Weekly Market Report 10/26/15

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

China adds more gold to reserves in September

Russian central bank accumulates another 34.2 tonnes of Gold

China continues to hoard Gold

This Week’s Headlines:

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

GOLD

Last Friday Gold closed at $1,163 per ounce, down $20 for the week, but still up $48 for the month. Last week Gold traders took a short term trading profit, which is not uncommon for exchange traders. It appears that Gold has settled into an $1,150 to $1,190 trading range. I believe Gold will break out of this trading range in early November and test the very important long term $1,200 per ounce resistance level.

In this week’s recent informative articles (listed above) it is becoming very clear that major central banks around the world are stepping up their purchases of Gold. The very low current price is allowing the central banks to exchange their U.S. Dollars for metric tonnes of .9999 Gold. Many other central banks are focused on repatriating their Gold bars from the New York U.S. Federal Bank over domestic concerns and efforts to dump their U.S. Dollar holdings.

During the month of October, Gold broke above the key $1,150 resistance level and moved higher. The trading action during October is giving an excellent signal that the four year down market in the Gold price has ended.

Today: Gold is consolidating today, trading in a narrow $7 high/low trading range with a high of $1,169 and a low of $1,162 per ounce.

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SILVER

Last Friday, Silver closed at $15.83 per ounce, down $0.29 per ounce for the week, but up $1.30 since the start of October. Since the beginning of the month Silver has rallied over $16 per ounce 11 times, reaching a high of $16.20, but has not been able to stay above the key $16 per ounce resistance level.

Right now Silver does not show that it has enough demand to break above the key $16 per ounce short term resistance level. Silver reached a high of $16.10 per ounce last Friday, and that price generated professional short selling again. Many professional traders have developed an excellent and profitable strategy of selling Silver when it rallies above $15.90 per ounce and buying it back below $15.65. Traders are making a minimum of $0.25 per ounce on a 5,000 CME Silver contract, which amounts to $1,250 per contract less brokerage fees. Silver needs to break above $16.40 per ounce to change this strategy.

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

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 73.47-to-1.

Today: Silver is trading towards the upside this morning on fresh Asian demand. For the 12th time this month, Silver briefly broke above the key $16 per ounce resistance level today, but couldn’t hold.

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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 is beginning to drop, it is still at a ridiculous $3.95 over spot. Therefore 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 $1.29 over spot, and the popular Assay Office 1oz Silver trade units at only $1.25 over spot. 1oz .999 fine Silver trade units are by far the best Silver investment available right now.

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We have moved our office to better serve you

We have some exciting news to announce! We have moved our office to better handle our expansion and provide our clients with even better service! We are still in the same building at 5855 Topanga Canyon Blvd, CA 91367, but now in Suite 410. The phone numbers are still the same: 818-592-2800 & 888-454-0444. We look forward to continuing to offer you excellent service!

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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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