Gold, Silver Edge Higher on Week; US Mint Silver Sales Weaken

by on September 10, 2016 · 6 comments

Gold bars and stok market

Precious metals futures scored modest weekly gains that ranged from less than a half penny for silver to 0.9% for palladium

Gold futures registered a third straight loss Friday but still advanced for a second week in a row. Other precious metals also posted weekly gains despite end-of-week declines.

Gold for December delivery on Friday fell $7.10, or 0.5%, to settle at $1,334.50 an ounce on the Comex division of the New York Mercantile Exchange.

Gold has seen "gains on disappointing economic data, but Fed speakers have caused the market to rethink their view on rate increases," MarketWatch quoted Robert Haworth, senior investment strategist with U.S. Bank Wealth Management. "Gold now appears to be reflecting the stronger dollar and rising odds of a Fed rate increase in 2016."

Gold futures climbed this week by 0.6% after rising last week by less than 0.1%. The yellow metal is now $274.30, or 25.9%, higher than its final settlement in 2015 at $1,060.20 an ounce. In looking ahead to next week, Kitco News offers the following forecasts via their Wall Street vs. Main Street survey:

"This week, 15 analysts and traders took part in the survey; about 46% of the experts expect prices to trek lower next week, while the remaining participants — split evenly at 27% — see higher or neutral prices.

Meanwhile, sentiment on Main Street was a little more optimistic for the yellow metal. This week, 664 Main Street participants voted on the online survey, of which 438 voters, or 66%, are bullish. At the same time, 136 participants, 20%, expect lower prices while 87, or 13%, are neutral."

Also lower for a third straight day, silver for December delivery dropped 31 cents, or 1.6%, to settle at $19.368 an ounce. Silver futures ended virtually flat this week, rising less than a half penny, after soaring 3.8% a week earlier. Silver remains the best-performing precious metal for the year to date, up 40.3%.

In PGM futures on Friday and for the week:

  • October platinum settled down $17.20, or 1.6%, to $1,067.50 an ounce, but logged a 0.5% weekly gain.

  • Palladium for December delivery lost $8.40, or 1.2%, to $679.45 an ounce, but tacked on 0.9% this week.

Both metals are higher on the year so far with gains of 19.5% for platinum and 20.9% for palladium.

London Precious Metals Prices

London precious metals prices also ended lower on Friday but higher on the week. In comparing their levels from Thursday PM to Friday PM:

  • Gold declined $12.55, or 0.9%, to $1,330.85 an ounce.
  • Silver fell 52 cents, or 2.6%, to $19.41 an ounce.
  • Platinum declined $15, or 1.4%, to $1,073 an ounce.
  • Palladium fell $16, or 2.3%, to $678 an ounce.

Their weekly increases tallied to 0.5% for gold, 3.5% for silver, 2% for platinum and 1.2% for palladium.

US Mint Bullion Coin Sales in 2016

U.S. Mint bullion coins posted lower sales than a week earlier. In week-over-week comparisons:

  • Gold coins advanced 22,000 ounces after climbing 23,000 ounces last week. This week’s splits include 18,500 ounces in American Gold Eagles compared to 20,500 ounces previously and 3,500 ounces in American Gold Buffalo compared to 2,500 ounces previously.

  • Silver coin sales advanced 177,500 ounces after rising by 552,500 ounces previously. The weekly splits include 170,000 ounces in American Silver Eagles compared to 410,000 ounces previously and 7,500 ounces in America the Beautiful Five Ounce Silver Uncirculated Coins compared to 142,500 ounces previously.

Below is a sales breakdown of U.S. Mint bullion products 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)
Friday Sales Last Week This Week Aug Sales Sept Sales 2016 Sales
$100 American Eagle 1 Oz Platinum Coins* 0 0 0 1,000 0 20,000
$50 American Eagle 1 Oz Gold Coins 2,000 17,500 14,500 50,000 19,500 505,500
$25 American Eagle 1/2 Oz Gold Coins 0 1,000 1,000 3,000 2,000 53,000
$10 American Eagle 1/4 Oz Gold Coins 2,000 0 6,000 4,000 6,000 106,000
$5 American Eagle 1/10 Oz Gold Coins 5,000 25,000 20,000 60,000 35,000 650,000
$50 American Buffalo 1 Oz Gold Coins 0 1,500 3,500 9,000 4,500 136,000
$1 American Eagle 1 Oz Silver Coins 0 410,000 170,000 1,280,000 310,000 29,210,500
2016 Shawnee 5 Oz Silver Coins* 0 0 0 0 0 105,000
2016 Cumberland Gap 5 Oz Silver Coins* 0 0 0 0 0 75,000
2016 Harpers Ferry 5 Oz Silver Coins 0 1,000 0 1,900 0 36,100
2016 Theodore Roosevelt 5 Oz Silver Coins 0 27,500 1,500 27,500 1,500 29,000


{ 6 comments… read them below or add one }

Synoptic 12 September 10, 2016 at 1:04 pm

To purchase any gold at this point in time would be considered more than risky. The point being; if one purchases a gold coin, there shall not be any secondary market to make a profit. This facet is only relevant to the current gold issues. Naturally, the numbers dictate the intrinsic value of any coin but gold is far too expensive.

Mouse September 10, 2016 at 2:01 pm

To me, Bullion is just that…Bullion. Those who are licensed to sell are contractually obligated to buy back. Gold and silver have done amazing things this year. The increase and value of gold and silver since the beginning of 2016 has been good. Numismatic coins are beyond gold value…low mintage is key. At the end of the day, it does not matter if a mint produces 1 million or 2 million Bullion coins as it is straight cash for precious metals. Any increase in Bullion value is cash in the bank, and temporary loss is just part of the game. Waiting for gold to bottom out is a loss.

RODNEY MOORE September 11, 2016 at 11:03 am

Synoptic said “Naturally, the numbers dictate the intrinsic value of ‘ANY’ coin……

(emphasis mine).

Mouse was correct when he pointed out that it doesn’t mater if they make 1 million or 2 millon gold bullion coins, that isn’t going to affect their value at all!

I don’t think it is better to buy rare coins instead of bullion. I think if the economy was to collapse that the fellow with a lot of bullion will be in much better shape than the one that has a couple of “rare” coins that will be essentially worthless – aside from the intrinsic bullion value of their weight.

Synoptic 12 September 11, 2016 at 11:28 am

@ Rodney

Collecting numismatic gems is a hobby, not seeking to make an investment nor delving upon how much one can accrue in assets. Greedy people are always looking to capture the realm of dreams in purchasing gold and silver, mainly gold to amass a profit, or to sell on a secondary market. We’re ‘not’ speaking of bullion nor do we recognize bullion as having any more value than any other coin; rather the opposite unless one is looking for a serious return. However, at the price gold stands, one would require a big shovel to scoop up a large amount to realize a profit, “if any”. This is our hobby and we have no intentions; none, on trying fill our cup with gold.

* Remember at the end of days, people shall be tossing their gold and silver in the street, remember that. Everything shall eventually be worthless, and not any can take anything with them when they leave the world. Again, we collect to pass on, not to become rich for this is not our goal in this world. This is the problem with those who collect coins, “They’re all greedy” and as a coin dealer told me (American Rarities) PCGS grader, “Coin dealers have no soul”. I’ve been in the field of numismatics for quite some time as speaking with Bowers & Merena personally and many other high profile coin connoisseurs that I shall not make mention.

RODNEY MOORE September 11, 2016 at 12:07 pm

Your first comment about the worth was incorrect without a qualifier, such as “to me the (mintage) numbers dictate the worth” or “to hobby collectors the numbers dictate the worth”. That’s a very important qualifier that you left out. so you can expect for people to comment and disagree.

I’m not sure why you’re telling me about the hobby. I mentioned value or worth between rare coins and bullion. Personally, I am a collector. I buy coins because I like and value them myself, personally. If I were to be looking to invest money to make a profit or at least to be sure of protecting assets I would be buying bullion as opposed to rare coins.
As a collector, I am not sure why you don’t see the positive side of people investing in bullion, especially gold and silver bullion. It helps our hobby. It’s also the reason why the US mint makes the proofs and special issues that they do.

Synoptic 12 September 11, 2016 at 1:36 pm

No, the comment was correct with the exception on using “Any” instead of rare or commemorative coins. Some are always seeking the speck in someone’s eye. However, the comment should have presented more clearly. Irrespective of “Any” the comment stands as factual. There has not been much activity here and I could not edit so the comment stayed.
I believe I already presented a synopsis regarding the value of bullion vs. rare coins, as well the state which each coin having value; ‘In stating that rare coins carry more of an intrinsic value ‘by far’ over bullion and bullion’s only asset is adhering to the “spot” price: “Almost forgot>”SPOT”; would not wish to leave anything ‘out’ on gold or silver, more so than rare coins: “Not to deceive any”.

You, or anyone can purchase all the bullion you wish BUT the only reason for doing so is “hopefully” to multiply one’s profit. When gold was around 4-500 an ounce, bullion was a most viable option to invest. Again, with the ‘spot’ price of gold there is very little leeway to make a ‘killing’; unlike years past.

In terms of the U.S. Mint providing proofs, medals, commemorative coins, or Anniversary sets is just an avenue to increase revenue while serving the ‘collector’ alike. That has nothing in common with bullion nor would bullion be considered to be intertwined with that facet. You can believe otherwise but that is untrue. Actually, the U.S. Mint has been losing revenue with the rarities, as well as all the proof, uncirculated sets, and anything else they sell. This is the specific reason why the U.S. Mint has upped the price on the 2016 W A.S.E with edge lettering and the Uncirculated version of the same.

* By the way, we have more than a few rare coins as you make mention in a prior comment. Just a sample is that we have the entire A.S.E edition coins in ‘multiples’, including all Anniversary sets; ‘Proof & Uncirculated’ > Maybe you like “Burnished” as Richard Chambers coined them. Liked Richard, one of the best salesmen ever. Irrespective on the above our family members were friends with Bev Rosen, owing the Rosen Collection. She was redeemed some years back. This is just a “hobby” as was given to us and we’ll pass it along. Maybe at one point a family member may decide to sell but as for me it’s just a hobby, nothing more. I enjoy playing the game, and have no intention in believing that the signpost shall direct me to the well of wealth. I do not seek any wealth for money is vanity. In my weakness for numismatics leaves me unworthy at the time to be received by Our Messiah. You may find this amusing but it is true. Many have weaknesses that entail far more devious ways, so I feel that this field of numismatics is not too bad. Still trying to overcome the world and all its enticements but I’m only human of flesh and blood. When we are changed to spirit, we can be free of such things. Hope I did not deceive you in any way.

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