Weekly Market Report 10/3/16
Links to recent informative articles on precious metals and rare coins:
Gold Price Impasse - Who Gives First???
Gold Bugs Rejoice... Central Banks Think You’re on to Something
"Gold Will Likely Soar to A Record Within Five Years"
U.S. Imports Record Amount of Gold from Switzerland in July
Gold
Chinese Renminbi joins U.S. Dollar as part of IMF SDR Currency Basket
Silver
Recommended investment commitment and diversification
Before I provide my view of what happened in the precious metal markets last week, I want to call your attention to the first three articles about Gold above. I have provided a link to these three articles because I feel it’s important for you to read them.
Last Friday, Gold closed at $1,317.60 per ounce, down $24.60 for the week but up $5.70 for the month, and up $256 since the beginning of 2016. Based on the majority of scientific polls reporting that Hillary Clinton had a positive performance at last Monday night’s presidential debate, the U.S. Dollar and global equity markets rallied sharply. However, precious metals were affected negatively, as a Donald Trump presidency is considered by many analysts as more positive for Gold and Silver.
Today: This morning Gold is trading in a very narrow $9 high/low price range. Gold has found excellent support around $1,310, but resistance at $1,319 per ounce.
Chinese Renminbi joins U.S. Dollar as part of IMF SDR Currency Basket
Last Saturday, the International Monetary Fund (IMF) formally added the Chinese Renminbi to the basket of reserve currencies. This is a major economic move for China, as the Renminbi is now lumped in with the U.S. Dollar, British Pound, Japanese Yen and European Euro as the world’s reserve currencies. As part of the IMF SDR Currency Basket, the Chinese are now hoping that the Renminbi will rival the Dollar as the world’s most popular de facto currency. As China continues to build its Gold reserves and improve the creditability of the Renminbi, the future value of the U.S. Dollar is in jeopardy. For years, I have talked about the Chinese currency replacing the U.S. Dollar as the reserve currency at the world’s central banks. If the Renminbi became the world’s reserve currency, there would be a dramatic increase in the price of Gold valued in Dollars.
Silver dropped $0.43 the day after last week’s Clinton/Trump presidential debate. Silver closed at $19.21 last Friday, down $0.60 for the week. Three times last week, Silver tested the $19 per ounce support level and held. During September, Silver traded between the $19 and $20 per ounce level, building an excellent base for the next move higher.
Last week, the Silver/Gold ratio increased to 68.55-to-1.
Today: Silver continues to trade above and below the important $19 per ounce support level. As we move out of the summer months, and at current price levels, I expect to see Silver demand pick up dramatically 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.
