Weekly Market Report 3/14/16

| March 14 2016

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

10 countries hoarding enormous piles of Gold

Gold beats everything in 2016

This Week’s Headlines:

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

GOLD

Gold closed last Friday at $1,259.40 per ounce, down $10.80 per ounce. Last week Gold hit a new 2016 high of $1,287.90, while testing the $1,250 support level three times and holding. After a 20% increase since January 1, I would call last week a consolidation week for the Gold price. It is long term healthy for the Gold price to trade around the $1,250 level for a while. This gives it a floor for the next move up to test the $1,300 level, which I think will come by month end.

Last Thursday was a noteworthy day. In early Asian trading, Gold briefly broke below the key $1,250 per ounce support level, reaching a low of $1,245.40 per ounce. At that point, the U.S. Dollar weakened on a statement from ECB Chairman Mario Draghi saying it is unlikely the Euro zone interest rates would drop. After the statement, program trading and central bank purchasing appeared and the price quickly jumped $20 on heavy trading volume. High volume rallies are excellent indicators that program trading is now fundamentally bullish, as professional traders continue to view any sell off as a buying opportunity.

Please click on the link to the China’s global Gold Strategy article, at the top of the page. This is a great article that provides an excellent insider’s view of the ability that China has to move the Gold price much higher.

Today: This morning Gold has traded between $1,241 and $1,261 as it consolidates its recent gains.

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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 5 tonnes last week. The data from GLD shows an inflow of 156 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 the physical product, nor are you able to take delivery of it.

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SILVER

Silver closed last Friday at $15.60 per ounce, down $0.09 from the previous week and up $1.82 (13%) since the start of the year. Silver followed Gold lower in early Asian trading on Thursday. At one point, Silver reached $15.16 before the program Gold buying came in. Silver rallied back with Gold and closed the day at $15.55 per ounce.

As of March 11, 2016, the U.S. Mint has sold 12,000,000 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 still over an amazing 80-to-1.

Today: Silver traded as high as $15.84 before selling off with Gold. Silver is now trading around the $15.50 per ounce level.

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PLATINUM

Platinum closed last Friday at $970 per ounce, down $16 for the week. As Gold moves higher or lower, it appears that Platinum is moving up at a higher percentage. Platinum is trading at 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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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 were 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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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.

Categories: Weekly Market Report