Weekly Market Report 6/13/16

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

U.S. budget deficit expands in May, hits 2.6% of GDP over past year

Gold: it’s not just a fed trade

Gold coins and bars see UK sales rise on BREXIT “nerves”

The future of Gold: a very long-term uptrend

Another Gold bull market to begin in 2016? It’s possible

This Week’s Headlines:

Gold
Silver
Long Beach Coin Expo
Recommended investment commitment and diversification

GOLD

Last week was terrific for precious metal investors. Gold closed the week at $1,271.50 per ounce, up $28.60 for the week, $54 for the month, and $211 (19.92%) for the year. Last week, Gold broke above the key $1,250 resistance level and consolidated its gains, moving above $1,270 per ounce. Next week, we should see additional base building, followed by a move towards the $1,300 per ounce resistance level. The bullish trend is firmly in place and Gold will break above the 2016 high of $1,306 very soon. I strongly recommend adding additional Gold to your holdings NOW.

News was released on Friday stating that the U.S. government’s budget deficit expanded in May, driven by a continued rise in spending and a decline in corporate profits that has strained government revenues. Federal spending exceeded revenues by $53 billion in May, the Treasury Department said in a monthly update Friday. Over the past year, the deficit totaled $479 billion, up 16% from a year earlier, reaching an unbelievable $19.3 trillion. To read more about this, click on the following link: U.S. budget deficit expands in May, hits 2.6% of GDP over past year.

Today: During Asian trading this morning, Gold hit a high of $1,287 per ounce. Today’s precious metal rally was caused by a weaker U.S. Dollar and weaker European stock markets. These weaknesses are based on concerns about a central bank meeting this week, and the June 23 vote on whether Britain should leave the European Union.

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SILVER

Silver closed at $17.33 last Friday, up $0.97 (5.9%) for the week. Silver reached a low of $15.83 on June 1. Silver is now up 25.76% since the start of 2016, tested support last week, and will continue its bullish move. I look for Silver to break above its 2016 high of $18.06 by the end of the month.

Bloomberg reports that Silver is “acting like Gold on steroids” as it approaches 2016 highs. Read the entire article by clicking the following link: Silver acting like ’Gold on steroids’ as assets near record high.

Both paper and physical Silver demand remains strong worldwide. Many official and private mints are reporting record demand, with shortages of supply. This year the U.S. Mint has been averaging monthly sales of over 4.5 million ounces of 1oz .999 Silver Eagles. Today, the U.S. Mint sales for 2016 are now 24.327 million 1oz Silver Eagles, which is higher than last year and on pace to hit an all-time record of 50 million.

Last week the Silver/Gold ratio increased to 73.37-to-1.

Today: Silver hit a high of $17.47 per ounce today as it starts its move to the $18 per ounce resistance level.

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Long Beach Coin Expo

Last week, David and I attended the Long Beach Coin Expo. This rare coin convention was attended by thousands of coin dealers, collectors and investors. It was nice to see the aisles full with rare coin buyers. Many of the dealers who attended this convention reported low inventories and that they were raising both the bid and ask prices for many of the most popular Gold and Silver rarities. This is an excellent indication that we have a firm rare coin market and the upcoming ANA’s World’s Fair of Money show, starting on August 10, 2016 in Anaheim, should be very active. I will be providing more information on the World’s Fair of Money in my July market reports.

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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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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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