Gold And Silver Getting Ready For Their Year-End Rally
| Stuppler & Company is proud to provide our clients this Weekly Market Report (WMR). The report gives you my overview of the prior week’s precious metal and rare coin market activity and news. In each WMR I share the current status of Gold and Silver along with their support and resistance levels. |
|
|
|
|
This Week's Headlines: |
On all five trading days last week, Gold closed between $1,901 and $1926 per ounce. That is an excellent example of building a base and making $1,900 an important support level. Market analysts continue to focus their attention on the three key issues. The value of the U.S. dollar, a legislative COVID-19 aid stimulus package, and who will be elected president next month. All three of those items have an element of uncertainty, and the markets don’t like dealing with uncertainty.
I still believe we will see a new all-time high for Gold by the end of the year, with the high possibility of $2,200 per ounce. With Gold at the current $1,900 level, I am trying to build up my BU pre-1933 Gold inventory, premiums on these BU coins continue to be very attractive. If you remember, during the August Gold rally, premiums skyrocketed on pre-1933 BU Gold coins, because of the demand and shortage of supply.
There is a small possibility of Gold reaching a 1-month low of $1,850, to clean out the weak hands, before the Gold rally starts. However, acquiring Gold at the current price level has a great risk-reward advantage.
Today: This morning concerns about a second COVID-19 European lockdown coming has caused an increase in the value of the U.S. Dollar Index. That increase with the lack of any progress in Congressional stimulus negotiations has put pressure on our equity markets. Surprisingly, Gold has shown excellent price support.
Last week, Silver closed between $24.63 and $25.20 per ounce on average trading volume. Last Friday, Silver closed at $24.63 per ounce, up $0.27 for the week. Silver is showing a firm base on good demand for physical metal as well as paper Silver. The Silver-to-Gold ratio moved lower last week, closing last Friday at 77.21-to-1.
Goldman Sachs and Citibank are both calling for a substantial move in the price of Silver (see articles above). For a number of good reasons, Citibank believes it is not out of the question to see Silver reach US$50/oz or US$100/oz in the coming years. Goldman Sachs believes, based on current polls, that Biden will be the next President and the Democrats will take control of both houses of Congress. If that happens, Goldman believes that “Democrats will unleash huge spending programs unimpeded by any opposition in Congress.”
Goldman also believes the U.S. dollar needs to be shorted because it will decline if Trump isn’t re-elected. A huge Congressional stimulus spending program and a lower U.S. dollar is a recipe for much higher precious metal prices.
Today: Silver tested the $24 per ounce support level in Asian trading this morning and held. Demand for physical investment products is strong and premiums are still excellent.
| Thank you Barry + David StupplerMintStateGold.com by Stuppler and Company 1-888-454-0444 |
|||
Barry Stuppler |
David Stuppler |
||
 |
|||
| All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of 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. |
|||
