Weekly Market Report 8/22/16
Links to recent informative articles on precious metals and rare coins:
Why investors should consider a Gold position
UK’s post-Brexit gold surge to near record highs emphasizes safe haven status
Gold likely to average $1,475 an ounce during Q4 2016
Lord Rothschild: Why I’ve sold hundreds of millions of pounds worth of shares, and bought gold
Gold
Silver
Recommended investment commitment and diversification
Gold has traded between $1,335 and $1,374 per ounce since the beginning of the month. After a 26% increase for the year, August trading is a classic example of price consolidation. As we work our way through the summer months towards Labor Day, I believe the Gold price will now gradually work its way higher. Look for Gold to break above the $1,375 area within the next couple weeks, followed by an attempt to break above the key $1,400 resistance level in September.
Last Friday, Gold closed at $1,346.20 per ounce, up $3 for the week, but down $11 for the month. During the week, the Federal Reserve released their latest minutes showing that they are not likely to raise interest rates until later this year or early next year.
We do have a possibility of testing the $1,300 long term support level before the upward move continues. It is very common to see what is referred to as a Final Clean Out before a major rally starts. The clean out gives professional traders the ability to drive the price down on weak volume and quickly take a major long position ahead of a major rally.
Today: Gold traded down to a low of $1,330 per ounce this morning before finding bargain buying. Physical and contract Gold demand continues to be strong in Asian, Middle Eastern, and European markets
Last week, Silver tested the $20 per ounce resistance level four times, but could not close above it. Silver closed at $19.32 per ounce on Friday, down $0.39 per ounce for the week.
Based on recent trading activity, I believe Silver has a high probability of testing the $19 per ounce long term support level very soon. Like Gold, Silver could easily see a Final Clean Out, allowing professional traders to take on a large holding of Silver.
As of last Friday, the U.S. Mint sold 28,200,000 1oz 2016 .9999 Silver Eagles. July and August U.S. Mint sales were below the monthly sales average reached each month from January to June. However, it is normal to see a decline in sales during the summer months, especially with Silver trading at a higher price.
Last week, the Silver/Gold ratio dropped to 68.17-to-1.
Today: Silver broke down below the $19 per ounce support level this morning, reaching a low of $18.82 per ounce. For Silver to stay short term bullish it needs to rally back above the $19 level very soon.
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.
