Precious metals spiraled south for a second session Monday with gold and silver sinking to multi-year lows.
Gold for June delivery dived $140.30, or 9.3%, to end at $1,361.10 an ounce on the Comex in New York. The settlement price was the lowest since February 2011 and the one-day dollar drop the biggest since January 1980. Prices traded as low as $1,355.30 an ounce.
"We have seen massive liquidation from all quarters — ETFs, funds, CTAs, specs and even Chinese and Indian physical buyers. This is a market that has only got one thing on its mind … get me out," Reuters quoted David Govett, head of precious metals at Marex Spectron in London.
Since Thursday, gold prices have plunged $203.80, or 13.0%. They are down $314.70, or 22.7%, for the year.
"There are a lot of people throwing up their hands. Throwing positions overboard. Panic is everywhere," Dennis Gartman, editor of The Gartman Letter, said on CNBC’s Squawk Box in an interview on Monday. "I’ve never seen anything like this. I mean it."
Silver was hit hardest. Silver for May delivery sank $2.97, or 11.3%, to $23.361 an ounce. The closing price was the lowest since October 2010. The precious metal ranged from an intraday low of $22.92 to a high of $26.045.
"Institutional investors will continue to unload their positions until a bottom is achieved," MarketWatch quoted David Morgan, publisher of investment newsletter the Morgan Report. But the fundamentals for both gold and silver are "still strong" against a backdrop of financial woes in Cyprus, geopolitical tensions surrounding North Korea, "and the silver retail market is showing high premiums with shipping delays."
Silver prices in the last two sessions have fallen $4.34, or 15.7% and they are off $6.87, or 22.7%, in 2013.
In other New York bullion prices Monday:
-
July platinum dropped $71.10, or 4.8%, to $1,424.80 an ounce, trading between $1,411.40 and $1,488.00.
- Palladium for June delivery declined $42.10, or 5.9%, to $667 an ounce, ranging from $658.50 to $709.85.
Losses in precious metals last week accumulated to 4.7% for gold, 3.3% for silver, 2.6% for platinum and 2.0% for palladium.
London Fix
Precious metals in London plummeted as well. When comparing the Friday PM to Monday PM London Fix prices:
- Gold declined $140.50, or 9.2%, to $1,395.00 an ounce,
- Silver dived $3.86, or 14.1%, to $23.54 an ounce,
- Platinum fell $66.00, or 4.4%, to $1,448.00 an ounce, and
- Palladium lost $39.50, or 5.5%, to $676.00 an ounce
Last week in London fixings, silver advanced 1.6% while gold fell 2.1%, platinum declined 1.1% and palladium shed 0.6%.
US Bullion Coin Sales in April
Sales of U.S. Mint bullion coins were unchanged Monday after robust gains last week.
In related coin news, the U.S. Mint on Monday had the following silver products taken off sales for re-pricing:
- 2013 American Eagle Silver Proof Coin (GA6)
- 2012 U.S. Mint Annual Uncirculated Dollar Coin Set (XA3)
- 2012 ATB Silver 5 Ounce Uncirculated — Chaco Culture (NQ1)
U.S. Mint bullion sales for April and the year-to-date follow.
| American Eagle and Buffalo Bullion Coin Sales | |||||
|---|---|---|---|---|---|
| Monday Sales | Last Week | Week-To-Date Sales | April Sales | YTD Sales | |
| $50 American Eagle Gold Bullion Coins | 0 | 25,500 | 0 | 44,500 | 291,000 |
| $25 American Eagle Gold Bullion Coins | 0 | 3,000 | 0 | 4,000 | 30,000 |
| $10 American Eagle Gold Bullion Coins | 0 | 2,000 | 0 | 4,000 | 50,000 |
| $5 American Eagle Gold Bullion Coins | 0 | 10,000 | 0 | 30,000 | 245,000 |
| $50 American Buffalo Gold Bullion Coins | 0 | 5,000 | 0 | 7,000 | 102,000 |
| American Eagle Bullion Silver Coins | 0 | 900,000 | 0 | 1,712,000 | 15,935,000 |
All bullion figures above are in the number of coins sold. Calculate total ounces by using the bullion coin’s weight.
Get ready to buy.
I went looking to buy but everything is sold out. Go fugure!
Is the Mint going to drop the silver coin price? This is the lowest in over two years.
You can buy a roll of 20 Silver Eagles in gem BU condition for $559.88 & you can buy a sealed green monster box of 1oz Silver Eagles 500 coin total for $13,555.75 & sit on them.
Capitulation, to be followed by a slingshot northward for silver and a new high for gold (by next year at this time, imo) The irony of all this paper contract selling is that it tightens the physical market tremendously. When ag, au contract buyers try to take delivery, instead of the metal (gold or silver) they will be handed a check. Because there is no way there is enough physical metal available to fulfill a fraction of the contracts. there is a physical shortage. Otherwise, why is it going to take Germany seven years to get only a fraction of… Read more »
Asset manager, John Hathaway reports that the gold paper contracts sold Friday and Monday (1 million contracts) exceed ANNUAL gold production by 12%. Selling was fueled by naked shorts.
Wholesalers are reporting delays in delivering some silver products, such as Canadian maples, of a few weeks. Premiums on sales of metal products increased, and junk silver is nowhere to be found according to market veteran Bill Haynes.
Physical silver bullion American Eagles are out there. Not going to last long if this keeps up.
Kevin – there been articles on Businessinsider that listed the metric tons of gold and which countries had the top 10. The article implied the US had like 8,000+ tonnes of gold – far more gold than any other country. Germany was a distant second with 3,400 tonnes. The US has had over 20,000 in the past and dropped below 10k in 1968. In another article in January – quashing some conspiracy theories – Germany has visited the vaults where the gold is stored and has seen the gold (all 374 tons), as of 2011. Germany apparently has no issue… Read more »
I should note – there are 374 tons of German gold in US vaults and 300 tons in Paris vaults…how that got to 600+ tons to move.