Weekly Market Report 9/12/16
Links to recent informative articles on precious metals and rare coins:
More Disappointing U.S. Data Propelling Gold Towards $1,350
Avoid Paper Gold - "Gold Delivery" Refused by Gold Exchange Traded Commodity
Is $10,000 Gold on the Horizon? One Commodities Expert Says Yes!
Gold
Silver
Rare Coin Report
Recommended Investment Commitment and Diversification
Last week was very volatile for precious metal traders. Gold rallied to show a $27 per ounce increase on Tuesday, based on indications that the Federal Reserve would leave interest rates unchanged. Then, on Wednesday, Thursday and Friday, Gold declined $19.50 as positive economic data caused professional traders to sell on concerns that the Federal Reserve would raise interest rates. For the week, Gold closed up $7.80 per ounce, at $1,334.50 per ounce.
After Tuesday, as the Gold/Silver prices declined, the DJIA fell dramatically, down 453 points in Wednesday to Friday’s trading. That’s interesting because historically, when the DJIA increased, the precious metal markets declined. But now, both precious metals and the equity markets are more affected for the short term by any increase in interest rates by the Federal Reserve than other primary fundamentals. If the Federal Reserve does raise interest rates this month, Gold could see a quick test of its $1,300 support level, which would be an excellent opportunity to add to your holdings.
$1,350 per ounce continues to be a key short term price level for Gold. As we move out of the summer months, Gold will see stronger demand from jewelry manufacturers, hedge funds, and commodity traders. I still expect to see Gold reach $1,500 per ounce by year end and continue moving higher in 2017, regardless of who becomes our new president.
Today: This morning Gold opened lower while trading in a narrow $10 high/low range. Physical demand for Gold investment products is growing in Asian, European, and U.S. markets.
Silver pretty much mirrored Gold’s volatility last week. Last Tuesday, Silver reached a high of $20.22 per ounce, followed by hitting a low of $19.08 on Friday. The Silver price closed last Friday at $19.37 per ounce, unchanged for the week. Considering the 40% increase in the Silver price since the beginning of the year, I believe the summer price consolidation is very healthy for the long term. Once Silver firmly moves above the key $20 long term resistance level, I expect to see it quickly reach its July 5th high of $21.23 per ounce before the end of October.
Last week, the Silver/Gold ratio increased to 68.90-to-1.
Today: Silver reached a low this morning of $18.71 per ounce before finding bargain buying in Asia and Europe. Silver needs to move back above the $19 per ounce level to regain its short term bullish support.
Last week David and I attended the September Long Beach Expo, one of the last major rare coin conventions of 2016. Both the trading bourse floor and the auction were very active. Hundreds of the major rare coin dealers and thousands of collectors and investors were pleasantly surprised by the trading activity. Many dealers report a shortage of high grade certified Gold and Silver rarities in many of the popular series.
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.
