U.S. Dollar stays strong and Gold/Silver prices remain weak

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:

Platinum to Gold Price Wider Than Ever as Dollar Strength Knocks Metals

Silver Prices Are Near Their Bottom, and That’s a Good Thing

Turkey - Another Country Significantly Raising its Gold Reserves

Russia and China are Stockpiling Gold

U.S. Gold Exports to London Surge

 

This Week’s Headlines:

Gold
Silver
Recommended investment commitment and diversification

 

GOLD

June was truly an ugly month for Gold investors. Gold started the month at $1,301 and ended at $1,251 per ounce, a $50 decline. Why? The major issues are a combination of a decline in investor demand for Gold, and an increase in the value of the U.S. Dollar. While individual investors and many financial institutions have lost interest in physical Gold coins and bars, that demand is being replaced by many of the world’s largest Central Banks. The World Gold Council revealed that first-quarter identifiable Gold investor demand slowed to a 10-year low of 973.5 tons.

Central Banks know how to buy tons of Gold during periods of market weakness, while selling a few thousand ounces to meet demand on rallies. This strategy has allowed Central Banks to add hundreds of tons of Gold to their nations’ reserves using overvalued U.S. Dollars. I expect to see a substantial increase in Central Bank purchases within the first ten days of July, especially with Gold at the current price. I believe June Central Bank purchases will be the highest of the past few years.

Why is the U.S. Dollar currently over-valued? Asian concerns about a trade war with the U.S. have focused their attention on the value of the Chinese Yuan. Many knowledgeable Chinese investors feel that China will devalue the Yuan to gain a major advantage in a trade war. These financial institutions and major investors have been buying the U.S. Dollar and short-selling the Chinese Yuan.

What will it take for Gold to regain its bullish sentiment? China must devalue its Yuan and investors cover their profitably short position in the Yuan, or, Trump and the Chinese government must come to an agreement on trade tariffs.

While we are waiting for these events to happen, this is truly a great opportunity to add to your Gold holdings at what is possibly the lowest Gold price of 2018. In addition, due to the lack of physical demand, premiums on pre-1934 Gold U.S. and foreign coins are at 20 year lows.

Today: Gold continues to trade in a narrow $10 high/low range today. Gold has traded from a low of $1,244.50 to a high of $1,254.50 per ounce. The U.S. Dollar was strong in Asian and European markets and has rolled into the U.S. higher.

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SILVER

Last week, Silver reached a 2018 low of $15.95 per ounce, closing the week at $16.10 per ounce. As long as Gold remains in a downtrend, Silver will continue in the same direction. $16 per ounce is a key long-term level for Silver, and inflation is a key component of any Silver rally. Many economists believe we should start seeing signs of inflation if we have a trade war or if the economy continues its recent strength.

The Silver/Gold ratio has increased to 77.45-to-1.

Today: Silver broke below the key $16 per ounce level in early Asian trading. It then stayed below $16 in the European and U.S. Markets. Silver reached a low of $15.81 this morning in U.S. trading.

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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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REMEMBER THE BLOG

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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