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

'Buy Gold!' Says the Bank of England

Goldman Sachs Boosts Gold Price Forecast, Sees $1,450/oz in 12 Months

Chinese Gold Consumption Rose 9.4 Percent In 2017

Why I'd Buy Gold Over Bitcoin Right Now

Silver Price Has Not Yet Begun to Lead Gold Price

Can Rising Yields Stop Gold?

 

This Week’s Headlines:

Gold
Silver
Long Beach Coin Expo starts February 22
Modern Coin Report
Recommended investment commitment and diversification

 

GOLD

Whether you're an equity, bond or precious metal investor, February has been truly ugly. A selloff in the U.S. equity markets negatively affected world markets for stocks, bonds, and precious metals. Investors lost billions of dollars as we watched a drop of 2,700 points (10.3%) in the U.S. Dow/Jones average since the beginning of February, with Gold dropping $35 (2.5%) during the same period. With the exception of 2008, normally Gold would go in the opposite direction of equity markets. However, Gold and Silver were defensive all week, sometimes rallying when equities declined, but definitely affected negatively by the high volatility and bearish sentiment.

Gold ended last week at $1,313.50, down $21.60 per ounce for the week, but still up since the beginning of 2018. Gold moved from a low of $1,238 on Dec. 12, 2017 to a high of $1,365 on Jan. 25, 2018, a $127 gain. At the current price, Gold has corrected $51.50 of the $127 increase. That's 40% of the recent gain, and acceptable during a bullish rally.

What's the problem? During the world's equity sell-off, surprisingly, the U.S. Dollar rallied 3% and interest rates moved higher, on concerns about coming inflation. Regardless of what happens in the stock markets, I don't see Gold breaking below the $1,300 per ounce support level (with the exception of a short-term test).

What's next for the Gold price? I think last week's decline in the price of Gold was an overreaction to the crazy volatility in the world's equity markets and Gold is undervalued. I believe Gold will gradually work its way back up to the $1,330 to $1,350 per ounce trading range.

Today: This morning the world's equity markets have stabilized and Gold moved higher in Asian, Middle Eastern, and European markets. When U.S. markets opened Gold was up $10 per ounce.

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SILVER

It is clear that Silver doesn't yet have the inherent price support that Gold has right now. When Gold sells off, Silver sells off at a greater percentage. The only occasion that Silver increases at a higher percentage than Gold is when Gold breaks above a major resistance level. A Silver/Gold ratio of 81.52-to-1 is ridiculous when you have the Federal Reserve and many economists talking about inflation coming soon. History has shown us that during times of serious inflation, the price of Silver appreciates at a much larger percentage than the Gold price. Silver is an outstanding value at the current Silver/Gold ratio, and when Gold breaks above $1,400, I believe that the ratio should drop below 75-to-1.

Silver closed last Friday at $16.11, down $0.57 per ounce for the week, and at the lowest price in 2018. This is a very surprising price when you consider the Silver fundamentals of supply/demand have never been better. It is impossible for me to believe the Silver price will stay in this neighborhood for very long.

Today: This morning Silver has rallied sharply, based on a Gold rally and a weaker U.S. Dollar. Silver moved higher, above the key $16.50 per ounce level on bargain buying, primarily from Asian markets.

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Long Beach Coin Expo starts February 22

Next week, I will be attending the February 2018 Coin Expo convention in Long Beach, California. If you are in the Long Beach area, please stop by and visit us at Table 826 on Thursday, 2/22. This is a major rare coin convention, and I expect to see active trading on the bourse trading floor, with hundreds of the major rare coin dealers and thousands of collectors and investors. I'm hoping to pick up many of the undervalued $20 Gold Saints, and Morgan Dollars, to build up our inventory and fill clients' want lists. Please, update your want list if you haven’t recently.

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Modern Coin Report

2018 New Releases from the US Mint Update
As we continue on into 2018, we are working hard to keep everyone updated on availability and upcoming releases of 2018 Gold, Silver, Platinum, and Palladium coins. We see strong demand for several modern coins released by the U.S. Mint, with stable second-hand markets. Please see what is currently available and our best estimates of upcoming releases planned for 2018.

Currently Available for Pre-Sale/Sale Expected Ship Date
2018 1oz Platinum Proof Eagle 2-3 Weeks
2018 1oz Platinum Proof Eagle PCGS PR70DCAM FS 2-3 Weeks
2018 1oz Platinum Proof Eagle NGC PF70UCAM ER Available Now
2018 1oz Gold Eagle BU Available Now
2018 1oz Gold Eagle PCGS MS70 FS Available Now
2018 1oz Gold Eagle NGC MS70 ER Available Now
2018 4pc Set Gold Eagle PCGS MS70 FS 1-3 Weeks
2018 4pc Set Gold Eagle NGC MS70 ER 1-2 Weeks
2018 1oz Gold Buffalo BU Available Now
2018 1oz Gold Buffalo PCGS MS70 FS Available Now
2018 1oz Gold Buffalo NGC MS70 ER Available Now
2018 1oz Silver Eagles BU Available Now
2018 Green Monster (500 Silver Eagles) Available Now
2018-W Proof Silver Eagle (PCGS/NGC/Govt Pkg) Call for Details
2018 1oz Silver Eagle PCGS/NGC MS70 FS/ER Call for Details

 

2018 Coin Types for Pre-Sale Estimated Pre-Sale Release
2018 1oz Platinum Eagle BU February 21st, 2018
2018 1oz Platinum Eagle PCGS MS70 FS February 21st, 2018
2018 1oz Platinum Eagle NGC MS70 ER February 21st, 2018
2018 1oz Gold Proof Eagle March 1st, 2018
2018 1oz Gold Proof Eagle PCGS PR70DCAM FS March 1st, 2018
2018 1oz Gold Proof Eagle NGC PF70UCAM ER March 1st, 2018
2018 4pc Set Gold Proof Eagle PCGS PR70DCAM FS March 1st, 2018
2018 4pc Set Gold Proof Eagle NGC PF70UCAM ER March 1st, 2018
2018 1oz Gold Proof Buffalo Spring 2018
2018 1oz Gold Proof Buffalo PCGS PR70DCAM FS Spring 2018
2018 1oz Gold Proof Buffalo NGC PF70UCAM ER Spring 2018

More Updates Coming Soon

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 30% of investment capital

Diversification:  Gold 55%, Silver 35%, 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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