Weekly Market Report 6/8/15

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

China Gold demand holding up well – new record ahead?

This Week’s Headlines:

Gold
Silver
Platinum
Rare Coin Report
Recommended Investment Commitment and Diversification

GOLD

Last week Gold broke below the important $1,180 per ounce support level, reaching an inter-week low of $1,162.10 per ounce. Last Friday Gold closed at $1,168.10 per ounce, down $21 for the week. If Gold doesn’t find major support in Asia this week, we could test the 2015 low of $1,141.60 per ounce. Gold reached that low on March 17, then quickly rallied higher as major buyers appeared, purchasing over 30 tonnes on the Asian markets within minutes.

Some precious metal analysts have been calling for a final clean out in Gold. A clean out would take Gold to the recent low, on high trading volume. This would drive out the weak and speculative buyers, and allow major buyers and central banks to acquire tonnages of Gold at an attractive price. Over the past 15 years, major rallies in Gold, Silver, and Platinum have started with a clean out of weak hands.

Historically, Gold investment, as a percentage of stock investors’ portfolios, was 5.8 times higher than today’s levels! This reveals how extreme today’s Gold under-investment is by American stock investors. Their portfolio Gold exposure today via GLD is only around 1/6 of peak levels, relative to stocks, and only about 1/3 of absolute levels in terms of capital invested in GLD. This is super-bullish for Gold!

This morning Gold found excellent demand in the $1,169 per ounce area. Gold has traded in a narrow $8 high/low price range, from $1,169 to $1,177 per ounce. I would like to see Gold move back above the key $1,180 per ounce level.

Back to top of report

SILVER

Last week Silver broke below the important $16 per ounce support level on Friday, reaching a low of $15.93 per ounce. Silver closed at $15.98 per ounce last Friday, down $0.72 per ounce for the week. If Silver has any serious break below $16 it could result in driving the price lower, potentially reaching the 2015 low of $15.26 per ounce.

The Silver/Gold ratio moved to 73.08-to-1.

Silver fell below the important $16 per ounce support level this morning, reaching a low of $15.88 per ounce. Trading volume is picking up as bargain buyers are aggressively purchasing physical Silver investment products.

Back to top of report

PLATINUM

For most of 2015, the spot price of Platinum has traded at a discount to the Gold spot price. This has only happened four times in the past ten years, and Platinum rarely stays at a discount to Gold for more than six months. As of the close of trading last Friday, 1oz Platinum Maple Leafs were trading at a $10 discount to the 1oz American Gold Eagles. The Platinum Maple Leaf is the best bullion coin on the market, with the lowest premium over spot Platinum.

Back to top of report

Rare Coin Report

Last week I was in Long Beach, California attending the Long Beach Coin Expo. Thousands of rare coin collectors, investors, and dealers attend this rare coin convention. The Long Beach Coin Expo is held three times per year, with the June show normally being the slowest of the three. However, this year’s June show did not disappoint me. Demand for high quality PCGS/NGC certified U.S. Gold and Silver rare coins was strong, while supplies were thin. Most of the dealers focused their attention on selling their inventories to eliminate overstocked rare coins in the $1,000 to $5,000 price area. I was able to make a few new purchases of some better date PCGS and NGC certified Morgan and Peace Dollars, as well as a few rare Gold Saint Gaudens and Liberties.

Back to top of report

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

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