Weekly Market Report 2/1/16

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

Central Banks Continue To Buy Up Bullion

The Coming Revaluation of Gold

Bundesbank Brings Home German Gold from New York, Paris: Chart

Gold: Where to Next?

3 Reasons Why You Should Buy Gold In 2016

This Week’s Headlines:

Gold
Platinum
Silver
Long Beach Coin Expo this Week
Recommended investment commitment and diversification

GOLD

Since the beginning of the year, many of the world’s strongest economies are showing concern about falling into a recession and are considering massive monetary stimulus programs. The best hedge to this potential monetary crisis for investors, central banks and market analysts is certainly not equities or crude oil. That is why the world’s major stock markets and the crude oil price have been moving lower since the start of 2016.

It is clear to me that the U.S. stock and bond markets will continue to decline based on the current Federal Reserve policies. Last Wednesday, the Federal Reserve gave its statement after its January meeting. The statement was clearly dovish on the current state of the economy. After the Fed comments, many market analysts felt it was highly unlikely that the Federal Reserve would be raising interest rates.

During January, reports of worldwide demand for physical Gold investment products set new record highs. Central Banks, ETF & Gold Funds, and large investors are all buying Gold by the ton and the price is moving higher. Gold was up $56 (5.3%) in January, closing at $1,116.40 per ounce. Gold has broken above the key $1,100 per ounce level and is heading much higher.

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 coming very soon. I continue to believe that Gold ended its downslide on Dec. 3, 2015 at $1,045 per ounce and the uptrend has started this year.

The U.S. Mint sold 124,000 ounces of Gold Eagles in January, up 53% compared to January 2015 sales of 81,000 ounces.

Today: This morning Gold is showing excellent gains, with good demand and the price well supported above the $1,120 per ounce level.

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PLATINUM

Platinum closed last Friday at $874 per ounce; more than a $200 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 $14.24 last Friday, up $0.19 for the week, and $0.46 since the beginning of the year. Last week Silver broke above the key $14 per ounce resistance level and closed above $14 all five trading days. Silver continues to find strong demand in the physical market as well as in the Silver commodity trading floors around the globe. A move above $14.50 per ounce would be short term bullish for the direction of the Silver price.

As of January 29, the U.S. Mint has sold 5,926,500 one-ounce .999 Silver Eagles. This is higher than last year and ahead of the record 47,000,000 pace for 2015 sales.

The Silver/Gold ratio is currently at an amazing 78.38-to-1.

Today: Silver reached a high this morning of $14.44 per ounce, at that point there was some short term profit taking, which drove the price down to $14.30 per ounce.

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Long Beach Coin Expo this Week

This week I will be in Long Beach, California for the Long Beach Coin Expo. If you are in the Long Beach Convention Center area this Thursday or Friday say hello, we are at table #826. This rare coin convention should be well attended and I am hoping to fill our clients’ rare coin want lists. As the high end certified investment quality rare coin market soars, I am seeing increasing demand from our clients for the CoinStats recommended Gold and Silver coins.

For the past year I have been reporting from the major coin conventions that demand for investment quality Gold and Silver U.S. rare coins has continued to grow, while most dealer’s inventories have been at very low levels. These fundamentals are an outstanding harbinger of much higher prices coming very soon. Many of the dealers who attend these conventions have reported raising both their ask and bid prices for many of their Gold and Silver rarities.

If you haven’t already sent in your rare coin want list to me or David, please email me your list of coins needed ASAP.

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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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