Weekly Market Report 4/6/15
Links to recent informative articles on precious metals and rare coins:
Kazakhstan extends gold buying spree as Russia keeps assets
Gold
Fundamentals for higher Gold price continue to strengthen
Silver
April 2015 CoinStats in now available
Recommended Investment Commitment and Diversification
Last Friday the U.S. Labor Department released a disappointing Nonfarm payroll report. Nonfarm payroll only increased by 126,000 jobs in March, much less than was expected and earlier reports had already been revised downward. This economic indicator is a high priority for the Federal Reserve when determining the direction of interest rates. I believe this will cause many economists to push out the date of any Fed interest rate increase until 2016. This news should keep Gold above the important $1,200 per ounce resistance/support level when Gold begins trading this week.
The U.S. commodity markets were closed last Friday, celebrating Good Friday. Therefore, the Gold price remained at Thursday’s close of $1,201 per ounce, up $1 for the week. Gold was trading higher in the physical trading markets.
Four times this year the Gold Bears have been able to drive the Gold price below the key $1,200 per ounce support/resistance level. In one instance they were able to take Gold low enough to make a new 2015 low ($1,141.60 on March 17th). In all four instances, sizeable demand appeared on the world’s commodity exchanges and physical markets to drive the Gold price back up.
This morning Gold reacted to Friday’s disappointing Nonfarm payroll report, opening at $1,212 per ounce (up $11 from Thursday’s close) and moving higher.
Fundamentals for a higher Gold price continue to strengthen
While some financial institutions are still calling for Gold to reach $1,000 per ounce, I continue to believe we have seen the bottom of the market and that the price of Gold will move above the current $1,220 resistance level, and go much higher, very soon. The fundamentals for a major increase in the Gold price remain strong. Remember, last year Gold was up in every major currency except the U.S. Dollar. Why will Gold move higher in all major world currencies? Let me share some of the reasons:
- Major military and political problems in the Middle East.
- Worldwide quantitative easing (money printing), especially in China, Japan, and Europe.
- Central Banks continue to trade their U.S. Dollars for Gold, thus building their Gold reserves.
- Extraordinary physical demand for Gold and Silver investment products in China and India.
- Global Gold production is dropping as cost of mining increases.
- Interest rates have reached historical lows worldwide.
Silver continued to flirt with the $17 per ounce resistance level last week, closing the week at $16.70 per ounce, down $0.37 on average trading volume. Silver closed above $17 per ounce last Wednesday, but quickly sold off on Thursday. Silver remains in the $16 to $17.50 per ounce trading range, and needs to move back above the very important $18 per ounce resistance level.
This morning, Silver rallied with Gold, reaching a high of $17.35 before seeing some short term profit taking.
Physical demand for Silver investment products remains strong as the U.S. Mint reports sales of 12,071,000 of the 2015 1oz .999 Silver Eagles through the end of March 2015.
Right now the Silver/Gold ratio is at 71.91-to-1.
April 2015 CoinStats in now available
Our numismatic CoinStats report is the best investment tool for rare coin investors. CoinStats is an in-depth statistical analysis of popular rare coin series that allows you to identify the best values in certified rare coins. I am proud to offer this unique and informative tool exclusively to our clients. CoinStats has been updated for April 2015 and is now available. Six different series are available: $20 Gold Saint Gaudens, $20 Gold Liberties, $10 Indians, Morgan & Peace Silver Dollars, and the Walking Liberty Half Dollars.
The CoinStats Report provides a list of my recommended certified U.S. Gold and Silver coins which are found listed on the Best Value page. These are not the modern issue bullion coins or low-grade circulated coins. These are PCGS/NGC Certified MS63 or higher Gold and Silver U.S. rare coins, dated prior to 1948, which have a proven track record of appreciation and also offer excellent liquidity. To receive the latest CoinStats analysis, just insert the word CoinStats on the subject line and email me which of the six series you would like to see.
I want to thank the clients who gave suggestions on how to improve CoinStats. Those recommendations are appreciated and as a result, beginning with the Jan 2015 CoinStats report, I made some additional changes. The first suggestion was to put coins that have increased in value in blue and those that deceased in red, on the Best Value page. Additionally, I am now indicating when new coins have been added to the Best Value page. If you have any suggestions, please feel free to email me.
Because I believe that CoinStats is one of the best tools to help rare coin collectors and investors recognize great value, I will continue to look for ways to provide more important and relevant information. Your input on CoinStats is always appreciated.
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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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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