Gold Jumps 8.1% in April with Record Close, Silver Prices Soar 28.3%


Fine Gold BarsPrecious metals advanced as a group on Friday, capping robust weekly and April gains. Gold futures prices closed to a new record and rallied 8.1 percent in April. Silver prices settled to a fresh 31-year high, soaring 28.3 percent during the month. Gains in metals were aided by the U.S. dollar which fell Friday to its weakest level in three years.

June gold prices jumped $25.20, or 1.6 percent, to close at $1,556.40 an ounce on the Comex in New York. Gold futures traded between $1,532.10 and $1,569.80. Gold rallied 3.5 percent this week and 9.5 percent in 2011.

"The dollar will continue to lose ground for the foreseeable future, so it only makes sense to be invested in precious metals," Matthew Zeman, a strategist at Kingsview Financial in Chicago, said and was quoted on Bloomberg.

"Gold is showing a text-book bull market behavior, a steady ascent without major spikes. It’s the continuation of the same theme, as the Fed’s posture seems to be fairly dovish still," James Dailey, portfolio manager of the TEAM Asset Strategy Fund, was quoted on Reuters.

Silver prices for July delivery surged $1.058, or 2.2 percent, to $48.599 an ounce. They ranged from $47.700 to $49.210. Silver prices have risen 5.5 percent this week and 57.1 percent in 2011.

"I’d say the precious metals, in the aftermath of the FOMC meeting and consequent Fed statement, will continue to worry about inflation in the U.S. There are questions if the U.S. central bank is behind the curve. That will likely put pressure on the dollar which will help out gold and silver," Bart Melek, vice president and director, head of commodity strategy, rates and foreign exchange research at TD Securities, said as recounted by Debbie Carlson of Kitco News.

Platinum prices for July delivery advanced $25.60, or 1.4 percent, to $1,865.50 an ounce. Platinum traded between $1,841.00 and $1,882.00. The metal gained 2.5 percent this week, 4.6 percent in April and 4.9 percent in 2011.

Palladium prices for June rallied $16.85, or 2.2 percent, to close at $792.15 an ounce. They ranged from $775.30 to $797.80. Palladium advanced 3.0 percent this week, 3.2 percent in April, but it is down 1.4 percent in 2011.

UK markets were closed Friday in celebration of the royal wedding. London precious metals fixed on Thursday rose for the week and the month.

The gold fix at $1,535.50 an ounce climbed 2.1 percent this week and 6.7 percent in April. Silver prices were fixed at $48.70 an ounce, rising 5.3 percent on the week and 28.6 percent for the month. Platinum at $1,835.00 an ounce advanced 1.3 percent this week and 3.5 percent in April. The palladium fixing came in at $777.00 an ounce, adding 1.6 percent on the week and 1.4 percent on the month.

United States Mint weekly sales in atypical fashion advanced for every bullion product, and each bullion coin outperformed its previous weekly gain. The biggest bullion news out of the Mint this week was the Monday release of the five-ounce Gettysburg and Glacier silver bullion coins, the first two 2011-dated America the Beautiful Silver Bullion Coins. The following table includes their sales.

US Mint 2011 Bullion Coin Sales
Prior Weekly Gains Weekly Gains April* YTD 2011
American Eagle Gold Coin (1 oz) 18,500 29,500 94,500 358,000
American Eagle Gold Coin (1/2 oz) 0 11,000 12,000 33,000
American Eagle Gold Coin (1/4 oz) 0 12,000 14,000 52,000
American Eagle Gold Coin (1/10 oz) 0 25,000 40,000 200,000
American Buffalo Gold Coin (1 oz) 3,500 7,000 20,500 58,500
American Eagle Silver (1 oz) 680,000 718,000 2,819,000 15,248,000
2011 ATB Silver Bullion Coins (5 oz)* 0 183,400 183,400 183,400


*April figures have not been officially finalized, although they are not likely to change. **Sales of the five-ounce coins as of Wednesday, April 27.

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The big difference of opinion about the Silver/Gold ratio is your time frame. As Fast Money regular Tim Seymour argues that the “historical” Silver/Gold ratio is 60, based on the price in the past 20 years.

World's Final Events

The price for the past 20 years has been a bubble. The natural silver to gold ratio is 16:1. It’s only a matter of time until it goes back to 16 and I argue that It will go as low as 10. Check out my blog if you want more information on why to buy silver, guys. Don’t be ignorant about this stuff.

Now is the time to invest in silver. For every day you keep your dollars in debit and savings accounts the Federal Reserve is devaluing your hard-earned cash.