Gold And Silver Tests Recent Lows – January CoinStats Available
| 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: |
Last Monday to Thursday, Gold started 2021 trading between $1,908 to $1,954, building a firm base above the key $1,900 per ounce resistance level. Then came Friday, and a combination of negative issues all hit the market at the same time. A higher U.S. Dollar Index (above 90) and 10-year interest rates moving to a six-month high (1.10%) caused the Gold price to break below the important $1,900 level. I didn’t see this coming, as I would have looked for the sell-off when Gold broke $2,000 again. After breaking the key $1,900 support level, commodity traders started short-selling both Gold and Silver. While Gold was moving lower, a report that a Central Bank sold Gold last month caused increased selling, and Gold broke below the $1,850. Gold reached a low of $1,827 per ounce before seeing sizeable buying. As we rolled into the close of the week, many of the short-sellers covered their sales and the price moved back to the $1,850 level.
Last Friday’s Gold trading wasn’t unique, as both commodity houses and floor traders are always looking for an opportunity to make a quick profit. They have multiple trading algorithms and software that identify breaks in key support and resistance levels. These algorithms are looking for short-term trends that can be profitable as traders rarely want to be at risk for more than a day or two.
The Chicago Mercantile Exchange (CME) is the primary precious metal trading exchange in the United States. Every workday, billions of dollars worth of commodities are traded on the CME. Investors purchase on margin hundreds of commodities, including all the precious metals. The CME with other similar exchanges around the world set the price for most commodities. Over my 50-year career in the precious metal markets, I have made friends with floor traders and commodity house executives.
This drop in the Gold price has all the markings of a major cleanout of smaller precious metal speculators. Gold futures speculators who own Gold contracts will be receiving margin calls today. Smaller investors may be forced to sell the contracts they own and take the loss, while the larger traders will be fine. Once they are gone, the professionals will be in control, and I believe we will see higher Gold and Silver prices.
I have seen numerous cleanouts in the past and a good example was March of 2020. On Wednesday, March 11, Gold closed at $1,642 per ounce. During the next three trading days, Gold dropped to $1,486, a decline of $156, causing massive margin calls. By March 24, Gold rallied over $210, which took the Gold price back to $1,660 per ounce, on its way to over $2,000 by August.
Right now, the bears are in control of the precious metal markets, but that will be short-lived. They know that all the major fundamentals favor much higher Gold prices. The U.S. dollar is heading lower and trillions of dollars’ worth of stimulus are on the way, and the Federal Reserve continues to be accommodating to the financial markets. The current Gold price represents an extraordinary opportunity, as I continue to believe we will see Gold at $2,200 by March and $2,500 by year-end, another $600 increase I expect for 2021.
Today: This morning on Asian and European commodity exchanges the margin calls to Gold contract owners went out. This caused the price of Gold to reach a low of $1,817 before the stronger buyers jumped in. The Gold price needs to spend a few days around or above the key $1,850 level to build confidence with new and long-time investors. That would confirm to me that this decline was the final clean out before a major rally.
As Gold sold off on Friday, Silver broke below the $27, $26, and $25 support levels. Silver reached a low of $24.48, down $2.72, before seeing large bargain buying (including myself). By day’s end, Silver moved back to $25.50 on short-covering and bargain buying. Silver, at a spot price of under $25 is an extraordinary bargain, especially if you believe that the coming stimulus legislation of a trillion of dollars will lead to inflation by year-end. Remember, Silver is the ultimate inflation hedge, and solar and 5G demand will only fuel higher prices. I believe 2021 will be a very profitable year for Silver investors.
Today: Silver investors also received margin calls this morning, pushing the Silver price to a low of $24.30 per ounce this morning. At that level bargain buyers and floor traders stepped in and the price quickly moved above the key $25 per ounce level. A few trading days of base building above $25 would be very bullish for the market.
I’m proud to offer the January 2021 version of CoinStats, which has been updated with plus grades and other new features. CoinStats for January 2020 offers six different series: $20 Gold Saint Gaudens, $20 Gold Liberties, $10 Gold Indians, Morgan & Peace Silver Dollars, and the Walking Liberty Half Dollars.
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 2021 version of CoinStats has all the populations and prices from PCGS. NGC populations and registry information have been omitted. The reason for this change is over 80% of my clients only purchase PCGS coins, so I wanted to focus on PCGS data only. A new addition is 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.
2020 was an excellent year for numismatics. Most dealers report record sales of the very popular U.S. Silver and Gold coin series. U.S. $20 Gold Saints and $10 Gold Indians were particularly popular with new and established collectors. Many on-line auction sites and traditional auction companies have picked up thousands of new collectors. Recent auctions have shown record demand and higher prices. I expect to see 2021 as a great year for numismatic collectors.
Mint State Gold is proud to offer advance ordering for the popular 2021 Gold and Silver items. This includes Brilliant Uncirculated coins and PCGS/NGC MS70 graded American Gold Buffalos, American Gold Eagles, and American Silver Eagles.
Click the links above for each series or our Pre-Sale area for the total range and updates.
*All prices include FREE SHIPPING and INSURANCE. Limited quantities available. Labels presented may differ from actual grading service release.
Anticipated delivery of these coins is approximately late January to mid-February (based on U.S. Mint release dates and PCGS/NGC turn-around times).
These offers are available for a limited time by clicking the links above, calling 888-454-0444, or emailing [email protected]. Premiums subject to change based on current market conditions.
For special label requests please call 888-454-0444 or email [email protected].
Act now! Pre-order quantities are limited. Call 888-454-0444 or e-mail [email protected] to order today.
| Thank you Barry + David StupplerMintStateGold.com by Stuppler and Company[email protected]1-888-454-0444 |
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Barry Stuppler |
David Stuppler |
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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. |
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Gold & Silver See Profit Taking After The Recent Rally ByMay 16 2024
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