Weekly Market Report 12/1/14

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

WGC 2014 Q3 Gold Demand

This Week’s Headlines:

Gold
The Day Gold Turned Bullish
Swiss Voters Reject Referendum to Increase Gold Reserves
Silver
Pre-order 2015 First Strike Silver Eagles
Recommended Investment Commitment and Diversification

GOLD

After having traded in the $1,180 to $1,207 range for over the past two weeks, Gold got hammered last Friday. The combination of a major decline in oil, negative polls for the Swiss Gold referendum, and a record high value for the U.S. Dollar versus the Euro, Yen and Ruble, all caused Gold to drop $22. Gold broke through the important $1,180 per ounce support level, and then reached a low of $1,164. At the close of last Friday’s trading, Gold ended the week at $1,175.50 per ounce on heavy trading.

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The Day Gold Turned Bullish

In Asian trading Monday morning Gold continued its decline, reaching a low of $1,141 per ounce on heavy trading. By the time Gold trading hit Europe the bargain buyers were lining up. Gold quickly bottomed out then started moving higher. Today was truly a classic Intra-Day reversal, bottoming out and then closing on or near the day’s high, on heavy trading volume.

After Gold broke above $1,200 per ounce, all the short sellers began running to cover their positions and the price continued to move higher. Trading volume is at record levels in both the futures markets and the ETF paper shares. Ever since Gold reached $1,920 per ounce on Sept 6, 2011, the Gold price has been in a decline waiting for a turn. TODAY IS DEFINITELY THAT DAY. Start adding to your Gold positions immediately!

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Swiss Voters Reject Referendum to Increase Gold Reserves

(Courtesy of Forbes) - In Sunday’s Swiss Gold referendum, roughly 78% voted against expanding central bank Gold reserves to 20% of central bank assets from the current 7%, according to Swiss national broadcaster SRF. The vote is a blow to the movement to “Save Our Swiss Gold” that had the hopes of moving Switzerland back toward a Gold standard which the country left in 1999. Since then, there has been no requirement for the country’s currency to be backed by Gold and as a result central bank Gold reserves have waned considerably. The referendum results are not surprising given earlier polls had predicted the “no” camp would win by a large margin, however the results have mitigated concerns that increased demand from the Swiss National Bank (SNB) could cause a spike in Gold prices. Despite the criticism of easy monetary policy within the “Save Our Swiss Gold” movement, to maintain the current exchange rate floor on the Swiss franc against the euro, there is mounting pressure on the SNB to lower interest rates into negative territory on par with the ECB that lowered its key deposit rate into negative territory back in June.

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SILVER

On Friday, Silver was also hammered from the opening for the same reasons that drove Gold lower. Silver showed some light demand at the $16 per ounce support level, but after breaking below that level short selling hit the market and Silver quickly dropped. At one point during Friday’s trading, Silver was down $1.14 (6.8%), and had reached $15.41 per ounce.

During today’s trading, Silver reached a low of $14.45 per ounce (a five year low) then turned with Gold and rallied over $2 on HEAVY DEMAND. Today’s trading established Silver’s short term price direction; HIGHER.

Right now the Silver/Gold ratio is at 75.55-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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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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