Weekly Market Report 12/31/12

This week we are accepting pre-orders for the 2013 1oz .999 Silver Eagles at today’s low prices. For more information on purchasing the First Strike 2013 Silver Eagles in quantities of 100 or more, including the popular sealed boxes of 500 pieces (First Strike Green Monsters) see below.  

GOLD

I feel that the lower Gold price streak of the past five weeks has finally ended.  Last week, Gold found substantial buying in the $1,650 to $1,660 per ounce price range and closed last Friday at $1,655 per ounce, down $5.30. For a holiday week it was no surprise that volume was extraordinarily low all four trading days.  International physical demand was very good, and I expect to see another announcement by the IMF on sizeable Central Bank buying.

Much of last week’s precious metal trading was centered around the news of progress reported from Washington D.C. on the Fiscal Cliff negotiations. I disagree with many financial analysts who believe that falling off the Fiscal Cliff would immediately be bullish for Gold. I think that if no agreement is reached by Congress by December 31, 2012 everything will drop immediately, similar to what happened in 2008 after the financial crisis. We could easily see the Dow Jones go down 1,000 points and Gold and Silver fall right through support levels.

My long term view for the Gold price is very bullish regardless of an agreement being reached to avert the Fiscal Cliff crisis; however, it could take a few weeks for the markets to hit bottom.  If Congress passes legislation and the President signs it by today, I would expect to see prices move higher in late Monday or Wednesday trading. Gold under $1,700 per ounce and Silver under $32 per ounce represent great value if any type of Fiscal Cliff agreement is reached.

Today at 10:45am PDT the President announced that Congress is close to an agreement on the primary Fiscal Cliff issues and the Gold market moved up $20 per ounce, while Silver moved higher by $0.20 per ounce.

IRAQ & BRAZIL CENTRAL BANKS BUYING GOLD TO BUILD UP RESERVES 

Iraq quadrupled its Gold holdings to 31.07 tonnes over the course of three months between August and October, data from the International Monetary Fund showed last week. It is Iraq’s first major move in years to bolster its Gold reserves. The quadrupling of Gold reserves by Iraq’s Central Bank is important since there are many oil rich nation’s Central Banks in the world with sizeable Dollar and Euro currency reserves and only a small allocation to Gold. This alone could lead to higher Gold prices. Meanwhile, Brazil’s Central Bank doubled its Gold holdings in two months, buying 17.2 metric tons in October and 14.7 metric tons in November.

MORE GOLD MINING PROBLEMS IN SOUTH AFRICA

Last week 1,700 Gold miners started a sit-in at the Harmony Gold mine in South Africa. Demands from the underground mineworkers, led by the Association of Mineworkers and Construction Union (AMCU) representatives, include the withdrawal of the suspension of 578 employees, including contractors, who were suspended for taking part in an unprotected strike last week. The Union wants better mine safety and health benefits at the Kusasalethu Mine.   

SILVER 

Last Friday Silver closed at $30.02 per ounce, down $0.08 per ounce. This is the fifth week in a row that Silver has closed lower, testing its $30 per ounce support level all four trading days. I believe that once Congress comes to an agreement for a workable solution to the Fiscal Cliff crisis, the price of Silver will quickly rally substantially.

PRE-ORDER 2013 1oz American Silver Eagles at Today’s Low Price

You can PRE-ORDER the 2013 U.S. 1 ounce .999 fine Silver Eagles in quantities of 100 or more at today’s low price. These will be the popular First Strike Silver Eagles in original tubes of 20, or sealed boxes of 500 (First Strike Green Monsters). We expect to be able to ship these Silver Eagles between January 20 and January 30, 2013. Actual delivery dates are based on the U.S. Mint exact shipment dates and specific shipment dates cannot be guaranteed in advance. 50% of payment via check or bank wire is due when the order is placed, with the balance of 50% due when the coins are received from the U.S. Mint and ready for delivery to you. To place your order visit http://www.mintstategold.com/silver/bullion-coins-and-bars/silver-american-eagles/us-silver-1oz-american-eagle-2013-bu-presale.html

PLATINUM & PALLADIUM

Last Friday Platinum closed at $1,517, down $19 per ounce. Palladium closed at $700 per ounce, up $18 per ounce. Platinum is now at a $138.50 per ounce discount to the price of Gold.

Recommended investment commitment and diversification:

Precious Metal commitment: Minimum of 35% of investment capital

Diversification:  Gold 50%, Silver 40%, Platinum & Palladium 10%

Diversification includes 50% in long term investment quality rare coins and 50% short term bullion products

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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.