Weekly Market Report 6/29/15

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

Texas wants its Gold back, does not trust US Fed

China plans to launch Yuan Gold fix by end of 2015

Irrational Greek Government May Encourage Europeans to Purchase Gold

This Week’s Headlines:

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

GOLD

Last Friday Gold closed at $1,173.20 per ounce, down $28.70 for the week, and below the key $1,200 support/resistance level. The last four trading days of the week, Gold closed below $1,180 (the low end of the recent trading range).

Last week the Chinese Government ordered the fourth official interest rate cut in just seven months, as policymakers become increasingly concerned about the nation’s volatile equity markets and the prospect the country could miss its official growth target this year. This interest rate cut will result in increasing the amount of quantitative easing (money supply) and driving Gold higher.

This morning, Gold quickly rallied $10 per ounce on the escalation of the Greek debt crisis. The rally was short lived though, as a strong U.S. Dollar versus the Euro drove Gold back down, leaving it unchanged.

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Greek debt crisis worsens

After emergency weekend meetings on the Greek debt crisis, the talks between Greece’s government and the ECB and IMF fell apart. Greece ordered its banks to shut down on Monday (this morning) pending further capital controls. However, the European Central Bank has said it will maintain the emergency liquidity assistance which has been helping keep the Greek banking system solvent. It appears that banks will impose currency controls; only ATM’s will be open and only for withdrawals of a maximum of 60 Euros per day. The Greek banks will be closed until the July 5 national referendum. Fears and uncertainty over the consequences of next week’s referendum will of course cause Greek depositor withdrawals to accelerate sharply.

The Greek crisis has caused the European stock markets to drop 2 to 4%, and driven down the value of the Euro versus the U.S. Dollar and Japanese Yen. The long term effects of the Greek debt crisis should have a positive effect on European Gold demand. The following article will explain:
Irrational Greek Government May Encourage Europeans to Purchase Gold

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SILVER

Last week Silver closed at $15.73 per ounce, down $0.37 for the week. Silver could not rally above the key $16 per ounce support/resistance level the last four trading days of the week. $16 is proving to be a very important price level for Silver. If Gold can move above $1,200 per ounce, Silver should be able to stay above $16 per ounce.

The Silver/Gold ratio moved to an amazing 74.56-to-1.

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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. Platinum closed last Friday at $1,080 per ounce, and 1oz Platinum Maple Leafs were trading at a $62 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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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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