Weekly Market Report 12/7/15

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

Turn your Gold and Silver Losses into a Tax Advantage

Sales of American Eagle silver bullion coins break 2014 record

Mint sells last of 2015 American Eagle 1-ounce gold bullion coins

This Week’s Headlines:

Gold
Tax Benefits for your Gold & Silver holdings
Platinum
Silver
Recommended Investment Commitment and Diversification

GOLD

Last week the European Central Bank cut its deposit rate to -0.30%, this rate determines the cost of borrowing for banks at the ECB’s weekly auction. This news hit the market on Friday along with an announcement from the U.S. Labor Department that the economy added 211,000 jobs in November, keeping the unemployment rate steady at 5%. The combination of these two factors caused precious metals to rally sharply.

Last Thursday Gold reached a six-year low of $1,045 then rallied $42 per ounce in two days, reaching a high of $1,088 on excellent trading volume. The CME trading volume on Friday was the highest it has been since August 24, 2015. The big question is: Was last Thursday/Friday’s trading the Intra-Day reversal I have been looking for? This week’s trading is very important and could answer that question. Hopefully, Gold will continue the rally and move above $1,100 and become bullish again. Or, Gold could sell-off and make a new low below the $1,045 per ounce level by year end.

Another positive sign for the short term outlook for the Gold price is the recent price increase in Gold equities. Many of the popular Gold mining stocks, i.e. Newmont, Barrick Gold, and Goldcorp, have rallied on days Gold traded lower, which you rarely see. I don’t recommend Gold stocks for several good reasons that I have explained in the past, however they are an excellent indicator.

The market demand for physical Gold investment products is very strong. Public and Central Bank buying has never been higher. The U.S. Mint announced that due to heavy demand they were sold out of 2015 Gold 1oz Eagles. The Mint is not offering any more 2015 Gold 1oz Eagles and will start minting 2016 1oz Silver and 1oz Gold Eagles for delivery in January.

Today: This morning the U.S. Dollar moved higher versus other currencies. The move is based on Friday’s upbeat U.S. jobs data that reinforced expectations that the Federal Reserve will raise interest rates next week. The Dollar rally caused Gold to drop $10 per ounce.

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Tax Benefits for your Gold & Silver holdings

As we approach the end of 2015, I believe there is an extraordinary opportunity to take advantage of this year’s drop in Gold & Silver prices. Let me explain how you can turn your paper loss in your precious metal holdings into an Asset. I’ve explained your options and how this tax strategy works in the follow article: www.mintstategold.com/investor-education/cat/news/post/2015_tax_strategy/.

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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 $880 per ounce, and 1oz Platinum Maple Leafs are trading at an amazing $150 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 reached a seven-year low last Thursday of $13.81 per ounce. Silver then quickly rallied along with Gold, increasing $0.71 and closing at $14.52 on Friday. Friday’s trading volume of 57,707 March CME 5,000-ounce Silver contracts was the highest I have seen in the past couple weeks. $15.00 per ounce is an important short term resistance level. If Silver can cross that level this year it would be a good sign of a bullish turn in the market.

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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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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.

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