Weekly Market Report 7/13/15
Links to recent informative articles on precious metals and rare coins:
Mint releases details for 2015-W American Liberty, High Relief Gold coin
Iran brings 13 tons of Gold back home after latest round of nuclear talks
Gold
Fundamentals for a higher Gold price continue to strengthen
Silver
Platinum
US Mint announced 2015 High Relief
July 2015 CoinStats is now available
Recommended Investment Commitment and Diversification
Last Friday Gold closed at $1,157.90 per ounce, down $5.60 for the week. However, more importantly is what happened during the week. Last Wednesday Gold reached a low of $1,145.90 per ounce, very close to the 2015 low of $1,141.60 it reached on March 17 before seeing a $19 rally. In 2015, Gold traded below $1,150 per ounce seven times and quickly rallied back on excellent volume. We continue to show sizeable demand from European and Asian buyers when Gold trades at a bargain price. Remember European Gold investors saw a 10% gain last year in the Gold price, and another 8% this year-to-date.
Last Thursday the minutes from the Federal Reserve’s last meeting showed reluctance towards any near-term increase in interest rates, and the IMF lowered its forecast for global growth. Both of these announcements add strength to a long term increase in the Gold price.
Last Friday the Greek Prime Minister Alexis Tsipras presented plans for austerity measures, including pension cuts, to gain a new bailout package from European creditors. The plans include asking for a three-year loan of 53.5 billion Euros ($59 billion USD) and a commitment to help Greece restructure its massive debt. It is unclear whether this latest strategy reflects political determination to negotiate a deal that keeps Greece in the Eurozone. Over the weekend, finance officials from the 19 Eurozone countries began discussing Greece’s request for about $80 billion in new loans, which Greece needs in order to avoid bankruptcy and stay within the Euro community of nations. Greece needs to implement bold reforms and accept a high level of external economic supervision in return for a possible €82bn-€86bn.
Over the weekend a tentative deal with Iran was reached. The deal would limit their nuclear development in exchange for a lifting of the United Nations embargo.
This morning, Gold quickly dropped $9 per ounce, reaching a low of $1,151 per ounce, then rallied back $6 on heavy buying. The market-moving news this morning is the agreement, in principal, of a bailout for Greece.
Fundamentals for a higher Gold price continue to strengthen
While some financial institutions are still calling for Gold to reach $1,000 per ounce, I continue to believe we have seen the bottom of the market and that the price of Gold will move above the current $1,220 resistance level, and go much higher, very soon. The fundamentals for a major increase in the Gold price remain strong. Remember, last year Gold was up in every major currency except the U.S. Dollar.
Why will Gold move higher in all major world currencies? Let me share some of the reasons:
- Major military and political problems in the Middle East.
- Worldwide quantitative easing (money printing), especially in China, Japan, and Europe.
- The Greek $90 billion bailout will set the criteria for a bailout for Spain and Italy. This will result in the ECU printing a lot more Euro’s.
- Central Banks continue to trade their U.S. Dollars for Gold, thus building their Gold reserves.
- Extraordinary physical demand for Gold and Silver investment products in Asia and Europe.
- Global Gold production is dropping as cost of mining increases.
- Interest rates have reached historical lows worldwide.
Last Tuesday Silver set a new 2015 low of $14.62 per ounce on the highest CME trading volume of the week. For the remainder of the week, Silver showed excellent demand and moved higher all three days, closing on Friday at $15.48. Silver was only down $0.08 per ounce for the week. Physical and speculative demand picks up dramatically every time Silver breaks $15 per ounce. When Gold moves back above $1,200 per ounce, Silver should be able to rally back above the key $16 per ounce level.
The Silver/Gold ratio moved to an amazing 74.79-to-1.
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 week at $1,032 per ounce, and 1oz Platinum Maple Leafs are trading at an amazing $84 discount to the 1oz Gold Maple Leafs. The Canadian Platinum Maple Leaf is the best bullion coin on the market, with the lowest premium over spot Platinum.
US Mint announced 2015 High Relief Gold coin
The U.S. Mint just announced that it will be minting a 2015 High Relief Gold coin. The U.S. Gold coin will have a denomination of $100 and contain one troy ounce of .9999 24-Karat Gold. It will have a lustrous high relief surface, and a classic American Gold coin design. The mintage is limited to 50,000 from the West Point Mint. This is the first High Relief Gold coin since the 2009 Ultra High Relief, which will increase in demand once the 2015 is released. The 2015 High Relief will be released on July 30, 2015.
We will be offering the 2015 High Relief for pre-sale on our website as soon as possible. We will also be offering them for pre-sale in MS70 First Strikes from PCGS and MS70 Early Releases from NGC, with an estimated delivery for the MS70s of approximately August 30, 2015. We will be notifying all of our customers when our 2015 High Relief pre-sale offer is available.
July 2015 CoinStats is now available
Our numismatic CoinStats report is the best investment tool for rare coin investors. CoinStats is an in-depth statistical analysis of popular rare coin series that allows you to identify the best values in certified rare coins. I am proud to offer this unique and informative tool exclusively to our clients. CoinStats has been updated for July 2015 and is now available. Six different series are available: $20 Gold Saint Gaudens, $20 Gold Liberties, $10 Indians, Morgan & Peace Silver Dollars, and the Walking Liberty Half Dollars.
The CoinStats Report provides a list of my recommended certified U.S. Gold and Silver coins which are found listed on the Best Value page. These are not the modern issue bullion coins or low-grade circulated coins. These are PCGS/NGC Certified MS63 or higher Gold and Silver U.S. rare coins, dated prior to 1948, which have a proven track record of appreciation and also offer excellent liquidity. To receive the latest CoinStats analysis, just insert the word CoinStats in the subject line and email me which of the six series you would like to see.
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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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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