Weekly Market Report 11/2/15

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

Gold Prices: How Gold Will Beat Stocks in 2016

Gold Prices to Witness Surge in 2016?

Ron Paul Has Incredible Reaction to Donald Trump’s Attack on Gold Bugs

China central bank sees ’very normal’ growth of 6-7 percent in next few years

This Week’s Headlines:

Gold
Gold fundamentals are looking good
Silver
World mints struggle to keep up with Silver coin demand
November 2015 CoinStats is now available
Recommended Investment Commitment and Diversification

GOLD

Last Friday Gold closed at $1,141 per ounce, down $22 for the week, but still up $26 for the month of October. During the month of October Gold did reach a high of $1,191 per ounce before seeing some short term profit taking. I was really looking for Gold to break above the very important $1,200 resistance level in October. As Gold moves into a bargain price, I believe we will see sizeable Asian and central bank buying this week, which should give the markets some price support.

I was disappointed to see Gold break below the $1,150 per ounce support level in late trading last Wednesday. This breakdown was caused by the Federal Reserve stating that they would leave interest rates unchanged for right now, but signaled that a December rate hike was still on the table. I hope to see the Gold price move back above the key $1,150 level early this week, otherwise we could test the long term $1,100 per ounce support level in early November.

Today: Gold continues its recent sell off this morning, reaching a low of $1,132 per ounce in early Asian trading.

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:

1. Physical demand for Gold and Silver investment products is at the strongest level in years.
2. Worldwide interest rates are low, making Gold/Silver an excellent alternative
3. Global quantitative easing (money printing) in the U.S., China, Japan, and Europe is increasing at an unbelievable rate.
4. Gold mine production is falling dramatically as the cost of production goes higher.
5. Central Banks continue to trade their U.S. Dollars for Gold, thus building their reserves.
6. Stockpiles of Gold in exchanges and depositories continue to drop, filling heavy demand.

Back to top of report

SILVER

During the month of October, Silver traded above the key $16 per ounce level thirteen times, reaching a high of $16.37, but could not hold. The professional commodity traders again were able to execute their bearish strategy, profitably shorting Silver. Last Friday Silver closed at $15.56 per ounce, down $0.26 for the week, but up $1.05 since the beginning of October. In the last few trading sessions Silver has shown excellent demand above the $15.50 level, in spite of continued weakness in the Gold Price. This strength could have been caused by traders covering their profitable Wednesday short sales; we will see early on this week.

The Silver to Gold ratio is at 73.22-to-1.

Today: Today: Silver broke with Gold, moving below its recent $15.50 per ounce support level, reaching a low of $15.25 before finding strong demand.

Back to top of report

World mints struggle to keep up with Silver coin demand

Physical demand for Silver investment products continues to be strong worldwide. The U.S. Mint could reach the 45 million production mark for the U.S. 1oz .999 Silver Eagles in 2015. Since the beginning of the year the world’s mints have experienced 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

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 1oz .999 Silver trade units at the current low premium.

Back to top of report

November 2015 CoinStats is now available

Our numismatic CoinStats report is the best investment tool for rare coin investors. CoinStats is an in-depth statistical analysis of popular rare coin series that allows you to identify the best values in certified rare coins. I am proud to offer this unique and informative tool exclusively to our clients. CoinStats has been updated for November 2015 and is now available. Six different series are available: $20 Gold Saint Gaudens, $20 Gold Liberties, $10 Indians, Morgan & Peace Silver Dollars, and the Walking Liberty Half Dollars.

The CoinStats report provides a list of my recommended certified U.S. Gold and Silver coins which are found listed on the Best Value page. These are not the modern issue bullion coins or low-grade circulated coins. These are PCGS/NGC Certified MS63 or higher Gold and Silver U.S. rare coins, dated prior to 1948, which have a proven track record of appreciation and also offer excellent liquidity. To receive the latest CoinStats analysis, just insert the word CoinStats on the subject line and email me which of the six series you would like to see.

Back to top of report

We have moved our office to better serve you

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!

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.

Back to top of report