Weekly Market Report 8/17/15

| August 17 2015

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

This Week’s Headlines:

Gold
Silver
Rare Coin Report
U.S. Mint sold out of 2015 Gold High Relief
Recommended Investment Commitment and Diversification

GOLD

After watching Gold trading in commodity exchanges around the globe on Friday, August 7, I felt the price had seen its lows for the year. That is why the headline for last week’s Weekly Market Report was, “Gold and Silver start their long awaited rally.” However, I really wanted strong confirmation of this and was hoping to get that confirmation if Gold could stay/close above the key $1,100 resistance level all five trading days last week. I got it.

Last Friday Gold closed at $1,112.70 per ounce, up $18.70 for the week, and up $40 per ounce since the July 24 yearly low of $1,072.30. During the week we did see Gold rally to a high of $1,126.30 last Thursday on excellent physical and contract demand. There will be some resistance above $1,120 per ounce, but if Gold continues to stay above $1,100 the bullish sentiment will remain in place.

I believe the Gold price has bottomed out this year and the fundamentals have never looked better for the price to continue higher:

Physical demand for Gold and Silver investment products is at the strongest level in years.
Worldwide quantitative easing (money printing) in the U.S., China, Japan, and Europe is increasing at an unbelievable rate.
Gold mine production is falling dramatically as the cost of production is higher than spot Gold.
Central Banks continue to trade their U.S. Dollars for Gold, thus building their Gold reserves.
Stockpiles of Gold in exchanges and depositories continue to drop to fill consumer demand.

Today: Gold moved higher since the Asian opening at $1,113 per ounce. The rally took the price up to a high of $1,123 per ounce before seeing any serious selling. Both futures markets and physical Gold products demand remain strong. Consolidating the recent gains in the Gold price would be very healthy for the market.

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SILVER

Last Friday Silver closed at $15.21 per ounce, up $0.39 for the week. Last week Silver moved above the key $15.00 per ounce resistance level, and closed above that level all five trading days. Silver did reach a recent high of $15.57 per ounce last Thursday and settled back into a trading range between $15.20 and $15.50 per ounce. $16.00 per ounce is the next major resistance level for Silver, and a key number in changing the negative sentiment of professional commodity traders.

Today: Silver opened at $15.20 per ounce in the Asian market this morning and quickly rallied with good demand as the Gold market moved higher. Silver showed resistance as it approached the $15.50 per ounce level. After Silver’s recent gains it would be very healthy for the price to consolidate in the $15.20 to $15.50 per ounce trading range.

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Rare Coin Report

I just returned from the World’s Fair of Money (the largest rare coin convention of the year) in Chicago, Illinois. The convention gave me the opportunity to meet with my peers from around the world and discuss the rare coin and precious metal markets. I had the pleasure of speaking with many dealers, market analysts, and professional commodity traders last week. We discussed supply and demand for the precious metals, and which series of rare coins are undervalued. Most of the professionals I spoke with shared my opinion on the current outlook for precious metals. As for which series of rare coins are undervalued, many of them felt it was Morgan & Peace Silver Dollars, followed closely by $20 Gold Saint Gaudens.

Many of the conversations at the convention were focused on the global shortage for physical precious metal investment products. Many dealers and distributors report record low inventories and allowing back orders for many of the popular bullion items. The world’s major mints cannot keep up with demand, and premiums on many of the freshly minted bullion Gold, Silver, and Platinum coins have increased.

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U.S. Mint sold out of 2015 Gold High Relief

On July 30, 2015 at 12 noon Eastern time, the U.S. Mint started accepting orders for the 2015 High Relief Gold coins. This U.S. Gold coin has a denomination of $100 and contains one troy ounce of .9999 24-Karat Gold. It has 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 the 2009 demand. The 2015 High Relief was released on July 30, 2015.

Within the first 75 minutes after orders opened, the U.S. Mint sold 30,000 coins. At that point the U.S. Mint stopped accepting orders and put ’Currently Unavailable’ on the website. Although the U.S. Mint hadn’t reached the mintage limit, it is believed they sold out of available coins. The U.S. Mint’s website now currently shows the 2015 High Relief as ’Back Order’. The remaining 20,000 coins will probably not receive the First Strike or Early Release holders from the grading services.

Our company was successful in ordering the 2015 High Reliefs and we were able to offer a pre-sale to our clients for a limited time. We are now waiting to receive our allocation and submit them to PCGS and NGC for grading. We are hoping to receive our MS70 First Strikes from PCGS and MS70 Early Releases from NGC between August 30 - September 15, 2015, but it is up to the U.S. Mint and the grading services now.

We are currently accepting requests for 2015 High Relief coins graded PCGS MS70 First Strike and NGC MS70 Early Release, and expect to reopen sales immediately after we receive the grading results from both PCGS and NGC. If you are interested in MS70 First Strikes or Early Releases, please e-mail or call us to let us know. We expect to receive the coins we submitted to PCGS and NGC later this month, and will immediately ship them to our clients. Thank you.

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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.

Categories: Weekly Market Report