Gold, Silver Soar in Quarter; US Bullion Coins Split in September

Gold and silver jumped for their first quarterly gain in a year, despite logging deep monthly losses.

In United States Mint bullion coins for September, American Silver Eagle sales slowed a bit but maintained a record annual pace while American Gold Eagles improved over the prior month’s level which was the lowest in six years.

Back to precious metals and final September closings, gold for December delivery declined $12.20, or 0.9%, to $1,327 an ounce on the Comex division of the New York Mercantile Exchange. That drove prices down 5% for the month.

"Gold is disappointing traders who have expected a big rally on dollar weakness and the fear of an imminent shutdown," MarketWatch quoted Kevin Kerr, president and chief executive officer at Kerr Trading International. But, "gold remains very volatile and could suddenly spike should the shutdown take place."

"Gold may be seeing some buying interest due to safe-haven demand amid the U.S. budget and spending debacle. However, it can also be argued recent selling pressure in gold was because it has acted more like a raw commodity ahead of the U.S. budget deadlines,"
said Jim Wyckoff, a senior analyst at Kitco Inc. "It’s likely one of these scenarios will more clearly come to the forefront for gold this week."

Gold jumped 8.4% for the quarter, notching its first quarterly gain since the three-month period ended September 28, 2012 when prices rallied 10.6%. This year’s first quarterly loss totaled 4.8%. The second quarter plunged 23.3% for the deepest rout since modern gold trading began in the 1970s. Gold is now off 28.2% from its 2012 ending price, and it seems headed for a first annual loss in thirteen years.

Silver directionally tracked gold. It ended 7.7% lower in September yet still shot 11.5% higher on the quarter. As for Monday, silver prices for December delivery fell 12.3 cents, or 0.6%, to settle at $21.71 an ounce. The white metal has plummeted 28.2% for the year-to-date.

In PGM futures for Monday, September and the quarter:

• January platinum dipped $6.80, or 0.5%, to $1,412.40 an ounce. Platinum retreated 7.5% on the month but gained 5.4% in the July to September period.

• Palladium for December delivery lost $4.65, or 0.6%, to $727.15 an ounce. Palladium scored monthly and quarterly gains of 0.5% and 10.1%.

For the year-to-date, palladium stands by itself with its 3.4% advance. Platinum has fallen 8.4% from its settlement price in 2012.

The following grid offers a bird’s-eye view of monthly, quarterly, and year-to-date changes across all precious metals.

London Fix Precious Metals

London precious metals fixings were divided again Monday. When comparing the Friday PM to Monday PM London fix prices:

• Gold declined $14.50, or 1.1%, to $1,326.50 an ounce,
• Silver gained 7 cents, or 0.3%, to $21.68 an ounce,
• Platinum declined $5, or 0.4%, to $1,411 an ounce, and
• Palladium added $1, or 0.1%, to $726 an ounce

The following grid summarizes the monthly, quarterly, and year-to-date changes.

U.S. Mint Bullion Sales in September

September, like August, is usually one of the slower months of the year for United States Mint bullion coins. In ounces overall, gold and silver sales levels were fairly close to August. In monthly breakdowns across U.S. Mint bullion products:

• American Eagle silver coins added 3,013,000 in September. That would be a high monthly tally in most years, but its ranks weakest since December. Sales in the prior month reached 3,625,000. Still, the bullion coins remain on track for a new annual record with sales this year now at 36,088,000. In record-year 2011, the Silver Eagles did not top 36 million until October 20, 2011.

• September sales of American Eagle gold coins reached 13,000 ounces to improve slightly over the 11,500 ounces from August, which was the slowest month for the series since July 2007.

• American Buffalo gold coins totaled 10,000 in September, the same amount as in the prior month.

• September sales of America the Beautiful Five Ounce Silver Bullion Coins hit 22,900 coins compared to 19,000 in August. In prior months this year, totals include: 17,000 in July; 25,300 in June; 25,800 in May; 19,800 in March; and 14,340 in February; and 28,960 in January. The Mint’s supply of the 2012-dated five ounce coins sold out in early March and new ones were not offered until May.

U.S. Mint bullion sales on Monday, in September and the year-to-date follow.

Current US Silver Coin Melt Values

Silver coin melt values dropped in September to further deepen losses for the year. The grid below shows melt values of older circulating U.S. coins that were produced with 90% silver. These coins, at least those that have little to no numismatic worth because they are too common or too worn, are the ones often sought for their silver values.

Coin melt values above are based on London fix silver prices at the end of 2012, June, August and September.