Weekly Market Report 6/6/16

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

Reversing Gold flows could lead to Perfect Storm

The global market for negative yielding debt is worth a colossal $10 trillion

Miner sees Silver price surging ninefold as global gadgets boom

Gold traders pay most in years to keep big bullish bets alive

Market watcher says interest rate hikes no fear for Gold investors

Gold rises to snap biggest losing run in a year

This Week’s Headlines:

Gold
Silver
Long Beach Coin Expo this week
Recommended investment commitment and diversification

GOLD

Last week was a very important directional week for the Gold price. After reaching a U.S. low of $1,201.50 on Tuesday (after the Memorial Day holiday) Gold traded in a narrow $1,208/$1,218 per ounce range until Friday. After a $50 price correction (on news that the Federal Reserve may increase interest rates in June/July) the Gold price consolidated above $1,200 last Wednesday and Thursday.

Last Friday, Gold closed at $1,242.90, up $26.20 per ounce (2.15%) for the week and up $182 (17%) since the beginning of 2016. Friday’s Gold/Silver rally was caused by the U.S. Labor Department’s report that the nonfarm payrolls increased by only 38,000 jobs last month, the smallest gain since September 2010. In May, manufacturing and construction employment fell sharply, suggesting slippage in the labor market that will make it harder for the Federal Reserve to raise interest rates. After the Labor Department statement, Goldman Sachs said "there is a zero percent chance the Fed will raise interest rates in June." This news was a negative for the U.S. Dollar, but a stimulus that the precious metal markets needed.

#2 on my list of "Gold’s 12 most bullish fundamentals" is global negative interest rates. It was reported last week that in an effort to stimulate the world’s economies, government central banks offering negative interest debt have reached over 10 trillion U.S. Dollars. Gold ownership is a major beneficiary of negative interest rates. To read more, click the following link...
The global market for negative yielding debt is worth a colossal $10 trillion.

This year Gold has rallied from $1,060 to a high of $1,306 per ounce, with a correction back to the $1,200 support level. This successful test of the long term support level represents a great opportunity to add to your precious metal holdings.

Today: During Asian trading this morning, Gold took its first June attempt to break above the $1,250 per ounce level. Now Gold is trading in a tight $10 high/low trading range between $1,239 and $1,249 per ounce.

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SILVER

Silver closed at $16.36 last Friday, up $0.10 for the week, after reaching a low of $15.83 last Wednesday. Silver started the year at $13.78 per ounce, rallied to a 2016 high of $18.06 on May 2, and sold off (along with Gold) to a low of $15.83. This was a 50% retracement from the 2016 high, before starting its recovery last week. Although last Friday’s rally was disappointing, Silver is still up $2.59 (18.75%) for the year. Silver needs to move back above the $17 per ounce level to regain its bullish sentiment.

Last week the Silver/Gold ratio increased to 75.95-to-1.

Today: Silver found a sizeable amount of bargain buyers this morning when it reached a low of $16.34 per ounce. Silver quickly moved up about a dime and has been trading actively at that level since.

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Long Beach Coin Expo this week

This week, I will be in Long Beach, California for the Long Beach Coin Expo. If you are in the Long Beach Convention Center area this Thursday or Friday say hello, we are at table #826. This rare coin convention should be well attended and I am hoping to fill our clients’ rare coin want lists. As the high-end certified investment quality rare coin market soars, I am seeing increasing demand from our clients for the CoinStats recommended Gold and Silver coins.

For the past year I have been reporting from the major coin conventions that demand for investment quality Gold and Silver U.S. rare coins has continued to grow, while most dealer’s inventories have been at very low levels. These fundamentals are an outstanding harbinger of much higher prices coming very soon. Many of the dealers who attend these conventions have reported raising both the ask and bid prices for many of their Gold and Silver rarities.

If you haven’t already sent in your rare coin want list to me or David, please email me your list of coins needed ASAP.

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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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If you want to be updated on what is happening in the Gold, Silver, and Rare Coin markets any weekday, our company offers a daily blog Monday through Friday at www.stupplerblog.com

All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the 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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