Weekly Market Report 10/5/15

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

Donald Trump Loves Gold

Chinese And Russian Central Bank Continue To Add Gold To Official Reserves: 16 & 31 Tonnes In August

Mints struggle to keep up with silver coin demand

This Week’s Headlines:

Gold
Silver
Mints struggle to keep up with Silver coin demand
Platinum
Recommended Investment Commitment and Diversification

GOLD

After reaching a three week high of $1,156.40 on September 24, Gold was driven down over the next six trading days, reaching a low of $1,103.80 last Friday. Last Friday, a weak U.S. Jobs report for September was released by the Labor Department. Immediately following the disappointing Jobs report the Dow Jones dropped 260 points, the U.S. Dollar fell 2%, and Gold rallied $37 per ounce. As the day continued, the Dow Jones moved from down 260 points to up 200 points, the U.S. Dollar rallied back to unchanged, but amazingly, the day’s Gold rally held.

Last Friday, Gold closed at $1,136.60 per ounce, up $23 for the day, but down $9 for the week. Trading volume last Friday was the highest for the week, at 190,424 hundred-ounce December Gold contracts on the CME exchange. $1,100 per ounce continues to be a major support area, and a key level for technical analyst and professional commodity trader support. I look for Gold to trade in the $1,120 to $1,150 per ounce area for a week or two, then make another attempt to break above the important $1,150 resistance level.

Physical demand continues to remain strong with the world’s central banks, lead by the central bank of Russia, who purchased 41 metric tonnes of Gold during the month of August. The Chinese were also very active in August, as their central bank purchased 16 metric tonnes of Gold. For the complete story, and why these central banks are replacing their U.S. Dollar holdings with physical Gold, click on the following link: Chinese And Russian Central Bank Continue To Add Gold To Official Reserves: 16 & 31 Tonnes In August.

Today: This morning Gold is holding last Friday’s rally, trading between $1,130 and $1,142 per ounce on excellent volume. This is surprisingly good in the face of a stronger U.S. Dollar and Stock Market.

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SILVER

Last Friday Silver closed at $15.26 per ounce, the highest closing price since August 21. Last week’s low of $14.36 per ounce occurred on Friday, but when the disappointing Jobs report was released Silver jumped $.90 per ounce. It would be very healthy for the Silver price to stay above $15 this coming week, hopefully heading to the next resistance level of $15.66 per ounce.

The Silver to Gold ratio is at 74.48-to-1.

Today: Silver continues Friday’s rally, moving above the $15.66 per ounce resistance level. Silver reached a high this morning of $15.73 before seeing some short term profit taking.

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Mints struggle to keep up with Silver coin demand

Since the beginning of the year I have been talking about the extraordinary demand for Silver investment products around the globe. Mints around the world are having problems meeting the demand for Silver coins and bars. The following article provides information on the shortages many of world’s most popular mints are currently dealing with: Mints struggle to keep up with silver coin demand.

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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 $910 per ounce, and 1oz Platinum Maple Leafs are trading at an amazing $200 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.

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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.

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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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