Weekly Market Report 11/30/15

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

You can’t eat Gold or a debt sandwich

Russian Gold reserves grow by 600,000 ounces in October

Chinese savers turn to Gold as rest of the world exits holdings

This Week’s Headlines:

Gold
The classic Intra-Day reversal in the Gold price is coming soon
How do I feel about the Gold price?
Platinum
Silver
Recommended investment commitment and diversification

GOLD

Gold closed last Friday at $1,056.20 down $20.10 per ounce for the week and $85 since the beginning of November. After a brief rally last Tuesday (following the Turkish downing of a Russian jet fighter) the bears gained control of the market moving it lower on Wednesday and Friday. Last week, in spite of the ongoing terrorist worries in Europe and the Russian jet being shot down, the Gold price couldn’t move back above $1,080 per ounce.

The professional bears have complete control of the world’s Gold exchanges, not the physical markets. They short rallies and cover on dips and this strategy has been very profitable for the past few years. After talking with a few of these professional bears, I believe that this strategy will soon change because the fundamentals are becoming critically bullish. Commodity exchanges and ETF supplies are at record low levels, demand from central banks and the public have never been stronger, and the U.S. Dollar will weaken if the Federal Reserve raises interest rates in December.

The market demand for physical Gold investment products is very strong. The U.S. Mint announced on Tuesday that due to heavy demand they were sold out of 2015 1oz Gold Eagles. I don’t know if they will be offering more 2015 1oz Gold Eagles in December, or instead just start minting 2016 1oz Gold Eagles for delivery in January.

Today: This morning the U.S. Dollar approaches a new 10-year high versus the Euro. This, combined with the current trend, caused the Gold price to hit $1,053 per ounce this morning.

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The classic Intra-Day reversal in the Gold price is coming soon

The classic Intra-Day reversal in the price of Gold that I spoke about last week is clearly going to happen very soon. Gold, Silver, and Platinum all hit new 2015 lows during last Friday’s trading, at $1,052, $13.91, and $835.80 respectively.

By year-end I expect to see a classic Intra-Day reversal in the Gold, Silver, and Platinum prices. Gold will bottom out, with the price hitting a new 5-year low (around $1,000 per ounce) on very heavy futures exchange trading volume, and then rally, closing higher for the day. Similar activity will happen with GLD (the ETF paper Gold product). This will cause margin calls and stop loss selling, allowing the professionals to cover their short sales with a nice profit and go long on Gold. A classic Intra-Day reversal is very bullish for the price of Gold and is the sign the market has bottomed out and is heading higher. The turn in the price will be very quick and it is very difficult to buy at the low (it could happen during Asian trading).

Coincidentally, last year both Gold and Silver hit the lowest price for the year on December 1, 2014. On that day, both Gold and Silver experienced a classic Intra-Day reversal on very heavy volume. Gold then rallied from its low of $1,141.70 to over $1,300 per ounce in less than two months. Silver quickly rallied from its 2014 low of $14.16 to over $18.30 per ounce, also in less than two months. A strong U.S. Dollar stopped the rally when Gold and Silver hit their 2014 highs.

If you are thinking about adding to your Gold, Silver, or Platinum holdings at a very attractive price, start getting your money together.

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How do I feel about the Gold price?

In recent conversations with a few of my long term clients, I was accused of being negative on the direction of the Gold price. Nothing can be further from the truth. Let me say in no uncertain terms, my feeling about the long term outlook for Gold hasn’t changed since I wrote my 40-page booklet last year titled, "GOLD: REAL MONEY, Your Ultimate Protection Against Inflation and Deflation.” Please read this informative booklet at www.coinmag.com or email me and request a copy.

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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 $835 per ounce, and 1oz Platinum Maple Leafs are trading at an amazing $180 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, closing last week at $14.01 per ounce on Friday, down $0.08 per ounce for the week, and down $1.55 since the start of November. Silver trading was clearly in the hands of the bears last week, reaching a low of $13.91 on Wednesday.

Please read my “classic Intra-Day reversal” section above. I believe that like Gold, Silver will also see this classic Intra-Day reversal happen. I can only guess as to whether Gold or Silver will see it first, but I strongly believe it will happen before year end.

Today: Silver sold off with Gold this morning, reaching a low of $13.99 per ounce. Then Silver found bargain buyers who rallied the price back up to $14.15 per ounce.

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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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