Weekly Market Report 1/25/16

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

3 Reasons Why You Should Buy Gold In 2016

The Goodness of Gold

Russia and Gold

This Week’s Headlines:

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

GOLD

Last Friday Gold closed at $1,096.30, up $5.60 for the week and up $36 since the beginning of the year. Although the focus of the financial news media has been the 1,300 point drop in the DJIA and crude oil dropping to below $30 per barrel, Gold has quietly found committed new buying. Many of the world’s mints are reporting Gold and Silver coin sales data from 2015. Many of these sales numbers are setting all-time records, reflecting the increasing worldwide demand for Gold and Silver investment coin products.

Late last Thursday when Gold was trading above the key $1,100 per ounce support level, a statement was released by European Central Bank President, Mario Draghi. Draghi gave a strong signal that more ECB easing will be coming within months. His comments caused a rally in the U.S. Dollar against the Euro and helped the battered worldwide equity markets, while the spot Gold price moved lower.

For the past ten weeks, Gold has been trading in a tight $35 consolidation range primarily between $1,065 and $1,100, reaching a low of $1,045 and a high of $1,107 per ounce. During this period, the amount of Gold being held in the world’s largest depositaries has continued to drop, and estimates of 2016 mine production keep falling. Lower production from Gold mines is bullish for the physical metal, not Gold shares. Popular investment quality Gold coins are the way to go.

I believe it is clear that the five year down trend in the Gold price has stopped, and the recent consolidation with heavy volume is a sign of higher prices very soon. I still continue to believe that Gold ended its downslide on Dec. 3rd 2015 at $1,045 per ounce and the uptrend has started this year.

Today: This morning the trend continues with stocks and the U.S. Dollar lower, and demand and the Gold price moving higher. Gold reached a high this morning of $1,108.80 per ounce.

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PLATINUM

Platinum closed last Friday at $832 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

Silver closed at $14.06 last Friday, up $0.16 for the week, and $0.28 since the beginning of the year. Last week Silver traded between $13.84 and $14.36, but closed above the $14 per ounce support level all four trading days. Clearly the bull–bear war on the Silver commodity trading floors around the globe continues. Moving above $14.50 per ounce would be short term bullish for the direction of the Silver price.

As of January 22, the U.S. Mint has sold 5,000,000 one-ounce .999 Silver Eagles. This is ahead of the record 47,000,000 pace for 2015 sales.

The Silver/Gold ratio is currently at an amazing 78.00-to-1.

Today: Silver continues to move higher, reaching a high of $14.33 per ounce as demand picks up.

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January 2016 CoinStats is 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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REMEMBER THE BLOG

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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