold, more than the approximate 120 tonnes for the entire year of 2010. In India, the festival and marriage seasons continues to provide strong demand for physical gold and silver and will set new all-time record highs.

SILVER

Silver had another base building week as news out of Europe continued to cause concerns of the possibility of a global double dip recession. On the bullish side, Silver stayed above the very important $33.00 per ounce support level for the entire week. Silver closed the week at $34.68 per ounce on Friday, up $0.60 for the week.

Last Thursday the Silver Institute released a report titled “The Silver Investment Market”.  This update forecasts that the world’s silver investment demand will reach a record high total of $10 billion in 2011, representing a 66% increase over the $6 billion posted in 2010. The outlook for silver prices is bullish for the remainder of 2011 and into 2012. Silver investment has become a key area of the global silver supply/demand balance. The report forecasts that the U.S. Mint will sell 41 million American Eagle one ounce silver bullion coins, eclipsing last year’s record of 34 million coins. Read the entire report at….  

http://www.silverinstitute.org/images/stories/silver/PDF/SilverInvestUpdateNov11.pdf

PLATINUM

Platinum is trading at a $140 discount to the current gold price. If you don’t already own some platinum as part of your precious metal investment, now is an excellent time to make the addition. The popular 1oz .999 Australian Platinum Platypus coins are an excellent platinum investment, trading at a low premium.  

Recommended investment commitment and diversification: 

Precious Metal commitment: Minimum of 35 % of investment capital

Diversification:  Gold 66%, Silver 24%, Platinum & Palladium 10%

Diversification includes long term investment quality rare coins and short term bullion products.

On November 16th I am heading to Baltimore for two reasons...

Whitman’s Rare Coin Expo

First, I’ll be attending the Baltimore Coin Expo, the last major coin convention of this year. I am attempting to purchase investment quality, best value, certified rare coins that are listed in the current CoinStats report.  

Political Action Committee (PAC)

Second, as Chairman of the Rare Coin and Precious Metal communities Gold & Silver Political Action Committee (G&S PAC), I am hosting a fund raiser for Senator Tom Carper.  Senator Carper is a key member of the Senate Finance Committee and a friend of the community. The purpose of these fund raisers is to show our industry support and raise funds for Senator Carper’s upcoming re-election.  If you would like to contribute money to Senator Tom Carper’s campaign, please visit his website www.carperforsenate.com and select contribute. Please be sure to mention ‘rare coins’ or ‘precious metals’ in the occupation box.

For your general knowledge, some of the issues that are of great concern for the Precious Metal and Rare Coin community are:

• Laws that would require Internet sellers to charge/collect sales taxes for other states
• Federal Regulations for Rare Coin and Precious Metal dealers
• Chinese Counterfeit U.S. coins being shipped into the United States from China
• Allowing self-directed IRA’s to invest in rare coins

For more information on the Gold & Silver Political Action Committee, please visit www.goldandsilverpac.org

2012 Hyperinflationary Study Booklet just released

I am very proud to announce that my 2012 Hyperinflation study has been completed. This booklet, named “Is Hyperinflation the US Government’s Only Way Out?” is being mailed out now. The study answers two very important questions, “Is a gold standard possible?” and “Can gold be confiscated again?”

This 32 page booklet is my 2nd edition and completely updated with eight more pages than the 1st edition, which was released last May. A combination of great client suggestions on how to improve my 1st edition, along with all the global and domestic events that have occurred since May 2011, has allowed me to completely update the study.

If you do not receive your copies by next week, please contact my office immediately. Once again, I am asking for your opinions and/or suggestions to improve the 2013 edition.

New CoinStats

I believe that my CoinStats report is the best investment tool for rare coin investors. CoinStats is an in-depth statistical analysis of popular rare coin series that allow investors to identify the best values in certified rare coins. I am proud to offer this unique and outstanding investment tool exclusively to our clients.

The October 15, 2011 CoinStats update is now available for $20 Gold Saint Gaudens, $20 Gold Liberties, and Morgan & Peace Silver Dollars.

REMEMBER THE BLOG

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 to 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.