Weekly Market Report 11/17/14

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

New Currency Wars Cometh - Gold to Be "Last Man Standing"

Don’t Discount the Yes Side in Swiss Gold Referendum

Russia moves away from Dollar, embraces Chinese currency

This Week’s Headlines:

Gold
Russia moving away from the U.S. Dollar
Silver
Pre-order 2015 First Strike Silver Eagles
Recommended Investment Commitment and Diversification

GOLD

Fridays in November must be bullish for Gold. On Friday Nov. 7, Gold increased $27 per ounce on heavy volume of a whopping 297,000 CME hundred-ounce Gold contracts. Last Friday we saw a similar rally, with Gold up $24 on volume of over 292,000 contracts. Both trading volumes were the highest of their week. Even more exciting is that on last Friday’s trading, Gold had another “Intra-day” Reversal, dropping to $1,146 and then closing near the day’s high on large volume. Additionally, Gold broke out above the very important $1,180 per ounce resistance level on Friday, while reaching a high of $1,192.90. Gold closed the week at $1,185.60, up $15.80 per ounce for the week.

Many technical analysts were excited and became bullish last Friday when Gold broke above the $1,180 per ounce level on high trading volume. Last week MacNeil Curry, BofA Merrill Lynch head of Technical trading, said, We are switching gears on gold from bearish to bullish, "Friday’s gains are just the beginning." Friday’s Bullish Reversal / Bullish Engulfing Candle marks the end of a 4 year decline and the beginning of a medium term bull trend. Initial targets are seen to 1241/55 ahead of 1345 and potentially as far as 1433. He recommends buying Gold on dips.

I would agree with Mr. Curry, if Gold could sustain a rally above $1,180 per ounce very soon. The next important level is $1,200 per ounce, a major long term resistance level. If Gold can sustain its current breakout and move above $1,200 per ounce, many more analysts and professional traders will change their sentiment from negative to bullish. After that, Gold will move sharply higher on short covering and fresh buying.

Today, after reaching a high of $1,194 in early Asian trading, Gold tested support at $1,180 per ounce and held. It looks like Gold has made a major turn and should be heading higher quickly.

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Russia moving away from the U.S. Dollar

Russian President Vladimir Putin said Friday his country has decided to move away from using the U.S. dollar for international trade. To further keep the value of the Ruble up without using U.S. dollars, the Russian Central Bank purchased 55 metric tons of Gold in the third quarter of 2014.

South Korea has also expressed an interest in improving commerce with China and is intending to build an offshore hub for trade in Renminbi. A trade agreement last week between China and Canada will establish a similar trade hub in Toronto, again bypassing U.S. dollars as a means of transfer of payments.

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SILVER

After reaching a five year low of $15.04 per ounce on November 7, the demand for physical and paper Silver has picked up dramatically. Last Friday, Silver broke above the key $16.00 per ounce resistance level on the largest trading volume for the week, 83,000 CME 5,000 December Silver contracts (41.5 million ounces). Friday’s trading activity looks like an “Intra-day” reversal on a downward trend line, with Silver reaching a high of $16.38 per ounce.

Silver closed at $16.31, up $0.60 per ounce for the week. Silver needs to stay above $16 per ounce to increase professional trader demand, but when it surpasses $16.45 per ounce, (its 21 day moving average) the technical analysts would get bullish.

Today, Silver moved higher in Asian trading, reaching a high of $16.50 per ounce before seeing short term profit taking. Silver then sold off to test support, by hitting $16.02 on excellent volume in U.S. markets. Staying above $16.00 per ounce in today’s trading is very bullish after last week’s major rally.

Right now the Silver/Gold Ratio is currently at 73.55-to-1.

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Pre-order 2015 First Strike Silver Eagles

Stuppler & Company is now accepting orders for First Strike U.S. 2015 Silver Eagles for only $3.29 over spot in lots of 100 - 499, and $2.95 over spot for the First Strike Green Monster box (500 coins). You can lock in today’s low Silver price for delivery early in 2015. Call toll-free 1-888-454-0444 or email me at [email protected].

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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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