Gold Ends 2021 At $1,827 And Silver At $23.33
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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: |
As we start a New Year, let’s look back on 2021. Gold started the year at $1,893 and reached a high of $1,962 on January 6th. Gold hit the yearly low on March 8th of $1,673 per ounce, then spent the balance of the year building a firm base, trading between $1,700 and $1,850 per ounce. Gold closed 2021 at $1,827.10 per ounce down $66 (3.5%) from the 2021 high, but up $154 from the low. Considering all the government and Central Bank spending and indications of inflation on the way, it was a disappointing year for Gold/Silver bullion investors. It's important to remember that Gold was coming off two banner years. The price went up 19% in 2019. It went up another 24% in 2020.
Since American investors look at the price of Gold/Silver in U.S. Dollars, the 6% increase in the value of the Dollar versus other currencies didn’t help. As the U.S. continued to spend trillions of dollars in aid, and the Federal Reserve provided serious funding for Wall Street, I was convinced Gold would move over $2,000 by year end, but it didn’t happen.
I need our American clients to remember that Gold is real money. The reason the Gold price goes up is to reflect the loss in purchasing power of the U.S. dollar. In other words, the rising price of Gold is correlated inversely to the U.S. dollar’s actual purchasing power loss. History has shown us that Gold moves dramatically higher after the effects of inflation have settled in and have taken their toll – not before and not in anticipation of those effects. We have just started to see the effects of higher product/services and wage inflation.
As we start 2022, demand for popular numismatic and bullion Gold and Silver coins has never been higher. The U.S. Mint produced many exciting new semi-numismatic coins that stirred fresh demand from new collectors. The 100th Anniversary 2021 Morgan and Peace MS70 Six Piece Silver Dollar Set became our largest selling new issue coin. The numismatic coin market showed sharp increases last year, with many of the rare Gold and Silver coins selling for record prices. With very little supply of coins available, I don’t see these markets easing up in 2022.
I would like to wish all our clients a happy and profitable new year.
Today: A sharp move higher this morning for both the U.S. Dollar and interest rates put precious metals on the defensive. Gold briefly broke below the key $1,800 level, reaching a low of $1,798 before moving back above $1,800 on heavy volume.
The Silver price moved above the key $23 resistance level last week, closing the year at $23.33 per ounce. Silver started the year at $26.33 per ounce, reached a high of $30.35 on Feb. 3rd, and spent the balance of the year trading under $30 per ounce. Silver did show extraordinary support when it reached the yearly low of $21.41 per ounce on Dec. 15th. Silver at the current price level is an extraordinary bargain, especially with a Silver-To-Gold ratio at 78.87-to-1.
Today: Silver followed Gold lower, breaking below the key $23 per ounce level and reaching $22.65 before seeing bargain buying. Demand and premiums remain high on many of the popular Silver investment coins.
