Weekly Market Report 3/16/15

| March 16 2015

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This Week’s Headlines:

Gold
Fed meeting should help metals prices
Silver
Recommended Investment Commitment and Diversification

GOLD

Gold closed at $1,152.40 per ounce last Friday, down $11.90 for the week and down $31 since the beginning of the year. For most of last week Gold traded between $1,150 and $1,170 per ounce on excellent trading volume on most of the world’s commodity exchanges.

Last Wednesday Gold hit a low of $1,146.50 per ounce, the lowest price this year. However, the lowest price we have seen since the August 2011 high was $1,130.40 per ounce, which was reached on November 7, 2014. The main factors causing the recent decline in the Gold price are the strength of the U.S. Dollar ($1.03 to the Euro --- an 11 year high). There are also serious concerns that the Federal Reserve will raise interest rates by this summer. Both of these factors have resulted in speculative selling, which has driven down the Gold price.

The recent decline in the Gold price has reawakened extraordinarily heavy demand for physical investment precious metal products. Premiums on Gold, Silver, Platinum, and Palladium bullion coins and bars have increased. This strong demand is coming from Chinese and Indian buyers, as well as many of the world’s central banks looking to exchange their over-valued U.S. Dollars for Gold. When March Gold consumption is reported in mid-April I think we will see a major spike.

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Fed meeting should help metals prices

Tomorrow the Federal Reserve Open Market Committee begins its two day meeting. The meeting ends on Wednesday followed by a press conference with Federal Reserve Chairman Janet Yellen. The commodity market experts will be listening for indications of Federal Reserve future policy during the interview. If Yellen states that the weakening economic indicators will result in the Fed pushing back any interest rate increases until this fall, or possibly even next year, this would be bearish for the U.S. Dollar, and bullish for precious metals.

This morning Gold is trading in a tight $14 high/low price range, from $1,150 to $1,164 per ounce. Many market traders are awaiting indications from the Federal Reserve meeting on the future of interest rate policy.

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SILVER

Silver closed last Friday at $15.49 per ounce, down $0.30 for the week, down $0.09 since the beginning of the year. Last week Silver showed excellent price support above $15.25 per ounce. However, $15 per ounce is a very important support level.

Right now the Silver/Gold ratio is at 74.39-to-1

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 45% of investment capital

Diversification: Gold 45%, Silver 45%, Platinum & Palladium 10%

Diversification includes 50% in long term investment quality rare coins and 50% short term bullion products

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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