Weekly Market Report 6/22/15

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

Gold’s Supply/Demand Imbalance To Push Prices Higher

Bank of China Joins Auction Setting Gold Prices in London

The next great bull market: Gold $25,000

Indian Silver Imports: On Track to Smash All Records

This Week’s Headlines:

Gold
Greek debt crisis continues
Silver
Platinum
Recommended Investment Commitment and Diversification

GOLD

Last week Gold rallied $22.70 per ounce, closing the week at $1,201.90 per ounce, staying above the important $1,200 resistance/support level. Gold has moved above and below the important $1,200 level nine times since Feb 2015. During this four month period, Gold has hit a high of $1,232 and a low of $1,141. If you remember, Gold reached an all-time high of $1,920 per ounce in September 2011, and since then it has been in a downward trend. Many Gold analysts, myself included, feel strongly that Gold has bottomed out over the past four months and that it will not go below the recent lows.

Last Wednesday, the Federal Reserve governors decided to keep the central bank’s benchmark short-term interest rate near zero, after determining the economy still isn’t strong enough to handle an increase. There has not been an increase in the benchmark short-term interest rate since 2006. Fed officials also sharply downgraded their economic forecast for this year. They now project the economy will grow between 1.8% and 2% this year, well below the projected range of 2.3% to 2.7% in their last forecast in March 2015. The Feds non-action, combined with a lower GDP projection, is very bullish for Gold. Gold rallied $25.20 per ounce on Thursday morning on this news.

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Greek debt crisis continues

The Greek debt crisis continues to be a wild card as to the way it effects the value of Gold and the U.S. Dollar. On Sunday, Greece’s Prime Minister, Alexis Tsipras, sent out new proposals in a bid to prevent a default on a €1.6bn (£1.1bn) IMF loan. Greece must repay the debt by the end of June or risk crashing out of the single currency and possibly the EU. Uncertainty in the currency markets typically leads to major safe haven investments such as Gold.

Talks have been in deadlock for five months, with the European Commission, the IMF, and the European Central Bank (ECB) unwilling to unlock the final €7.2bn of bailout funds until Greece agrees to economic reforms they want to see introduced. European leaders have intensified their efforts to reach a deal over the Greek debt crisis, ahead of an emergency Brussels summit to break the deadlock.

This morning’s strong U.S. Dollar versus the Euro and Yen, plus weaker demand for physical Gold, has resulted in a drop in the Gold price of $14 per ounce.

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SILVER

Last week Silver closed at $16.11 per ounce, up $0.28 for the week. Silver rallied sharply last Thursday, reaching a high of $16.43 per ounce before seeing short term profit taking. Last week the price of Silver moved above and below the $16 per ounce level on average volume. $16 is proving to be a very important price level for Silver. If Gold can stay above $1,200 per ounce, Silver should be able to stay above $16 per ounce.

The Silver/Gold ratio moved to an amazing 74.61-to-1.

This morning, Silver amazingly rallied $0.06 an ounce in the face of a $14 drop in Gold.

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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 $55 discount to the 1oz American Gold Eagles. The Canadian 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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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.

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