Weekly Market Report 8/08/16
Links to recent informative articles on precious metals and rare coins:
Why Russia and China are buying so much Gold
Big players put money into the precious metal
Gold
Silver
Rare Coins Report
Recommended investment commitment and diversification
Last Friday the U.S. Bureau of Labor reported that the U.S. non-farm payrolls increased dramatically to 255,000 jobs in July. This news caused the U.S. Dollar and equity markets to rally sharply and Gold to sell-off. Traders felt that the increasing employment numbers make it more likely that the Federal Reserve will raise interest rates later this year. Gold dropped $21 on Friday, ending the week at $1,344.40 per ounce, down $13.20 for the week.
Last Thursday there was an interest rate cut by the Bank of England (BoE) from 0.5% to 0.25%. This was the first cut in seven years and a direct result of the economic crisis caused by BREXIT. This move by the BoE reaffirms Gold as the go-to asset in times of economic crisis, as the Gold price reacted positively.
Today: Gold tested the $1,330 per ounce level this morning and held, reaching $1,329.70 per ounce. Gold has traded in a narrow $9 range for most of the day.
Silver followed Gold lower on Friday, reaching a low of $19.72 before sizeable buying appeared. Silver was down $0.57 for the week, closing at $19.81, just below the important $20 resistance/support level. Silver closed above $20 per ounce for six trading days in a row, before breaking below $20 last Friday after the U.S. non-farm payroll report.
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 67.84-to-1.
Today: Silver is also trading in a narrow price range, holding firmly above $19.60 per ounce.
This week I will be attending the largest rare coin convention of the year. 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 as soon as possible.
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.
