Weekly Market Report 9/14/15

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

Gold Prices to Hit $1,900 by 2016?

U.S. Mint sales of Silver American Eagle bullion coins continue on record-setting course

This Week’s Headlines:

Gold
Silver
Long Beach Coin Expo this week
Recommended Investment Commitment and Diversification

GOLD

Gold hit a weekly low of $1,097.70 per ounce (below the important $1,100 resistance level) last Friday. However, Gold never closed below $1,100 any of the five trading days last week. For most of last week’s trading Gold stayed between $1,105 and $1,121 per ounce, closing on Friday at $1,103.40, down $18.10 for the week.

The recent weakness in the Gold price has been caused by strong U.S. economic data, an outflow from bullion-backed exchange traded funds, and fears that the Federal Reserve will announce an interest rate increase this week. Many economists believe it is likely the Fed will move on interest rates this year, but for now a tighter Fed and stronger dollar are both keeping a lid on Gold. However, I believe when we see the first ¼ percent increase in interest rates, we will have seen the bottom for the Gold price and the bullish rally will start.

The increased Gold demand continues, bolstered by official Chinese demand. The People’s Bank of China (PBOC) added another 15.98 tonnes of Gold in August – at the same time that its foreign exchange reserves fell a whopping $94 billion. The Chinese continue to diversify out of the dollar and into Gold.

Today: This morning Gold is trading in a very narrow $6 high/low range from $1,110 to $1,104 per ounce. Traders are waiting for this week’s interest rate announcement from the Federal Reserve.

Back to top of report

SILVER

Last week the Silver price closed between $14.50 and $14.75 all five days. We did see the weekly low of $14.25 per ounce during trading on Friday, but the price rallied and closed at $14.50 per ounce by the end of Friday’s trading. The bigger long term picture still remains the same, $14 is the key support level ($13.91 per ounce is the 6-year low) while a confirmed move above $15 will turn many of the professional commodity traders bullish. Based on past history, a Gold move below $1,100 per ounce could trigger a major decline in Silver, possibly below $14 per ounce. However, in the past two weeks I have seen much more support for the Silver price than the Gold price, driving the Silver to Gold ratio up to 76-to-1, from 78.6- to-1.

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 76-to-1.

Today: Silver has broken down below the recent $14.50 per ounce support level this morning. Silver hit a low of $14.35 per ounce in early Asian trading before bouncing back $0.06.

Back to top of report

Long Beach Coin Expo this week

This week I will be in Long Beach, California for the Long Beach Coin Expo. If you are in the Long Beach Convention Center area this Thursday or Friday say hello, we are at table #826. This rare coin convention should be well attended and I am hoping to fill our clients’ rare coin want lists. As the high end certified investment quality rare coin market soars, I am seeing increasing demand from our clients for the CoinStats recommended Gold and Silver coins.

For the past year I have been reporting from the major coin conventions that demand for investment quality Gold and Silver U.S. rare coins has continued to grow, while most dealer’s inventories have been at very low levels. These fundamentals are an outstanding harbinger of much higher prices coming very soon. Many of the dealers who attend these conventions have reported raising both their ask and bid prices for many of their Gold and Silver rarities.

If you haven’t already sent in your rare coin want list to David or me, please email me your list of coins needed ASAP.

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