Weekly Market Report 9/28/15

| September 28 2015

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

Russians Buy 1 Million Ounces of Gold Bars in August

This Week’s Headlines:

Gold
Gold fundamentals are looking good
Moment of truth for the price of Gold
Silver
US 1oz Silver Eagle premium goes ballistic
Platinum
Recommended Investment Commitment and Diversification

GOLD

Last Thursday we saw a bullish breakout in the Gold price, based on the following four factors:

Increased buying from jewelers and bullion dealers in India, caused by the ongoing wedding season demand for physical Gold and Silver.
Weak equity markets around the globe.
A weak U.S. Dollar versus the Euro.
The Federal Reserve’s decision on September 17th not to raise interest rates was very bullish for Gold and Silver.

Gold broke out above its $1,150 per ounce resistance level last Thursday, reaching a high of $1,157 per ounce. For most of last Thursday’s trading Gold stayed above the $1,150 level. Gold could easily trade back into the $1,120 to $1,150 trading range, consolidating before the next breakout above $1,150 per ounce.

Today: This morning Gold was unable to move back above the $1,150 level in early Asian trading, only reaching a high of $1,148 per ounce before selling off.

Back to top of report

Gold fundamentals are looking good

I firmly 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 interest rates are low, making Gold/Silver an excellent alternative.
Global 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 goes higher.
Central Banks continue to trade their U.S. Dollars for Gold, thus building their reserves.
Stockpiles of Gold in exchanges and depositories continue to drop, filling heavy demand.

Back to top of report

Moment of truth for the price of Gold

I believe we are quickly going see the moment of truth for the 2015-16 direction of the Gold price. If we see Gold close below $1,100 per ounce multiple times within the next few weeks, we will probably test the 2015 low of $1,072 and that could be ugly, or the final clean out, before the new bull market appears. However, if Gold can move above the $1,150 per ounce resistance level and close multiple days on good volume, that will cause the professional traders to start buying Gold on dips. This would confirm a change in Gold’s four-year bearish trend, and the beginning of the road back to a new high of over $1,900 per ounce.

Back to top of report

SILVER

Silver tested the very important $15 per ounce support/resistance level last week, reaching a low of $14.69 last Wednesday. Silver closed last Friday at $15.11 per ounce, up $0.53 since the beginning of the month as trading volume continues to grow. It would be healthy for the Silver price to stay above $15 this week, hopefully heading to the next resistance level of $15.66 per ounce.

What really surprises me is the continued weakness in the price performance of Silver. This weakness is in the face of dramatic shortages of supply, which helps cause strong demand for physical investment products. Mints around the world are having problems sourcing enough .999 Silver to fill pending orders.

The U.S. Mint sold 4,935,000 U.S. 1oz .999 Silver Eagles in August 2015. Compare that 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 demand.

The Silver to Gold ratio is at 75.81-to-1.

Today: Silver got hammered this morning, breaking below the key $15 per ounce support level. Silver reached a low of $14.47 per ounce in early trading before seeing bargain buying.

Back to top of report

US 1oz Silver Eagle premium goes ballistic

This month the U.S. Mint should produce a little over 3 million Silver Eagles because of the current shortage of .999 fine Silver. This Silver shortage has resulted in the premium on U.S. Silver Eagles over Silver value to go ballistic. Some retailers are quoting as much as $10 per ounce over spot for Silver Eagles. U.S. 1oz Silver Eagles typically sell for about $3.25 over spot during normal times. We cannot recommend U.S. Silver Eagles at this outlandish premium, and are instead offering the popular 1oz .999 Silver Buffalo Trade Units at only $1.49 over spot. However, as a result we have been cleaned out of Silver Trade Units and they are currently back ordered about 4 weeks for physical delivery. We are still willing to sell them at the current price of $1.49 over spot, but please be aware that delivery will be delayed.

When the U.S. Mint catches up on its backlog, and the premium of Silver Eagles once again drops to realistic levels, we will be offering them again. The U.S. Mint will probably mint over 40 million 1oz 2015 Silver Eagles, so 2015 U.S. Silver Eagles will not be rare.

Back to top of report

Platinum

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 nine months. Platinum closed last week at $951 per ounce, and 1oz Platinum Maple Leafs are trading at an amazing $174 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.

Back to top of report

Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 30% of investment capital

Diversification: Gold 50%, Silver 40%, 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.

Categories: Weekly Market Report