Weekly Market Report 8/1/16
Links to recent informative articles on precious metals and rare coins:
The Single Most Important Reason Gold and Silver Should Keep Rallying
Russia Adds 19 Tons of Gold to Reserves in June
Sharia Law Change Could Add 1.6 Billion Gold Investors
GOP Platform Includes Proposal to Study Return to Gold Standard
Trump Could Push Gold Prices $500 Higher
When Owning Gold Was Illegal in America And Why It Could Be Again
Gold
Silver
Rare Coin Report
Recommended investment commitment and diversification
July was an excellent month for Gold owners. After testing the support level and reaching a low of $1,310 per ounce, Gold closed the month at $1,357 per ounce. Gold was up $37 per ounce for July and up $297 (28%) since the beginning of 2016. What is a really great bullish fact for the Gold price during the month of July? Its trading volume and the fact that it is holding above the long term support levels. Historically, Gold’s trading volume during the summer months is low as many traders, investors and jewelry manufactures are on vacation. Hopefully, this increase in volume and demand will remain strong for August as the price approaches the next resistance level of $1,400 per ounce.
Last month, both the Democrats and Republicans held their conventions and selected a presidential nominee. Other than the fact that Donald Trump has Gold in his investment portfolio, there was very little information provided about Gold or a possible Gold standard. However, the Republican Platform includes a proposal to study a return to a Gold standard.
See following links to articles:
GOP Platform Includes Proposal to Study Return to Gold Standard
Trump Could Push Gold Prices $500 Higher
When Owning Gold Was Illegal in America And Why It Could Be Again
I believe it doesn’t make much of a difference to the Gold price which candidate is elected president. The bullish fundamentals for a major increase in the Gold price are in place. Plus, there are so many other major economic/political issues in both parties’ platforms, that a Gold standard, Gold reporting, or confiscation isn’t going to be discussed for years.
Today: This morning Gold has traded above and below the key $1,350 support/resistance level. Demand continues to be strong for both physical Gold and futures contracts.
Silver had a better July than Gold, moving from $18.62 to $20.38 per ounce. That is an increase of $1.76 (9.45%) in just one month. Silver is up $6.61 (47.9%) since the beginning of 2016. Since the beginning of July, Silver has traded numerous times above and below the key $20 per ounce resistance/support level. During July, Silver reached a high of $21.23 and a low of $19.27 per ounce. Silver’s trading during July was an excellent example of consolidation after a sizeable price increase.
I look for more consolidation in August and the early part of September, with Silver trading between $19.30 and $22 per ounce. Then, during the last quarter of 2016, I believe we will see the Silver price reach $25 per ounce.
Last week, the Silver/Gold ratio dropped to 67.21-to-1.
Today: Silver reached a low of $20.28 this morning. At that price, major buying hit the Asian markets, driving the price to $20.50 per ounce.
Between August 9th and 13th, the largest rare coin convention of the year will be happening. The American Numismatic Association will be hosting the World’s Fair of Money in Anaheim, California.
This convention will have over 1,000 dealers and tens of thousands of collectors/investors in attendance. My son David and I will be at booth #439 for the entire convention. If you are in the area, please stop by and say ’Hi’ and enjoy seeing all the interesting numismatic exhibits. I recommend you update your numismatic want list and email it to me by Wednesday, August 3rd.
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.
