Weekly Market Report 3/7/16

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

Investors Not Believing Economic Data, Still Prefer Gold

Buy Gold and save yourself!

Guy who called Gold’s bottom says it could jump 10% over next 9 months

This Week’s Headlines:

Gold
ETF fund’s depositories increase on record pace
Silver
Platinum
Numismatic Report from Dallas
Recommended Investment Commitment and Diversification

GOLD

What a great week for Gold investors with Gold moving up $50 per ounce, on its way to the next resistance level of $1,300 per ounce. Gold closed last Friday at $1,270.70 per ounce after trading at a high of $1,280.70 earlier in the day, a new 2016 high. As a result of the continued physical demand by Central Banks, ETFs, and investors, Gold is up 20% since the first of the year.

Friday’s Gold trading on the CME with heavy volume is a sign of more good things to come. Friday morning, the U.S. Labor Department released the February Unemployment Report. There were 242,000 new jobs created in February and the unemployment rate is still at 4.9%. When this news was released the price of Gold was trading at $1,260 and it immediately dropped to $1,250 per ounce. Then, within 10 minutes, massive buying appeared and the price shot back up to $1,270. Then slowly, Gold worked its way up to the high of today at $1,280 per ounce on the highest trading volume for the week. The CME April hundred-ounce Gold contract volume was 353,000 (35.3 million ounces) the highest since June of 2013. This high volume rally indicates that program trading is now fundamentally bullish, as professional traders continue to view any sell off as a buying opportunity.

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ETF fund’s depositories increase on record pace

The holdings of the world’s largest Gold-backed exchange-traded fund (GLD), SPDR Gold shares, rose 31 tonnes last week. The data from GLD shows an inflow of 151 tonnes for the year, versus 52 tonnes in the same period in 2015. Many first time investors who want to own Gold and aren’t familiar with how to buy Gold bullion coins are advised by their stock brokers to buy a stock on the New York Stock Exchange called GLD. This is one of the most popular ways of buying paper Gold, but you never see it, nor are you able to take delivery of it.

The U.S. Mint sold 207,600 ounces of Gold Eagles as of Feb. 29, 2016, up over 100% compared to last year’s sales.

Today: This morning Gold has traded between $1,256 and $1,273 per ounce as it consolidates recent gains.

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SILVER

Silver closed last Friday at $15.69 per ounce, up $0.98 from the previous week and up $1.91 (13.89%) since the start of the year. Silver finally got back on track as it broke back above the key $15 resistance level last Wednesday, as Gold moved higher. On Friday, Silver reached a high of $15.84, which is only $0.15 under the 2016 high of $15.99.

As of March 4, 2016, the U.S. Mint has sold 11,000,000 one-ounce .999 Silver Eagles. This is higher than last year and ahead of the record 47,000,000 pace of 2015 sales.

The Silver/Gold ratio is currently at an amazing 81-to-1.

Today: Silver is trading in a $0.39 range this morning, from $15.44 and $15.83 per ounce.

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PLATINUM

Platinum closed last Friday at $986 per ounce, up $71 for the week. As Gold moves higher, it appears that Platinum is moving up at a higher percentage. Platinum is trading at more than a $250 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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Numismatic Report from Dallas

I just returned from the spring American Numismatic Associations (ANA) National Money Rare Coin Show in Dallas, Texas. The convention was well attended by thousands of dealers, collectors and investors. I was very impressed by their aggressiveness during the bourse floor trading. Demand for high grade and rare U.S. NGC/PCGS certified coins was the strongest I have seen in years.

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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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