Weekly Market Report 08/31/15

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

India’s Gold demand to see four-year high in July-Dec period

How much Gold does the People’s Bank of China really own?

This Week’s Headlines:

Gold
Silver
Recommended Investment Commitment and Diversification

GOLD

Last week, after Gold rallied almost $100 per ounce (reaching a high of $1,169.80 on August 24) it finally had a minor correction. Gold is still on a short term rally, consolidating in an $1,120 to $1,150 trading range. Last Friday, Gold closed at $1,134 per ounce, up $39 for the month of August. It is interesting to note that Gold has seen 5 consecutive weeks of increased lows since bottoming out at $1,072 per ounce. We have also seen increased highs the past 3 consecutive weeks. This is very bullish for Gold if it can stay above the $1,120 support level.

The world’s equity markets had extreme volatility last week, with the Dow Jones Industrial average having over a 1,000 point high/low range. The U.S. Dollar rallied sharply last week, moving from $1.15 to the Euro to $1.10 to the Euro. In the face of a volatile equity market and a strong U.S. Dollar, the Gold price was able to stay more than $68 per ounce above the recent low.

Today: Gold is trading in a narrow $10 high/low range, from $1,125 to $1,135 per ounce.

Back to top of report

SILVER

Truly unbelievable, but Silver hit a record six year low last Wednesday of $13.91 per ounce. After hitting that low, the serious Silver buyers appeared and the price surged $.74 in just two days. Last week’s price decline has caused extraordinarily high demand for physical Silver investment products. That demand has driven the premium for U.S. Silver Eagles to over $4 again, because the U.S. Mint cannot keep up with the demand. The U.S. Mint has been producing U.S. Silver Eagles at a record pace of around 5 million coins per month in June, July and August of 2015, yet still has not caught up with demand. In contrast, last year the U.S. Mint produced only around 2 million Silver Eagles during June, July and August of 2014. It is amazing to see the demand for U.S. Silver Eagles increase 150%, and the demand is still growing.

Increasing demand in the face of a falling price is an interesting anomaly. When Silver fell below $14 per ounce on Wednesday, many of the technical traders shorted Silver in the futures markets and started the decline. But when it reached $13.91, a few major buyers appeared and rallied the price back above $14 at the close. Silver continued to move higher last Thursday and Friday, closing the week at $14.54 per ounce.

The Silver to Gold ratio is at a 2015 record high of 78.02-to-1.

Today: Silver found excellent demand below $14.50 per ounce on Asian markets in early trading. Physical demand continues to grow, as investors want to buy Silver investment products.

Back to top of report

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

Back to top of report

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.

Back to top of report