Gold & Silver bottomed out Nov. 25th and now heading higher<br />Mint State Gold - Weekly Market Report 11/28/16

| November 28 2016

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

Islamic investors could ignite the Gold bull market

Russia October Gold purchase posts biggest gain this millennium

May never get another opportunity to buy Gold at this level again

Dollar strongest in 13 years; bond yields rise

This Week’s Headlines:

Gold
100 million Muslim investors looking at Gold after Dec. 6th
Gold’s 15 most bullish fundamentals
Silver
Recommended investment commitment and diversification

GOLD

Last week, the Trump sell-off continued with Gold reaching a low of $1,170.30 per ounce on Friday. Gold broke down below the key $1,200 per ounce support level last Wednesday, causing margin calls and hitting sell stops. Last Friday, Gold closed at $1,178.40 per ounce, down $30 for the week. However, by Sunday evening trading on Asian markets, the price had rallied back to $1,197.90 per ounce on heavy volume. I believe Gold will rally back above the key $1,200 per ounce support level after the Federal Reserve raises its discount rate in December.

Today: This morning Gold has traded higher from the opening bell. Gold has found major buying in the face of a very strong U.S. Dollar and heavy redemption in the ETF Gold funds market. A move back above $1,200 per ounce this week would confirm the bear trend has ended in Gold.

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100 million Muslim investors looking at Gold after Dec. 6th

The new Sharia Gold Standard is set to be announced on December 6, 2016, at the World Islamic Banking Conference. “Shariah Standard on Gold” will provide “guidance from the Shariah perspective on the usage of Gold in financial and investment transactions for Islamic financial institutions and participants.” This announcement is likely to bring millions of new investors into the Gold market. For more details, please read this article: Islamic Gold – Vital New Dynamic in Physical Gold Market.

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Gold’s 15 most bullish fundamentals

Physical demand for Gold and Silver investment products is at the strongest level in years. Many world mints report record 2016 sales for bullion coins, showing sizeable increases.
Worldwide interest rates are at historic lows, with nine major countries quoting negative interest rates.
Global quantitative easing (money printing) in the U.S., China, Japan, and Europe is increasing debt at an unbelievable rate. The U.S. National Debt is approaching $20 trillion.
The World Gold Council is reporting mine production falling dramatically as the cost of production rises.
Central banks around the globe continue to trade their U.S. Dollars for Gold, thus building their Gold reserves.
Stockpiles of Gold in depositories continue to drop, filling heavy physical demand. This could soon cause a short squeeze on sellers of Gold.
ETF (paper) Gold investors have been aggressively buying in 2016, with GLD holdings increasing 243 metric tons since January 1st; up 37.78% to date.
Chinese investors, the world’s most aggressive Gold buyers, are switching out of equities into physical Gold and Silver. Gold buying is continuing to grow.
The U.S. Dollar is trading at a 13-year high vs. the Euro and other world currencies. This gives American investors the ability to purchase Gold at a bargain price.
The financial consultants, money/fund managers, and commodity professionals that are being interviewed in the financial media have become bullish on Gold and Silver. Why? Even at today’s low prices, Gold is up 11% and Silver is up 19.5% this year, compared to an 8% increase in the NASDAQ.
More countries are repatriating their Gold being held at the NY Federal Reserve Bank.
U.S. M2 money supply is accelerating, doubling from 6.5 billion to 13 billion in the past 10 years. After growing at 6% for the last couple years, it has now grown to 8½% for the past six to nine months. This will lead to serious inflation and a much higher Gold and Silver price within the next 12 to 18 months.
Many precious metal professionals and analysts strongly believe that China is accumulating massive amounts of Gold in an effort to replace the U.S. Dollar (as the world’s reference currency) with the Chinese Yuan. If this happened, it would diminish the value of your U.S. Dollars. Last month, the International Monetary Fund (IMF) formally added the Chinese Renminbi to the basket of reserve currencies. If the Renminbi became the world’s reserve currency, there would be a dramatic increase in the price of Gold valued in Dollars.
In the Basel III agreement, which is being implemented by the world banking system between 2013 and 2019, Gold will be upgraded from a Tier III asset to a Tier I asset in 2017. This will encourage many large banks to increase their Gold holdings and make loans on Gold.
Effective next month, over 100 million Muslim investors will be adding Gold to their holdings. A new Sharia Gold Standard is set to be announced on December 6, 2016, at the World Islamic Banking Conference.

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SILVER

Silver hit a low of $16.15 per ounce last week, but the price didn’t remain there long. Heavy Silver demand in the physical and futures markets showed excellent price support in the $16.50 per ounce area. Silver closed Friday at $16.47 per ounce, down $0.15 for the week. The Silver price has been performing better than Gold. Last week, Gold declined 2.5%, while Silver’s decline was less than 1%. It’s important that Silver break back above the important $17 per ounce resistance level early this week.

While the Silver futures and contract paper markets declined, the physical market for investment quality Silver products showed heavy demand. Demand for U.S. Silver Eagles, Silver trade units, and Silver dollars, caused many dealers around the globe to sell out.

The Silver/Gold ratio has decreased to 71.55–to–1.

Today: This morning Silver continued to find strong buying at the $16.50 per ounce level. Silver really needs to move back above the $17 per ounce resistance level to regain its long term move higher.

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 30% 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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Categories: Weekly Market Report