Weekly Market Report 9/8/15

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

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

The many uses of Gold

U.S. Mint Silver Eagle sales continue on record-setting course

This Week’s Headlines:

Gold
Silver
Recommended Investment Commitment and Diversification

GOLD

All five trading days last week Gold closed between $1,121.40 and $1,139.80 per ounce on the CME commodity exchange, closing on Friday at $1,121.40, down $12.60 for the week. For most of last week’s trading Gold stayed between $1,120 and $1,150 per ounce, consolidating after its recent gains from the July 24 low of $1,072. However, the low for the week during intra-day trading was $1,115.70 per ounce. It would be bullish for Gold if this week’s lowest trading prices were higher, resulting in what technical traders call ’higher lows’. Remember that although Gold has made a short term rally, the long term support level is still $1,200 per ounce, while the long term resistance price is $1,300 per ounce.

Last Friday it was reported that the U.S. economy added 173,000 jobs in August, and the unemployment rate has fallen to 5.1%. Initially, this news drove the price of Gold down to $1,115.70 per ounce, below the key $1,120 short term support level. However, buying appeared at the lows and the price rallied back to $1,125 per ounce.

Today: Fresh buying hit the Gold market this morning, as the price bottomed out overnight in the Asian markets at $1,118 per ounce. Gold continues to stay above the key short term support level of $1,120 per ounce.

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SILVER

Last week the Silver price closed all five trading days in a very narrow $0.15 high/low range, from $14.55 on the low to $14.70 per ounce on the high. Last Friday Silver closed at a weekly low of $14.55, up $0.01 for the week. Ever since reaching a six year low of $13.91 on August 26, the price of Silver has stayed above the important $14.00 per ounce support level on excellent demand. The $15 per ounce resistance level is very important to the short term direction of Silver. Silver did reach a high of $14.95 per ounce last Thursday, but was met with professional short sales. This selling caused the price of Silver to close at $14.70 per ounce at day’s end.

Physical demand for Silver investment products continues to be strong worldwide. The U.S. Mint almost reached the 5 million production mark for the U.S. 1oz .999 Silver Eagles in August. The actual mintage of Silver Eagles was 4,935,000 coins for August 2015. Compared to the 2,087,500 Silver Eagles produced in August 2014, that’s an almost 150% increase in Silver Eagle production, yet the U.S. Mint still cannot satisfy Silver Eagle demand.

The Silver to Gold ratio is at a 2015 record high of 77.08 to 1.

Today: Silver looks to be taking another run at the $15 per ounce resistance level. Silver showed excellent demand this morning above the $14.50 level.

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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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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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