Weekly Market Report 01/04/16

Links to recent informative articles on precious metals and rare coins:

These Billionaires Are Betting Big on Gold in 2016

This Week’s Headlines:

Gold
January looking good for Gold/Silver/Platinum prices
What 2016 looks like for Gold
2016 Eagles and Buffalo Pre-Order now available
Platinum
Silver
Recommended investment commitment and diversification

GOLD

Gold ended 2015 at $1,060.30 per ounce; down $121.70 (10.3%) for the year. The 2015 low, which was also the four year low for Gold, was $1,045.40 on December 2nd. The Gold Bears made four unsuccessful attempts in December to drive the price down to $1,000 per ounce. Many Gold bearish analysts were predicting that Gold would reach or break $1,000 per ounce by the end of 2015. Many of the same analysts in 2011, when Gold was at $1,920 in September, had predicted Gold would break $2,000 per ounce by the end of 2011.

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January looking good for Gold/Silver/Platinum prices

Historically, January has been an excellent month for the price of precious metals. Last year, Gold, Silver and Platinum all hit their yearly high in January. Gold reached the highest price for 2015 of $1,307.80 per ounce in January and I expect this month to continue the trend. During the past four down years for the Gold price, Gold has moved higher by January 31st then December 31st of the previous year. I think that trend will continue and I look for a minimum of a $50 increase for Gold in January over the 12/31/15 close of $1,060.30.

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What 2016 looks like for Gold

1. I believe Gold will break above the important $1,100 per ounce resistance level this month, and that will help change the bearish sentiment of many of the professional traders in the commodity pits around the world. After moving above $1,100, I expect some consolidation, then the rally will continue through 2016. I expect to see Gold reach $1,400 per ounce before year-end, and end the year in the $1,350 per ounce area.
2. The U.S. Dollar should continue its recent trend of weakening against the Euro, which will increase premiums on the British, French and Swiss Pre-1934 Gold coins.
3. Physical demand for Gold by investors and Central Banks will continue to grow, putting pressure on depositories and stockpiles to make immediate deliveries. This would drive up premiums on the spot Gold price, while causing a shortage in physical supplies around the globe.
4. Mining production will continue to fall, as the cost of Gold production moves higher.
5. More countries will repatriate their Gold held at the N.Y. Federal Reserve.
6. The concept of a U.S. Gold Standard will be considered by the Republican candidate for President.

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2016 Eagles/Buffalo Pre-Order now available with Lowest Premium Guarantee

Mint State Gold by Stuppler & Company is now offering the LOWEST PREMIUM GUARANTEE on Pre-Orders of 2016 Gold Eagles, Gold Buffalos, and Silver Eagles! THIS IS THE BEST DEAL WE’VE EVER GIVEN ON PRE-ORDERS! Order your 2016 U.S. Gold/Silver Eagles and Gold Buffalos in PCGS MS70 First Strike, NGC MS70 Early Release, or in BU condition at today’s prices and pay the current premium over spot! Click on the following link to learn more: http://www.mintstategold.com/2016_lowest_premium_guarantee.

Today: This morning Gold reached a high of $1,082 per ounce after reports of slowing growth and wildly volatile markets in China, plus geopolitical problems in the Middle East. This news has taken the Dow Jones Industrial Average down over 400 points.

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PLATINUM

Platinum closed 2015 at $891.70 per ounce, a $168.60 discount to the spot Gold price. This has only happened four times in the past twenty years, and Platinum rarely stays at a discount to Gold for more than a year. The Canadian Platinum Maple Leaf is the best bullion coin on the market, with the lowest premium over spot Platinum.

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SILVER

Silver closed 2015 at $13.78 per ounce, down $1.78 (11.44%) for the year. Silver has dropped $36 (72%) since reaching it recent high of $49.80 on April 25, 2011. Silver is trading at under the cost of production by many of the world’s largest Silver mines. In 2015 physical demand for Silver investment products has set new all-time records. The U.S. Mint sold 47 million 1oz Silver .999 Eagles. That mintage would have been higher if the U.S. Mint had not stopped manufacturing 2015 Silver Eagles in mid-December to start on the 2016s. Other mints around the world had similar demand and record production for Silver investment coins and bars.

The question to ask is: If production is dropping and demand is increasing, how long will it take before these fundamentals start driving up the price?

Today: Silver rallied with Gold this morning, reaching a high of $14.22 per ounce before seeing sellers. Silver couldn’t hold the $14 per ounce resistance level and fell below.

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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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If you want to be updated on what is happening in the Gold, Silver, and Rare Coin markets any weekday, our company offers a daily blog Monday through Friday at www.stupplerblog.com

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.

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