Weekly Market Report 7/18/16

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

$2,000 Gold is a Real Possibility -- Here’s Why

Gold Prices and Central Bank Policy

The World is walking from Crisis to Crisis: Why BofA sees $1,500 Gold and $30 Silver

 

This Week’s Headlines:

Gold
Best value in U.S. Gold bullion plus coins
Silver
What’s next for Silver?
July 2016 CoinStats is now available
Recommended Investment Commitment and Diversification

 

GOLD

Gold is officially in a consolidation phase, trading within a tight range while building a firm base above $1,300 per ounce. Gold traded in a $20 high/low range the past few trading days. $1,320 per ounce appears to be the short term support level, with Gold seeing resistance at $1,350. Historically, Gold trades in a narrow range in the summer months. Remember, any significant bullish or bearish economic or terrorist news would have a dramatic effect on the Gold price during the summer months. As a reminder, Gold is up $267 per ounce (25%) since the beginning of the year, better than any other proven investment that I know.

Today: With little to no news affecting the precious metal markets, Gold is trading in a narrow $12 high/low range from $1,335 to $1,323 today. Gold continues to consolidate its 25% increase this year, while building an excellent base for the next leg higher, $1,400 per ounce.

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Best value in U.S. Gold bullion plus coins

As the Gold price increases, we are seeing a number of new investors focusing their attention on many of the undervalued U.S. numismatic Gold bullion plus coins. Popular Gold items like U.S. $20 Gold Saints and Liberties in brilliant uncirculated (BU) to MS66 condition are trading at ridiculously low premiums compared to their Gold content. With Gold up 25% this year, BU $20 Gold Saint Gaudens and Liberty premiums have not kept up, with only an 11.50% premium over the current spot Gold price. Because of the scarcity of these hundred-year-old uncirculated coins compared to popular Gold bullion coins, these numismatic bullion plus coins have historically traded at over a 40% premium. The higher certified grades (MS63 to MS66) are also at very attractive low premiums right now.

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SILVER

Silver tested the very important $20 per ounce support level four times last week and held. Both contract futures and physical demand are still holding at respectable levels. Silver closed on Friday at $20.16 per ounce, up $0.07 for the week and up $6.39 (47%) since the beginning of 2016.

Last week, the Silver/Gold ratio dropped to 65.83-to-1.

Today: Silver has traded above and below the $20 support/resistance level all day. Today we had a low of $19.73 and a high of $20.27 per ounce. $20 is an important level and it may take a little more time to find the needed support to move higher.

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What’s next for Silver?

Considering the July 5th Silver high of $21.23 and last week’s low of $19.96 per ounce, Silver needs some time to consolidate its price above $20 per ounce before the rally continues. $20 an ounce is a very important long term resistance and support level for Silver. Last week, Silver established a new base, closing above $20 per ounce all five consecutive trading days. We could see another week of Silver trading below and above $20 per ounce. But, I look for a move towards $22 per ounce within the next month. The next short term resistance level is $22, followed by the next long term resistance level of $25 (my target for year-end 2016.)

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July 2016 CoinStats is now available

Our numismatic CoinStats report is the best investment tool for rare coin investors. CoinStats is an in-depth statistical analysis of popular rare coin series that allows you to identify the best values in certified rare coins. I am proud to offer this unique and informative tool exclusively to our clients. CoinStats has been updated for July 2016 and is now available. Six different series are available: $20 Gold Saint Gaudens, $20 Gold Liberties, $10 Gold Indians, Morgan & Peace Silver Dollars, and the Walking Liberty Half Dollars.

The CoinStats report provides a list of my recommended certified U.S. Gold and Silver coins which are found listed on the Best Value page. These are not the modern issue bullion coins or low-grade circulated coins. These are PCGS/NGC certified MS63 or higher Gold and Silver U.S. rare coins, dated prior to 1948, which have a proven track record of appreciation and also offer excellent liquidity. To receive the latest CoinStats analysis, just insert the word CoinStats on the subject line and email me which of the six series you would like to see.

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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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