Weekly Market Report 6/15/15

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

China Silver stockpiles surge

How central banks will push up the Gold price

How much Gold in China? 30,000 Tons?

This Week’s Headlines:

Gold
Silver
Platinum
Recommended Investment Commitment and Diversification

GOLD

Last week Gold rallied back above the key $1,180 resistance/support price level. Gold closed between $1,173.60 and 1,186.60 all five trading days last week. Gold closed at $1,180.80 per ounce last Friday, up $12.70 per ounce for the week. Last week’s trading volume was low, which is normal as we enter the summer months, but it was not bullish enough for Gold to move back above the key $1,200 per ounce resistance level.

Uncertainty over the Greek debt crisis was both positive and negative for the Gold price last week. Last Monday, Greece proclaimed a new willingness to compromise with its international creditors, as German Chancellor Angela Merkel warned that time was running out to reach a reform-for-aid deal to keep Greece in the Euro. Later in the week, it appeared as if they were going to make a deal, but the failure to reach an agreement triggered safe-haven buying of Gold.

China has not reported the amount of Gold its Central bank holds since 2009, when it stated it held 1,054 metric tonnes of Gold. Since 2009, China has aggressively purchased Gold from many of the world’s commodity markets as well as direct from some of the world’s largest mines, including mines in China. Speculation of China’s Gold holdings has ranged from 5,000 - 50,000 metric tonnes. Now, it was recently reported by Russian news source Pravda that the Chinese Central Bank has accumulated 30,000 tons (965 million ounces) of Gold. If confirmed, that would be over 4 times the amount of the U.S. reported Gold holdings. Read the full article at: www.mintstategold.com/investor-education/cat/news/post/how_much_gold_is_in_china/.

This morning’s combination of little progress with the Greek debt crisis, and the released report of U.S. industrial production falling by 0.2% in May, has resulted in a nice rally in the Gold price as it continues to stay within the $1,180 to $1,220 trading range. Today’s U.S. industrial production report included a revision for April showing a 0.5% drop. These are very sluggish numbers which are likely to delay any increase in interest rates by the Federal Reserve.

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SILVER

Last week Silver closed between $15.82 and $15.96 per ounce all five days. Silver continues to try to break the important $16 per ounce support/resistance level. CME trading volume on the active July 5,000 future contract was disappointing, with under 50,000 contracts traded every day last week.

The Silver/Gold ratio moved to an amazing 74.52-to-1.

This morning, Silver rallied back above the important $16 per ounce support level, reaching a high of $16.30 per ounce. Trading volume is picking up as bargain buyers are aggressively purchasing physical Silver investment products.

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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 $25 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.

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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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