Weekly Market Report 4/11/16

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

Gold: Total collapse in the worth of the Dollar?

Investors advised to double Gold holdings as demand set to rise

U.S. Silver jewelry sales grow for 7th straight year

Gold is the pile of poker chips in next global crisis

IMF approves reserve-currency status for China’s Yuan

This Week’s Headlines:

Gold
New book on Gold
Silver
Platinum
April 2016 CoinStats now available
PCGS/NGC 2016 Proof-70 Deep Cameo 1oz Gold Buffalo & Eagles
Recommended investment commitment and diversification

GOLD

Gold closed last Friday at $1,243.80 per ounce, up $20 for the week and up $183 (17%) since the beginning of 2016. That’s not a bad return for three months considering annual interest rates are less than 2%.

Last Thursday, the FOMC released the March Fed meeting minutes. These minutes were very important because they provided clues to the future direction of U.S. interest rates. The minutes showed that Chairman Janet Yellen is unlikely to raise rates this month, and the balance of the year is a big question mark. Gold quickly rallied $20 per ounce, reaching $1,245 before seeing some light selling.

Since the first quarter just ended, let’s recap Gold trading since the beginning of 2016. Gold started the year at $1,060 per ounce. In January, after a steady move higher, Gold closed at $1,116, up $56 (5.29%). In February, Gold continued to move higher reaching a high of $1,263 and closing the month at $1,234, up $118 for the month and $174 (16.4%) since the start of 2016. In March, Gold consolidated its gains, trading between $1,206 and $1,287 per ounce on heavy volume, as global demand continued to grow from central banks, mutual funds, hedge funds, and private investors. Gold ended March at $1,235, up $175 (16.5%) since the beginning of the year. The bullish arguments and Gold’s fundamentals remain intact, and I believe Gold will soon make another attempt at the $1,300 resistance level.

Today: Gold reached a high of $1,260 today on a fresh wave of buying due to a weaker U.S. Dollar and strong safe-haven buying. Weak economic data coming out of Europe and Asia is providing concerns that negative interest rates and another round of quantitative easing is highly possible.

Back to top of report

New book on Gold

A new book on the future outlook for Gold was released last week and is available on Amazon.com. The book, titled The New Case for Gold, is written by New York Times bestselling author James Rickards and is well worth reading.

The book does have one serious problem: Chapter 6 (How to acquire Gold). The author is clearly unfamiliar with the size and depth of the worldwide physical Gold bullion coin/bar market and incorrectly believes there is poor liquidity. In fact, there are thousands of dealers and banks worldwide (no banks in the U.S.) that make an active bid/ask market for many of the popular Gold bullion coins/bars. Gold bullion coins can be turned into cash immediately.

Mr. Rickards recommends allowing Physical Gold Fund to hold your Gold purchases. I don’t recommend letting anyone hold your precious metals. I understand this recommendation since he is the spokesman for that company. Reading the first five chapters is worth paying the $13 for the book.

Back to top of report

SILVER

Silver closed last week at $15.38 per ounce, up $0.34 for the week, and up $1.60 (11.6%) since the beginning of the year. Since the beginning of April, Silver has had its ups and downs for the same reasons that dramatically affected the Gold price. Silver reached a high of $15.39 on Friday, testing and holding above the key $15 per ounce support level earlier in the week. I believe Silver will make another attempt to break the $16 per ounce resistance level very soon.

Demand for physical Silver remained strong as the U.S. Mint added another million ounces of 1oz Silver Eagles to sales figures. 2016 sales are now 15,964,000 1oz .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 have been averaging over a million 1oz Silver Eagles a week.

The Silver/Gold ratio is still over an amazing 80.85-to-1.

Today: After reaching $16.17 on March 16 and being beaten back to $14.79 on April 1, today Silver has mounted its third attempt to break above the key $16 per ounce resistance level. Silver is moving up with Gold today, reaching a high of $15.99 on excellent trading volume. The buyers are back in Asia, the Middle East, Europe, and the U.S.

Back to top of report

PLATINUM

Platinum closed last Friday at $968 per ounce, up $13 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.

Back to top of report

April 2016 CoinStats 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 2016 and is now available. Six different series are available: $20 Gold Saint Gaudens, $20 Gold Liberties, $10 Gold 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.

Back to top of report

PCGS/NGC 2016 Proof-70 Deep Cameo 1oz Gold Buffalo & Eagles

Our 2016 Proof Gold Buffalo and Eagles are at PCGS and NGC and are being graded and returned to us; some last week, some this week. Our cash/check/bank wire price for the 1oz Proof-70 Deep/Ultra Cameo First Strike/Early Release Gold coins are only $1,635 and $1,649 for the Proof Buffalo and Proof Eagles respectively. This price is only a few percent more than the mint issue price for the raw uncertified coins in the government holders. Plus, our price includes the Best Price Guarantee and free shipping.

Click on the following links to view/purchase these coins:
www.mintstategold.com/us-g-50-buffalo-2016-w-pcgs-pr70dcam-first-strike-buffalo-label.html
www.mintstategold.com/us-g-50-eagle-2016-w-pcgs-pr70dcam-first-strike-flag-label.html

Back to top of report

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.

Back to top of report

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.

Back to top of report