Weekly Market Report 8/15/16
Links to recent informative articles on precious metals and rare coins:
Gold Has Now Entered Its Strongest Seasonal Period
Gold
Silver
Rare Coin Report
Recommended investment commitment and diversification
For most of last week’s trading, the Gold price stayed in the $1,335 to $1,350 range. Gold closed last Friday at $1,343.20 per ounce, down $1.20 for the week on average volume. After Gold’s 25% increase since the beginning of the year, it is very bullish for the price to be in a consolidation phase during the low volume summer months.
Low trading volume on the world’s commodity exchanges is very common during the summer months. With low trading volume, the Gold/Silver prices are very sensitive to any economic news that would affect a possible change in future Federal Reserve interest rate policies. I still continue to believe that the Federal Reserve will not raise interest rates for the next four months; well after the presidential elections.
Based on historic trends, I expect that the Gold price should stay in the current trading range until Labor Day. After Labor Day (Sept 5, 2016) I look for the Gold price to move above the $1,370 level, getting ready for the first attempt to break above the $1,400 resistance level. I still think Gold will reach or surpass $1,500 per ounce by year end. With Gold at current levels, this is an excellent time to add to your Gold holdings.
Today: Gold tested the $1,335 per ounce level this morning and held. For most of the day Gold has traded in a narrow trading range of only $9.
Last week Silver traded above and below the important $20 per ounce resistance/support level, closing Friday at $19.70 per ounce, down $0.11 for the week. Like Gold, after the 45% increase in Silver since the beginning of the year, it is very bullish that the price is in a consolidation phase during these low volume summer months.
I look for more consolidation until Labor Day, with Silver trading between $19.30 and $22 per ounce. Then, during the last quarter of 2016, I anticipate seeing the Silver price reach $25 per ounce.
Last week, the Silver/Gold ratio dropped to 68.17-to-1.
Today: In early trading this morning, Silver attempted to break back above the key $20 per ounce level. Silver briefly traded at $20.03 before sellers appeared, driving the price back down to $19.70.
Last week, David and I attended the largest rare coin convention of the year. The American Numismatic Association hosted the World’s Fair of Money in Anaheim, California. This convention had over 1,000 dealers and tens of thousands of collectors/investors in attendance. The convention was very exciting as prices were strong on the trading floor and at the two major auctions. The rare coin market is definitely looking bullish and it is very likely we will see a strong year-end, and a strong 2017.
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.
