Gold, Silver Mixed; US Mint Bullion Coins Advance

by CoinNews.net on October 24, 2016 · 6 comments

Gold Eagle and Silver Eagle bullion coins

Precious metals were mixed on Monday. U.S. Mint bullion sales posted wide coin gains.

Most precious metals scored gains in their start to the new trading week. Gold was an exception, dipping to close at an almost one-week low.

Gold for December delivery slipped $4, or 0.3%, to settle at $1,263.70 an ounce on the Comex division of the New York Mercantile Exchange. The settlement is the lowest since Oct. 18.

"The key ‘outside markets’ turned into in a bearish posture for the precious metals markets as the trading session progressed," Jim Wyckoff, a senior analyst at Kitco Metals Inc., said in a report. "The U.S. dollar index moved higher and hit a seven-month high. Meantime, Nymex crude oil prices were lower."

Gold futures ranged from a low of $1,260.10 to a high of $1,272.80. They advanced last week by 1%, their second straight weekly gain.

Closing higher for the first time in three sessions, silver for December added 11.1 cents, or 0.6%, to $17.604 an ounce. Silver futures traded between $17.46 and $17.89. They edged up 0.3% last week.

In other precious metals futures:

  • January platinum rose $6.80, or 0.7%, to $939.10 an ounce, ranging from $932.80 to $950.40.

  • Palladium for December delivery tacked on $10, or 1.6%, to $630.75 an ounce, trading between $616.20 and $634.25.

The two metals last week registered losses of 0.8% and 4.3%.

London Precious Metals Prices

In comparing earlier fixed London bullion prices from Friday PM to Monday PM:

  • Gold declined $5.60, or 0.4%, to $1,266.05 an ounce.
  • Silver lost 9 cents, or 0.5%, to $17.51 an ounce.

LBMA platinum and palladium prices are available on the LBMA’s website with a delay of midnight.

Last week, London gold and silver prices rose by 1.1% and 0.2% while platinum and palladium fell by 0.6% and 3.6%.

US Mint Bullion Coin Sales in 2016

U.S. Mint bullion products logged wide gains, adding to last week’s stronger increases. Advances on the day included:

  • 14,000 ounces in American Gold Eagles;
  • 1,000 ounces in American Gold Buffalos; and
  • 175,000 ounces in American Silver Eagles.

Below is a sales breakdown of U.S. Mint bullion coins with columns listing the number of bullion coins sold during varying periods Products with an asterisk (*) are no longer available.

US Mint Bullion Sales (# of coins)
Monday Sales Last Week Sept Sales Oct Sales 2016 Sales
$100 American Eagle 1 Oz Platinum Coins* 20,000
$50 American Eagle 1 Oz Gold Coins 11,500 19,000 79,000 88,000 653,000
$25 American Eagle 1/2 Oz Gold Coins 1,000 2,000 5,000 7,000 63,000
$10 American Eagle 1/4 Oz Gold Coins 4,000 4,000 16,000 16,000 132,000
$5 American Eagle 1/10 Oz Gold Coins 10,000 10,000 85,000 60,000 760,000
$50 American Buffalo 1 Oz Gold Coins 1,000 10,000 17,500 23,000 172,000
$1 American Eagle 1 Oz Silver Coins 175,000 1,325,000 1,675,000 3,600,000 34,175,500
2016 Shawnee 5 Oz Silver Coins* 105,000
2016 Cumberland Gap 5 Oz Silver Coins* 75,000
2016 Harpers Ferry 5 Oz Silver Coins 0 200 200 200 36,500
2016 Theodore Roosevelt 5 Oz Silver Coins 0 800 2,000 2,600 32,100

 

{ 6 comments… read them below or add one }

Seth Riesling October 24, 2016 at 5:54 pm

Why is there such low interest in the two most recent 5-ounce ATB pucks compared to the first two issued this year? Sliver has dropped from over $20 down to below $18 & yet sales have been stagnant in some weeks. The TR puck has only gone up 4,600 coins since its first day sales of 27,500 coins in August for a low total now of 32,100 coins. Any guesses why this is the case?
Thanks.

-NumisDudeTX

Mouse October 24, 2016 at 6:34 pm

Hi Seth,

5 Oz silver bullion coins are a tough sell on the open market especially if the premium is higher than 5 single ounce silver bullion coins. The 2 major Canadian bullion dealers I purchase from do not sell 5 Oz bullion silver coins. Not good for business. The market is way to soft. Its all about the profit when it comes to bullion. I don’t know how many American dealers purchased or sell the products but for the ones that do…not good business.

Cheers,

Mouse

Seth Riesling October 24, 2016 at 7:04 pm

Mouse –

Thanks! That makes sense. Some dealers here in the US seem to want about US $125 for these 5-oz bullion version pucks which is a lot above spot for sure.

-NumisDudeTX

Mammoth October 24, 2016 at 8:11 pm

Seth – PM’s are one of the things that see demand drop with price. This is called a ‘Giffin good.’ In economics and consumer theory, a Giffen good is a product that people consume more of as the price rises and vice versa—violating the law of demand.

If something suddenly happens on the world stage and PM’s spike, so will demand.

Seth Riesling October 24, 2016 at 10:29 pm

Mammoth –

Thanks! I have noticed that inverse correlation over the years since 1980 top price of silver at $50.35. Almost nobody was buying silver when it was about $5 on ounce for like over a year in the 1990s. Then fast forward to 2010 at $48.88 at one point people were buying silver bullion coins, especially the new 5-ounce ATB pucks like crazy! It is a psychological anomaly for sure.

-NumisDudeTX

Mammoth October 25, 2016 at 9:24 pm

With PM prices rising this week – let’s see if bullion sales increase as well.

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