Precious metals bounced higher Friday but Thursday’s bloodbath assured weekly declines that stacked to 6.9% for gold, 9.1% for silver, 5.4% for platinum and 7.8% for palladium.
On Friday, gold for August delivery rose $5.80, or 0.5%, to settle at $1,292.00 an ounce on the Comex in New York. Prices in the previous session tumbled $87.80, or 6.4%, as the yellow metal closed at its lowest point since September 2010. Losses were spurred after Federal Reserve Chairman Ben Bernanke said Wednesday that the central bank could begin scaling back its stimulus measures later this year.
"The sell off from the Fed’s announcement, as well as recent declines on concern about an impending Fed easing of stimulus, is overdone," Bloomberg quoted Adrian Day, who manages about $135 million of assets as the president of Adrian Day Asset Management in Annapolis, Maryland. "Monetary policy globally remains very accommodative," added Day.
Surveys on Gold Prices for Next Week
Weekly gold surveys suggest further declines. Participants in Bloomberg’s survey were the most bearish since January 2010 with 15 participants expecting prices to fall next week, 6 forecasting gains and 5 neutral. Kitco’s survey showed only a touch less bearish sentiment.
"This week’s survey had smaller-than-normal participation, with 19 of 36 regular respondents taking part. Of those, 11 see prices down, while four see prices up and four look for sideways consolidation," notes Kitco News.
"Some look for the market to continue to factor in scaled-back quantitative easing in the U.S., following Federal Reserve commentary this week, which would continue to pressure gold… Some looking for an uptick in gold, however, suggest the market has over-reacted as it factored in future scaling back of monetary stimulus…"
Gold prices this year have fallen to the tune of $383.80, or 22.9%.
Silver, Platinum and Palladium Futures
Rounding out precious metals futures in New York on Friday:
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Snapping a four-session losing streak and also after closing to their lowest level since September 2010, silver prices for July delivery inched up 13.6 cents, or 0.7% to $19.96 an ounce. The precious metal plummeted $1.80, or 8.3%, on Thursday. Silver gave back $2 this week.
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September platinum added $5.70, or 0.4%, to finish at $1,369.50 an ounce. Platinum on Thursday stumbled $60.10.
- Enjoying the strongest gains among precious metals, palladium for September delivery advanced $9.65, or 1.5%, to end at $674.75 an ounce. It sank $31.30 on Thursday.
For the year-to-date, silver prices have dropped a staggering $10.27, or 34%. Losses in PGMs total 11.2% for platinum and 4.1% for palladium.
London Fix Precious Metals
London precious metals fixings were mixed Friday with silver and platinum adding to their prior day’s deep declines and gold and palladium rising slightly. When comparing the Thursday PM to Friday PM London Fix prices:
- Gold climbed $2.75, or 0.2%, to $1,295.25 an ounce,
- Silver prices fell 37 cents, or 1.8%, to $19.87 an ounce,
- Platinum declined $26, or 1.9%, to $1,365 an ounce, and
- Palladium added $2, or 0.3%, to $672 an ounce
As for the week and like New York precious metals futures, London bullion fixings plummeted. Percent losses weighted by severity were silver by 8.4%, palladium by 7.7%, gold by 6.9% and platinum by 5.7%.
US Bullion Coin Sales in June
In a reversal from last week, demand for United States Mint bullion products increased sharply for gold coins but edged down for silver coins. In weekly bullion breakdowns:
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Gold coins surged 23,000 ounces after gaining a relatively modest 7,500 ounces in the previous week. Splits were 20,000 ounces in 22-karat American Gold Eagles and 3,000 ounces in 24-karat American Gold Buffalo coins.
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Silver coins advanced 801,500 ounces compared to the previous weekly total of 881,500 ounces. Splits were 800,000 ounces in American Silver Eagles and 1,500 ounces in America the Beautiful Five Ounce Silver Bullion Coins. All of the America the Beautiful sales came from Perry’s Victory coins with U.S Mint distributors ordering 300.
In the notable column, American Silver Eagles with year-to-date sales of 24,196,500 remain on pace to set an annual record. Silver Eagles notched their current annual sales record in 2011 at just below 40 million. That year, it took until July 18, 2011 for sales to reach where they are now for this year’s coins. Last year’s sales did not hit this year’s level until September 17, 2012.
The following are daily, June and year-to-date bullion coin totals as provided by the United States Mint.
| American Eagle and Buffalo Bullion Coin Sales | |||||
|---|---|---|---|---|---|
| Friday Sales | Last Week | Weekly Sales | June Sales | YTD Sales | |
| $50 American Eagle Gold Bullion Coins | 9,000 | 3,500 | 19,000 | 36,500 | 532,000 |
| $25 American Eagle Gold Bullion Coins | 0 | 0 | 0 | 0 | 42,000 |
| $10 American Eagle Gold Bullion Coins | 0 | 0 | 4,000 | 4,000 | 82,000 |
| $5 American Eagle Gold Bullion Coins | 0 | 15,000 | 0 | 45,000 | 405,000 |
| $50 American Buffalo Gold Bullion Coins | 2,000 | 2,500 | 3,000 | 10,000 | 154,500 |
| White Mountain 5 oz. Silver Bullion Coins | 0 | 1,200 | 0 | 1,200 | 27,000 |
| Perry’s Victory 5 oz. Silver Bullion Coins | 0 | 5,900 | 300 | 14,200 | 14,200 |
| American Silver Eagle Bullion Coins | 60,000 | 846,000 | 800,000 | 2,428,000 | 24,196,500 |
Figures above are in the number of coins sold, not in ounces.
US Silver Coin Melt Values in June and 2013
Melt values of silver coins plunged with silver this week. Those interested in "junk silver coins" for their melt values must decide if now is the time to buy at what could be bargain prices or wait for possible greater declines.
The following table shows melt values for older circulating U.S. silver coins. These coins, at least those that have little or no real numismatic worth because they are common or too worn, are the ones often sought for their melt values. Coin melt values shown are based on the London silver Fix prices at the end of 2012, on May 31 and on June 21. For reference, melt values of newer bullion silver coins are also provided.
| US Silver Coins | Silver Coin Melt Values (12/31/2012) | Silver Coin Melt Values (5/31/2013) | Silver Coin Melt Values (6/21/2013) | Net Change in June | Net Change Year-To-Date |
|---|---|---|---|---|---|
| 1942-1945 Jefferson Nickels | $1.68 | $1.27 | $1.12 | -$0.15 | -$0.57 |
| 1892-1916 Barber Dimes | $2.17 | $1.63 | $1.44 | -$0.20 | -$0.73 |
| 1916-1945 Mercury Dimes | $2.17 | $1.63 | $1.44 | -$0.20 | -$0.73 |
| 1946-1964 Roosevelt Dimes | $2.17 | $1.63 | $1.44 | -$0.20 | -$0.73 |
| 1892-1916 Barber Quarters | $5.42 | $4.08 | $3.59 | -$0.49 | -$1.82 |
| 1916-1930 Standing Liberty 25c | $5.42 | $4.08 | $3.59 | -$0.49 | -$1.82 |
| 1932-1964 Washington Quarters | $5.42 | $4.08 | $3.59 | -$0.49 | -$1.82 |
| 1892-1915 Barber Half Dollars | $10.83 | $8.16 | $7.19 | -$0.98 | -$3.65 |
| 1916-1947 Walking Liberty 50c | $10.83 | $8.16 | $7.19 | -$0.98 | -$3.65 |
| 1948-1963 Franklin 50c | $10.83 | $8.16 | $7.19 | -$0.98 | -$3.65 |
| 1964 Kennedy Half Dollars | $10.83 | $8.16 | $7.19 | -$0.98 | -$3.65 |
| 1965-1970 Kennedy Half Dollars | $4.43 | $3.34 | $2.94 | -$0.40 | -$1.49 |
| 1878-1921 Morgan Dollars | $23.16 | $17.46 | $15.37 | -$2.09 | -$7.80 |
| 1921-1935 Peace Dollars | $23.16 | $17.46 | $15.37 | -$2.09 | -$7.80 |
| 1971-1976 Silver Eisenhower $1s | $9.47 | $7.13 | $6.28 | -$0.85 | -$3.19 |
| 1986-2013 American Eagles | $29.95 | $22.57 | $19.87 | -$2.70 | -$10.08 |
| 2010-2013 ATB Silver Coins | $149.75 | $112.85 | $99.35 | -$13.50 | -$50.40 |
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Do you think the US Mint will reduce the price of the ATB P 5 oz quarters since silver went down 34% YTD like they do weekly with their gold numismatic coins? If so, when how by how much? Has the US Mint spoken on this issue at all in the past week or months? Also a long term investor for my 13 month old lovebug do you think the ATB Bullion or Numismatic P’s are the better price with the current prices of $110-125 compared to $179.95 (+$5 shipping/order)? Thanks in advance for your response! Also, I have tried… Read more »
It will be interesting to see if gold and silver prices will continue to fall. At current prices mining isn’t profitable. If these prices are sustained for very long, mining activity will be suspended until the prices make it profitable again. Prices will have to increase back to the pre-selloff level to make exploration possible again.
Glad you figured out how to post, Mark 🙂
Yeah, look for major pricing changes this week. They usually happen on Wednesday. Nobody’s going to be buying from the mint at the current prices given the changes in the past week or so. Silver will still be going a little lower, gold has quite a way to go, I believe. Nibble selectively.
Some gold/silver mining is done at very low cost…..much lower than current pricing. Certainly some mine production will be suspended. But there’s also a lot of inventory floating around out there as well as speculators who are overextended on their positions. Look for continued pressure in the short term on gold especially.
Paper contract price of spot has “precious” little to do with supply and demand of physical metals. Every time Western ‘powers that be’ pummel the metals prices lower, China and some other govts load up. We may yet see China’s currency pegged to gold, in an effort to supplant the US dollar as the world’s reserve currency. Equally telling is the fact that JPM is now long gold (instead of short) and has significantly reduced their short position in silver. Ready for launch. It’s been a long 13 years for me in this pm market, with some ups and some… Read more »