Weekly Market Report 3/28/16

| March 28 2016

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

U.S. Mint Coin Sales – American Gold Eagle Proof Coins Debut

Why Poor Man’s Gold May be About to Get More Investor Love

JPMorgan Chase’s Forecaster says Buy Gold, Not Stocks

This Week’s Headlines:

Gold
Gold’s 12 Most Bullish Fundamentals
Silver
Platinum
Numismatic Report
U.S. Mint releasing 2016 Proof 1oz $50 Gold Buffalo this week
Recommended Investment Commitment and Diversification

GOLD

Last Wednesday, the Gold price fell $30 to $1,211 per ounce, the lowest price this month. This price correction was due to a sharp rally in the U.S. Dollar following hawkish comments by Federal Reserve Bank of Philadelphia President Patrick Harker. Harker said the Fed needs to continue with rate hikes and should consider a move in April. This news brings the total to four regional Fed Presidents who have rebuffed Chair Yellen in the press since last week’s FOMC meeting and are calling for a quarter point hike during the April meeting.

On Thursday, Gold closed at $1,221.60 per ounce (markets were closed Friday for the Good Friday holiday). Gold was down $32.70 for the week, but up $161.30 (15.21%) for the year. I believe it is an excellent buying opportunity for long term Gold investors. There is a chance that Gold could reach the $1,200 per ounce support level. But, there is a better chance that the Gold price would have a sharp rally as Asian bargain buyers and central banks continue their aggressive purchases.

After last week’s Gold correction, it is always good to look at the basic fundamentals.

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Gold’s 12 Most Bullish Fundamentals:

Physical demand for Gold and Silver investment products is at the strongest level in years. Many world mints report record 2015 sales for bullion coins and are showing double digit percentage increases this year.
Worldwide interest rates are at historic lows, with nine major countries quoting negative interest rates.
Global quantitative easing (money printing) in the U.S., China, Japan, and Europe is increasing debt at an unbelievable rate. The U.S. National Debt has passed 19 trillion.
The World Gold Council is reporting mine production falling dramatically as the cost of production goes higher.
Central banks continue to trade their U.S. Dollars for Gold, thus building their reserves.
Stockpiles of Gold in depositories continue to drop, filling heavy physical demand. This could soon cause a short squeeze on sellers of Gold.
ETF Gold investors have been aggressively buying in 2016, with GLD holdings up 181 metric tonnes since January 1, a 28% increase in less than three months.
Chinese investors, the world’s most aggressive Gold buyers, are switching out of equities into physical Gold and Silver. The Gold buying is continuing to grow.
The U.S. Dollar is continuing its recent trend of weakening against the Euro, which will increase premiums on Gold, especially on the British, French, and Swiss pre-1934 Gold coins.
The financial consultants, money/fund managers, and commodity professionals that are being interviewed on financial media have become bullish on Gold and Silver. Why? Gold is up 15% and Silver up 10% this year, compared to a 200 point decline in the DJIA.
More countries are repatriating their Gold being held at the NY Federal Reserve Bank.
The idea of a U.S. Gold Standard is being discussed by Republicans, as a few states are setting up Gold/Silver depositories.

Today: This morning Gold reached a low of $1,208 per ounce in early Asian trading. At that price bargain buying appeared and the price quickly rallied $10 per ounce.

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SILVER

Silver closed last week at $15.19 per ounce, down $0.62 for the week, but up $1.41 (10%) since the start of the year. Gold’s dramatic sell-off last week has affected the Silver price. After reaching a high of $16.17 on March 18, last week Silver reached a low of $15.11 on March 24. Silver is clearly in a trading range from its support level of $15 to its resistance level of $16 per ounce. Silver is an outstanding bargain at the current price. So, adding to your long term Silver holdings is recommended.

Demand for physical Silver remains strong as the U.S. Mint added another million ounces of 1oz Silver Eagles; 2016 sales are now at 14,000,000 1oz .999 Silver Eagles. This is higher than last year and ahead of the record 47,000,000 pace of 2015 sales. U.S. Mint sales have been averaging over a million 1oz Silver Eagles a week.

The Silver/Gold ratio is still over an amazing 80.42-to-1.

Today: Silver fell with Gold in early Asian trading, hitting a low of $15.13 per ounce, then rallied $0.10 on excellent demand.

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PLATINUM

Platinum closed last Friday at $952 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 $220 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

This week the Whitman Baltimore Expo Show starts on Thursday in Baltimore, MD. Recent rare coin conventions in Long Beach and Dallas have shown increasing demand for higher grade PCGS/NGC Gold and Silver coins. With over a thousand collectors, dealers, and investors attending this show, I expect to see the trend continue.

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U.S. Mint releasing 2016 Proof 1oz $50 Gold Buffalo this week

This week the U.S. Mint will be releasing the Proof 1oz $50 Gold Buffalo coins. The U.S. Mint will be selling them in the Mint Box and should be announcing the price this Wednesday or Thursday. As soon as we know the prices we will be offering a Pre-Sale for the perfect Proof-70 Cameo 2016 Gold Buffalo in certified PCGS/NGC holders on Thursday or Friday for a small premium over the Mint issue price.

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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