Weekly Market Report 1/19/16

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

The Chinese Silver Fox

An ’Acute Shortage‘ in Gold Can Boost Prices

China and Russia Increased Gold Purchases in 2015

The Joy of Gold

This Week’s Headlines:

Gold
Platinum
Silver
January 2016 CoinStats now available
Recommended Investment Commitment and Diversification

GOLD

Gold continues its strong demand and price support as we pass the middle of January. Gold closed last Friday at $1,090.70 per ounce, up $30 since the beginning of the month. With the Dow Jones Industrial Average (DJIA) down almost 1,500 points since Jan. 1, and the price of crude oil falling like a rock, Gold has become the popular alternate investment. Physical demand continues to grow with the U.S. Mint selling 75,000 ounces of Gold Eagles in the first 15 days of January.

The fundamentals for a major increase in the price of Gold continue to look outstanding. While physical investment demand is at record levels, mine production is projecting another decline this year. These issues are leading to an acute shortage of Gold. I have provided a link in the ’headlines’ section above to an interesting article written by John Hathaway about how this acute shortage of Gold will lead to a price boost.

2016 will be remembered as the year Gold ended its 5-year bear market downward move. I look for Gold to break above the $1,100 per ounce resistance level this week. After Gold moves above $1,100, I expect to see some consolidation, then the rally will slowly continue through 2016. I expect to see Gold reach $1,400 per ounce this year and trade in the $1,350 per ounce area by year end.

Today: This morning Gold is consolidating in a $1,082 to $1,094 per ounce trading range on average volume. There was more action in the Silver markets this morning.

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PLATINUM

Platinum closed last Friday at $827 per ounce; more than a $240 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

Last week there was a bull – bear war on the commodity market floors around the world. Silver traded actively above and below the key $14 per ounce level. On Thursday, the bears and technical traders came back and aggressively sold into the market, driving the price down $0.40 per ounce to $13.75. On Friday, Silver closed at $13.90 per ounce, up $0.15 for the day.

The Silver/Gold ratio is currently at an amazing 78.49-to-1.

Today: There was excellent bargain buying in the Asian Silver markets, taking the price back above the key $14 per ounce level.

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January 2016 CoinStats now available

Our numismatic CoinStats report is the best investment tool for rare coin investors. CoinStats is an in-depth statistical analysis of popular rare coin series that allows you to identify the best values in certified rare coins. I am proud to offer this unique and informative tool exclusively to our clients. CoinStats has been updated for January 2016 and is now available. Six different series are available: $20 Gold Saint Gaudens, $20 Gold Liberties, $10 Gold Indians, Morgan & Peace Silver Dollars, and the Walking Liberty Half Dollars.

The CoinStats report provides a list of my recommended certified U.S. Gold and Silver coins which are found listed on the Best Value page. These are not the modern issue bullion coins or low-grade circulated coins. These are PCGS/NGC certified MS63 or higher Gold and Silver U.S. rare coins, dated prior to 1948, which have a proven track record of appreciation and also offer excellent liquidity. To receive the latest CoinStats analysis, just insert the word CoinStats on the subject line and email me which of the six series you would like to see.

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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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