Gold And Silver Looking Good For 2022 – Jan. CoinStats
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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. |
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This Week's Headlines: |
Looking back on 2021, it wasn’t a good year for Gold bullion investors with Gold dropping $66 per ounce (-3.61%) from year-end 2020 to year-end 2021. But if you were diversified into investment quality rare coins, as I have recommended below, the year would have been much better. The PCGS.com CU-3000 rare coin index shows 2021 with a 19.75% increase, and based upon what I’ve seen, I thought it would have been higher. See CoinStats below for more info.
Last Tuesday, Federal Reserve Chairman Powell sounded upbeat on the U.S. economy and employment and promised to get inflation under control. His testimony before the U.S. Senate provided strength to the stock market and precious metals. Last week, the U.S. Bureau of Labor Statistics announced that the December consumer price index (CPI) raised 7%, excluding food and energy. The 2021 CPI increased 5.5%, the largest increase since 1991. Interestingly, the CPI announcement excluded food and energy. Food was up 6.3% and energy was up 29.3% for 2021.
We need to stop worrying about when inflation is coming, IT’S HERE. I believe this news is the harbinger for the beginning of serious inflation numbers worldwide and a floor for the Gold price. After trading above and below the key $1,800 level for the past six months, this was the badly needed Gold consolidation and it is over. Gold’s key $1,800 per ounce level should be the floor for 2022, and although we could set another test of this level, we are going higher from here.
I don’t believe I’m being overly optimistic, and based on both the current fundamentals and technical indicators, I see a new all-time high for the Gold price within the first six months of the year.
Today: With today’s spike in the 10-Year Treasury interest rate, moving over 1.85%, Gold has been on defense since the opening of the market. Gold initially sold off to $1,805, but has been rallying higher since that low.
Last week, Silver spent most of its time trading above and below the key $23 per ounce level. The CPI inflationary announcement was the key to Silver’s $0.51 per ounce increase last week. Silver reached a high of $23.32 per ounce last Friday before closing the week at $22.91, up $0.51 per ounce. The $23 per ounce support level is important to the short term direction of Silver. Last year, the Silver price underperformed expectations and I expect to see Silver lead the precious metals this year. Right now I believe Silver will stay above $23 per ounce and with a strong Gold price, Silver needs to get to the next resistance level of $24 per ounce. The Silver-to-Gold ratio is currently at 78.61-to-1.
Today: Silver has taken a leadership role in precious metal trading today, rallying $0.70 to a high of $23.72 per ounce before seeing some short-term profit taking. What we are seeing today is that the Silver price is more affected by wage and price inflation than higher interest rates.
I’m proud to provide the January 2022 version of CoinStats free of charge for our clients. It has been updated with current prices and populations for regular and plus grades. Other features on CoinStats for January 2022 are six different series: $20 Gold Saint Gaudens, $20 Gold Liberties, $10 Gold Indians, Morgan & Peace Silver Dollars, and the Walking Liberty Half Dollar.
The CoinStats report provides a list of my recommended certified U.S. Gold and Silver coins which are found listed on the Best Value page. These are not the modern issue bullion coins or low-grade circulated coins. These are PCGS certified MS63 or higher Gold and Silver U.S. rare coins, dated prior to 1948, which have a proven track record of appreciation and also offer excellent liquidity.
The January 2022 version of CoinStats has all of the populations and prices from PCGS. I have also included information on increases in all PCGS grade populations from issue to issue, plus increases in popular PCGS Registries at the bottom of the Best Value page. 2021 was an excellent year for investment quality rare coin owners with PCGS.com’s CU-3000 showing a 19.75% increase for 2021. If you wish to receive a copy of the current CoinStats, just reply in the subject line with the series requested.
