Weekly Market Report 3/21/16

| March 21 2016

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

Why Canada is dumping its Gold - and China isn’t

Japan’s Biggest Gold Retailer Says Negative Rates Boost Demand

This Week’s Headlines:

Gold
2016 Proof Gold Eagles issued by U.S. Mint
ETF fund’s depositories increase on record pace
Silver
Platinum
Recommended Investment Commitment and Diversification

GOLD

The key to last week’s Gold trading was the Federal Reserve announcement Wednesday. Gold jumped $20 an ounce in late Wednesday trading after the Fed made two very bullish statements. First, the Federal Reserve cut the number of interest rate increases it originally forecasted last year. Second, the Fed also lowered its projections for U.S. economic growth. Both statements sent the U.S. Dollar sharply lower and Gold and Silver sharply higher. For more detailed information on the Federal Reserve announcement, read the article Yellen Restores Faith in Gold with the link at the top of the page.

Gold closed last Friday at $1,254.30 per ounce, down $5.10. After a 20% increase since January 1, I continue to call for consolidation of 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.

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2016 Proof Gold Eagles issued by U.S. Mint

Last Thursday the U.S. Mint offered for sale the 2016 Proof Gold Eagles. The proof one ounce Gold Eagles were sold in the Government holder at $1,560 each and aren’t graded. Our company purchased a large quantity of these Proof Gold Eagles and will be submitting them directly to NGC and PCGS for grading and encapsulation. We are offering our clients a pre-sale for the one ounce proof as well as the four piece proof set in PCGS/NGC Proof-70 Deep/Ultra Cameo grade.

For pricing information click on http://www.mintstategold.com/pre-sale-offers.html

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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 21 tonnes last week. The data from GLD shows an inflow of 177 tonnes for the year, versus 55 tonnes in the same period in 2015. The ETF, SPDR Gold Shares (N.Y.S.E. Symbol GLD) show 818.98 Metric Tonnes of Gold in their depository. Many first time investors who want to own Gold but 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.

Today: This morning Gold has traded between $1,241 and $1,256 as it consolidates its recent gains.

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SILVER

Silver closed last Friday at $15.81 per ounce, up $0.21 from the previous week and up $2.03 (14.74%) since the start of the year. Silver reached a high of $16.17 per ounce last Friday, briefly breaking the key $16 resistance level. $16.17 is the highest price Silver has traded at since October 2015. Last Friday was the first attempt this year to break the very important $16 support/resistance level. I expect to see another attempt very soon.

As of March 18, 2016, the U.S. Mint has sold 13,000,000 one-ounce .999 Silver Eagles. This is higher than last year and ahead of the record 47,000,000 pace of 2015 sales. The U.S. Mint sales has been averaging over one million one-ounce Silver Eagles a week.

The Silver/Gold ratio is still over an amazing 79.33-to-1.

Today: Silver traded as high as $15.93 before selling off with Gold. Silver is now trading around the $15.80 per ounce level.

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PLATINUM

Platinum closed last Friday at $970 per ounce, unchanged 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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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.

Categories: Weekly Market Report