Weekly Market Report 11/16/15

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

One of America’s Largest Online Retailers is Stockpiling Gold & Silver Coins to Pay Employees in Coming Crisis

Central Banks Snapping Up Gold at Near-Record Pace

Gold: Primed for Recovery

Silver Institute Silver Report Oct 2015

World Gold Reserve Changes Year to Date

This Week’s Headlines:

Gold
Understanding the effects of the U.S. Dollar on Gold’s value
Last Friday’s Paris terrorist attack effect on the Gold price
Gold price at an important crossroad
Platinum
Silver
Recommended Investment Commitment and Diversification

GOLD

Gold closed last Friday at $1,080.90 down $6.80 per ounce for the week and $60.50 since the beginning of the month. After breaking below the key $1,100 support level on November 6, I was hoping it would rally back last week, but it didn’t. Gold did reach a weekly low of $1,073 last Thursday ($1 above the 2015 low) and quickly rallied back on bargain buying.

Today: What happened last night in Asia when the Gold market opened after the ISIS attack in Paris? Gold quickly rallied up $16 per ounce, reaching a high of $1,098 on fresh buying. Then, as the Gold market rolled into European and U.S. trading, the price sold off. Many traders, seeing that the strength of the rally couldn’t move it above the key $1,100 resistance level, decided to short sell the market, which drove the price back down to $1,084.

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Understanding the effects of the U.S. Dollar on Gold’s value

I want to reiterate to U.S. Gold investors that the value of Gold in U.S. Dollars is down $90 (7.61%) since the start of 2015. However, if you were a European and looked at the value of Gold in Euros, it is up 47 Euros (4.71%) since the beginning of the year. Additionally, many other major European, Asian, and South American countries have seen their currency devalued against the U.S. Dollar in the past year. Therefore, Gold valued in the domestic currencies of many foreign countries is seeing an increase in the Gold price this year.

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Last Friday’s Paris terrorist attack effect on the Gold price

Last Friday’s ISIS planned and coordinated terrorist attacks in Paris that killed over 130 people is an extraordinary escalation of violence by Pro-ISIS radicals. This terrible attack was called an “Act of War” by the President of France. Any increase in world violence, especially wars and/or disruptions in the world’s financial system, normally causes the value of Gold to increase. Gold is the “ultimate safe haven” in times of unrest.

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Gold price at an important crossroad

After breaking below the important $1,100 per ounce support level, what is coming next for the Gold price? Gold’s five year low of $1,072 per ounce was reached on July 24. If Gold doesn’t rally back above the $1,100 per ounce level very soon on heavy volume, I believe it will re-test the low before year end. Like I have said before, I believe Gold will reach its five year low this year and start its major rally to a new all-time high (above $1,920 per ounce) in the next couple years.

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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 twenty years, and Platinum rarely stays at a discount to Gold for more than a year. Platinum closed last week at $863 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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SILVER

Silver continued its recent decline, down all five trading days last week. Silver closed at $14.20 per ounce last Friday, down $0.49 per ounce for the week, and down $1.36 since the start of November. Silver trading was clearly in the hands of the bears last week, as it hit a lower low every day, reaching $14.14 on Friday.

Today: Silver moved up with Gold in Asian trading, reaching a high of $14.48 per ounce, but quickly sold off in European and U.S. trading, dropping back to $14.19.

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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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