Weekly Market Report 11/24/14

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

Russia Boosted Gold Reserves Last Month as Prices Declined

Support for Swiss Gold Referendum wanes

Dutch bring 120 tonnes of Gold back to Amsterdam from New York

China cuts interest rates to spur growth, ease debt pressure

This Week’s Headlines:

Gold
THE HANDWRITING IS ON THE WALL
Silver
Pre-order 2015 First Strike Silver Eagles
Recommended Investment Commitment and Diversification

GOLD

Gold’s recent price activity confirms my call that the November 7th low of $1,130 was the low for the year and that the “Intra-Day Reversal” ended the recent bearish trend. Gold continued to show excellent demand and price strength all last week. It briefly moved above the key $1,200 per ounce resistance level for three days last week. Gold ended the week at $1,197.70, up $12 for the week and $26 since the beginning of the month. At one point during trading on Friday, Gold reached $1,207.60 before the weekend profit taking and short sellers took the price below $1,200.

I expect to see Gold break above the key $1,200 per ounce level (it’s long term resistance level) this week and then make a quick rally to $1,240 by the early days of December. That move would change the trading sentiment of professional floor traders and technical analysts from selling on rallies to buying on dips. My short term goal for Gold right now is $1,300 per ounce. My longer term goal (1 – 2 years) is for Gold to set new all-time highs as the fundamentals kick in (See “THE HANDWRITING IS ON THE WALL”) below.

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THE HANDWRITING IS ON THE WALL

The world’s major central banks are currently doing two things. The Japanese, Chinese, and European Central banks are active in stimulating their economies by lowering interest rates and continuing Quantitative Easing. The strategy is to issue massive quantities of new currency and credits with the hope of avoiding deflation. At the same time, investment demand in Gold continues to grow which led to 929 metric tonnes of Gold being consumed in the 3rd quarter of 2014 alone. Please read the complete World Gold Council report at http://www.mintstategold.com/investor-education/wgc_2014_q3_gold_demand/.

Even more interesting is that demand has increased with a lower Gold price and supplies dropping 7% during the 3rd quarter of 2014. Why are the world’s major central banks (the world’s largest Gold investors) buying more Gold and repatriating the Gold held outside their countries? The answer is that their finance ministers are concerned about the trillions of U.S. Dollars, Yen, Euros and Renminbi that are being printed and how this will devalue their countries reserves.

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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 week, Silver tested its $16 per ounce support level three times and held. Silver also rallied over $16.50 twice last week before seeing short term profit taking and short selling, closing at $16.39 on Friday. As Gold moves higher this week, Silver should move back to above $16.50 on its way back to $17 per ounce very soon.

Current trading volumes on both the world’s commodity exchanges and physical investment products are at record levels. The U.S. Mint has already sold over 40 million Silver Eagles and will surely break the all-time record of 42,675,000 Silver Eagles sold last year. Many of the other popular Silver investment products are also selling at record levels around the globe.

Right now the Silver/Gold Ratio is at 73.05-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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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 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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