Gold and Silver Prices Surge, Capping Huge November Gains

by on November 30, 2010 · 0 comments

Fine Gold Bars

Gold and silver prices rallied Tuesday, adding to their November gains and capping their fourth straight month of increases.

U.S. Mint bullion coin sales also rallied as American Silver Eagle coins topped 4.2 million in November — their latest all-time monthly record.

Gold prices jumped to a two-week high and reached above $1,390 an ounce on Tuesday as heightened worries over the European debt crisis continued to support safe-haven buying. Another bullish factor for the yellow metal was news that China would allow its citizens to invest in gold overseas.

"This is a further step in the liberalization of the Chinese gold market, making it easier for domestic investors to invest in gold. The higher demand as a result should generally support gold prices," analysts at Commerzbank said in a report today.

New York precious metals closing prices follow:

  • Gold prices for February delivery rose $18.60, or 1.4 percent, to $1,386.10 an ounce. Prices ranged between $1,364.00 and $1,391.10 — the best level since November 12. Gold gained 2.1 percent in November and 26.4 percent in 2010.
  • March silver prices surged $1.019, or 3.7 percent, to close at $28.212 an ounce. It ranged from $26.920 to $28.390. Silver prices soared 14.9 percent in November and are up 67.5% this year.
  • Platinum prices for January delivery added $21.80, or 1.3 percent, to $1,666.40 an ounce. It ranged between $1,639.50 and $1,668.50. Platinum was the only precious metal to decline in November as it fell 2.4 percent. However, prices are up 13.3 percent in 2010.
  • Palladium prices for March delivery ended up $8.15, or 1.2 percent, to $703.00 an ounce. It ranged from $686.25 to $707.00. Palladium rose the second most in precious metals for November with a 9.0 percent increase. It leads the metals this year with a gain of 71.9 percent.

In PM London gold prices, the benchmark gold Fix was up $26.50 to $1,383.50 an ounce. It advanced 2.7 percent this month.

"It’s all on the fear of contagion in Europe," Lannie Cohen, the president of Capitol Commodity Services Inc. in Indianapolis, said and was quoted on Bloomberg. "That’s going to fuel gold beyond $1,600 in 2011."

London silver was fixed to $27.130 an ounce, rising 39 cents from the price on Monday. Silver rose 13.2 percent in November.

Platinum was $1,658.00 an ounce, advancing $22.00. Palladium rose $22.00 as well, with the fixing at $702.00 an ounce. For monthly gains, platinum lost 2.5 percent while palladium rose 9.7 percent.

U.S. Mint bullion coins moved slower prior to the Thanksgiving holiday break, but their pace picked up to start this week and deepen their November gains.

Silver Eagle bullion coin sales rose 225,000 on Monday. Another 100,000 were added on Tuesday. The United States Mint is yet to officially close out the month but the eagles will at least hit 4.26 million in November. All the old Silver Eagle records had already been toppled earlier this month, namely:

  • Best ever sales month
  • Best ever sales year
  • Best ever mintage for a bullion coin

The new records simply continue to climb higher for the .999 fine silver coins.

One-ounce American Gold Eagles advanced 2,500 on Monday and 8,000 on Tuesday. Their monthly tally of 107,500 makes November the third best month in 2010 for the 22 karat gold coins. The one-half ounce American Gold Eagles improved 2,000 on Tuesday to 45,000 for November.

The following are the latest U.S. Mint sales figures for its bullion coins.

U.S. Mint 2010 Gold & Silver Bullion Coin Sales
November 2010 Totals
American Eagle Gold Coin (1 oz) 107,500 1,084,500
American Eagle Gold Coin (1/2 oz) 6,000 45,000
American Eagle Gold Coin (1/4 oz) 4,000 60,000
American Eagle Gold Coin (1/10 oz) 5,000 385,000
American Buffalo Gold Coin (1 oz) Sold Out 209,000
American Eagle Silver (1 oz) 4,260,000 32,890,500


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