Gold and Silver remain in a short-term bear trend

By Barry Stuppler

| June 25 2018

Current Rare Coin Listings Updated

Current listings for Morgan Dollars
https://www.mintstategold.com/silver/us-mint/morgan-silver-dollar.html

Current listings for Peace Dollars
https://www.mintstategold.com/silver/us-mint/peace-silver-dollar.html

Current listings for $20 Gold Saints
https://www.mintstategold.com/gold/us-mint-1/saint-gaudens.html

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

Russia Buys 600,000 oz of Gold in May

China Yanks Money out of US

Russian Central Bank Diversifies Holdings Amid Geopolitical Risks

Platinum Jewelry Sales Strong In US and India In Q1, Says PGI

This Week’s Headlines:

Gold
Gold’s 12 most bullish fundamentals
Silver
Recommended investment commitment and diversification

GOLD

Last week was the second week in a row that the Gold price was on the defensive. Concerns about a possible trade war with China, Europe and many other countries has caused the U.S. currency to rally. The increase in the U.S. Dollar Index has put pressure on the precious metal markets. Gold closed last Friday at $1,267 per ounce, down $8 for the week, but well above the $1,250 per ounce support level.

The stronger U.S. Dollar Index, which is now at the 95 level, is keeping Gold from moving higher. Gold investors and professional traders have focused their attention on news of ongoing immigration policy and a potential trade war with China. Plus, I am seeing sizeable accumulation of physical Gold by the ton, which I believe is Central Banks taking advantage of the high U.S. Dollar rate to increase their Gold holdings. As we move into the summer months, domestic Gold buying is projected to be weak, and the premium on popular physical investment products should stay low. As we move into a period like this, I always want to remind Gold/Silver investors of the major reasons to take advantage of this buying opportunity.

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Gold’s 12 most bullish fundamentals

Worldwide physical demand for Gold from many of the largest Central Banks in the world has never been greater, as they dump U.S. Dollars and increase their country’s Gold reserves.
11 States have passed or currently have pending legislation to make Gold and Silver legal tender.
Global quantitative easing (money printing) in the U.S., China, Japan, and Europe is increasing debt at an unbelievable rate. The U.S. National Debt is now over $21 trillion.
The World Gold Council is reporting mine production falling dramatically as the cost of production rises.
Stockpiles of Gold in U.S. depositories continue to drop, as one country after another continues to repatriate their Gold. This could soon cause a Gold short squeeze.
Uncertainty over many of President Trump’s policies and actions is causing extra demand for physical Gold investment products around the globe.
Chinese investors, the world’s most aggressive Gold buyers, are switching out of equities into physical Gold and Silver. Gold buying is continuing to grow.
Both the Iranian and Syrian problem could be explosive, and North Korea is still a question mark.
U.S. M2 money supply is accelerating, doubling from 6.5 billion to 13 billion in the past 10 years. After growing at 6% for the last couple years, it has now grown to 8½% for the past year. This will lead to serious inflation and a much higher Gold and Silver price within the next 12 to 18 months.
Many precious metal professionals and analysts strongly believe that China is accumulating massive amounts of Gold in an effort to replace the U.S. Dollar (as the world’s reference currency) with the Chinese Yuan. If this happened, it would diminish the value of your U.S. Dollars. In 2016, the International Monetary Fund (IMF) formally added the Chinese Renminbi to the basket of reserve currencies. If the Renminbi became the world’s reserve currency, there would be a dramatic increase in the price of Gold valued in dollars.
In the Basel III agreement, which is being implemented by the world banking system between 2017 and 2019, Gold has been upgraded this year from a Tier III asset to a Tier I asset. This will encourage many large banks to increase their Gold holdings and make loans on Gold.
At the beginning of 2017, over 100 million Muslim investors began adding Gold to their holdings. A new Sharia Gold Standard was announced at the World Islamic Banking Conference in 2016.

Today: Gold is trading in a narrow $8 High/Low range from $1,264 to $1,272 per ounce today. As the president talks up new trade tariffs, the Dow Jones is down almost 400 points, which the U.S. Dollar Index holds around 94.

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SILVER

Silver spent most of last week trading between $16.30 and $16.45 per ounce, below the important $16.50 level. Trading volume on the major commodity exchanges has lightened up, as the price is locked in a tight range. On rallies above $16.50, there is professional short-selling, which is to be expected when Silver is on the defensive. Silver closed last Friday at $16.44, down $0.02 for the week.

Today: Silver is treading water this morning, after reaching a low of $16.25 in early trading. For most of the day, Silver has traded between $16.30 and $16.35 per ounce. The Silver price is definitely looking for direction from Gold.

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 40% of investment capital

Diversification: Gold 55%, Silver 35%, 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.

Categories: Weekly Market Report