Weekly Market Report 10/19/15

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

Is Silver’s Break Out An Early Bullish Signal For Gold?

Insuring Wealth against Unprecedented Risk

This Week’s Headlines:

Gold
Silver
Silver .999 Buffalo & Assay Office 1oz Trade Units are available
Recommended Investment Commitment and Diversification

GOLD

Last week Gold moved higher during four of the five trading days, moving from a low of $1,154 to a high of $1,191 per ounce. Last Friday Gold closed at $1,183.10 per ounce, up $27.50 for the week and up $68 for the month. Trading volume in the world’s Gold future exchanges has been increasing this month during many of the best up days. I would like to see Gold trade between $1,150 and $1,180 per ounce for a while to consolidate the recent gains.

During the month of October Gold broke above the key $1,150 resistance level and moved above the 200 Day Moving Average of $1,176 per ounce. Much of last week’s rally in Gold was due to professional short covering, and fresh buying coming primarily from Asia and Russia. The trading action during the first three weeks of October is giving an excellent signal that the four year down market in the Gold price has ended. I believe we will see Gold establish a new trading range between $1,150 and $1,190, building up a bullish sentiment for a serious attempt to break above the $1,200 per ounce long term resistance level soon.

Today: Gold sold off this morning by 1% in early Asian trading. After this month’s $68 increase, it is normal (and still bullish) to see the market establish a new higher trading range.

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SILVER

Last Friday, Silver closed at $16.11 per ounce, up $0.29 per ounce for the week and up $1.60 since the beginning of October. Silver closed above $16 per ounce three days last week, but during trading on those same three days the low for Silver was below $16. This shows me that many traders are still bearish on Silver and are selling Silver short when it rallies above $16 per ounce.

While physical demand for Silver investment products has been extraordinarily strong, the world’s commodity future exchanges have been a lot different. Why is this happening? I can’t explain it and it clearly doesn’t make sense, but at some point in the near future Silver will go ballistic because of physical shortages.

If I’m right about Gold and it establishes an $1,150 to $1,190 trading range, Silver could test support at around the $15.50 level. However, as Gold moves forward, nearing the higher end of the trading range or going above $1,200 per ounce, the trading volume in Silver will pick up and the price will move higher quickly. A break above $1,200 in Gold could easily cause Silver to rally sharply, breaking the $16.40 per ounce resistance level.

Looking at Silver as a great long term opportunity, it is an outstanding investment. The risk reward ratio is exceptional. At current price levels your risk could be as high as $1.50, but your reward on a short term basis is easily $5 per ounce, or $20 per ounce over the next year or two. Plus, the Silver/Gold ratio is currently over 73-to-1. The best way to invest in Silver right now is in the 1oz .999 Silver trade units at the current low premium.

The Silver to Gold ratio is at 73.42-to-1.

Today: Silver sold off with Gold this morning, dropping 2% and reaching a low of $15.73 per ounce in early trading. Hopefully, Silver will develop a trading range above $15.70 per ounce.

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Silver .999 Buffalo & Assay Office 1oz Trade Units are available

While the premium on the U.S. Mint 1oz Silver Eagles remains at a ridiculous $4.60 over spot, we continue to recommend the high quality 1oz .999 Silver Buffalos and Assay Office trade units at 1/3 of the Silver Eagles premium. We have cleared up our sales back log and now have available the 1oz .999 Silver Buffalo trade units at only $1.35 over spot, and the popular Assay Office Silver trade units at only $1.25 over spot. 1 ounce .999 fine Silver trade units are by far the best Silver investment available right now.

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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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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.

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