Weekly Market Report 4/18/16
Links to recent informative articles on precious metals and rare coins:
China’s yuan Gold benchmark to launch with 18 members
Silver overtakes Gold as best precious metal on China confidence
Gold Demand Jumps in Japan as Sub-Zero Rates Spur Call for Haven
Deutsche Bank Says World “Past the Point Of No Return” In The Default Cycle
Russia continues to add tons of Gold to nation’s bullion reserves
Expert sees Gold price crossing $3,000 in 3 years
Chinese Gold demand picking up - 183.2 tonnes in March
Gold
Gold continues bullish rally and is moving higher
Silver
Platinum
Recommended Investment Commitment and Diversification
Gold closed last Friday at $1,234.60 per ounce, down $9.20 for the week but up $174 (16%) since the beginning of 2016. Last Wednesday and Thursday, Gold dropped from $1,264 to $1,225 as the U.S. Dollar had a bear market rally and a 10 ton drop in the ETF, GLD Gold depository holdings.
The U.S. Budget Deficit is widening. The deficit increased $461 billion in the last six months, with a sharply higher increase of $108 billion in the last month alone. A $20 trillion national debt, here we come!
Tomorrow, China will launch a Yuan-denominated Gold fix on the Shanghai Gold Exchange, just one more step in China’s move to replace the U.S. Dollar as the world’s preferred reserve currency for Central banks. China will join 18 others, including 2 foreign banks, on a benchmark-setting event. This is the biggest step China has taken to become a price-setter for the spot price of Gold. China will launch a Yuan-denominated 1 kilo Gold contract, which is traded on the state-run Shanghai Gold Exchange. For more information please read the article: China’s yuan gold benchmark to launch with 18 members
Gold continues bullish rally and is moving higher
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 that Gold is in the early stages of a major rally and will very soon make another attempt at the $1,300 resistance level.
Today: Lower Oil, Equities and U.S. Dollar are helping the price of Gold. Gold is trading in a narrow range from $1,230 to $1,240 per ounce.
Silver closed last week at $16.31 per ounce, up $0.93 for the week and up $2.53 (18.4%) since the beginning of the year. Silver reached a high of $16.40 on Friday, testing and holding above the key $16 per ounce support level earlier in the week. $16.40 is the highest the Silver price has been since June 18th 2015. It will be healthy for the Silver price to stay in its $16.00 to $16.40 trading range for a couple weeks, but the bears are on the run as margin calls are going out, so we could easily reach $17 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 17,000,000 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.
With last week’s Silver rally, the Silver/Gold ratio has shrunk to only 75.68 to 1.
Today: Silver continues to hold above the $16 per ounce level in active trading.
Platinum closed last Friday at $990 per ounce, up $22 for the week. As Gold moves higher this year, it appears that Platinum is moving up at a higher percentage. Platinum is trading at more than a $200 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.
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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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.
