Gold Logs New, Nearly 2.5-Year Low

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Precious metals posted another round of losses on Monday. Gold ended the day at a fresh, nearly two-and-a-half-year low.

Gold for December delivery gave back $22.20, or 1.3%, to settle at $1,633.40 an ounce on the Comex division of the New York Mercantile Exchange. The settlement was gold’s weakest since ending at $1,591.40 an ounce on April 1, 2020.

"Rising government bond yields and a very strong U.S. dollar index are the main bearish factors pushing the precious metals markets down," Jim Wyckoff, a senior analyst at Kitco Inc, said in a daily research note.

Gold futures traded between $1,628.80 and $1,657.20. They fell 1.7% last week.

Silver for December delivery settled down 43 cents, or 2.3%, to $18.48 an ounce. The close was silver’s lowest since it closed at $18.442 an ounce on Sept. 8. Silver futures ranged from $18.33 to $19.05. They declined 2.4% last week.

In other precious metals prices on Monday:

  • October platinum shed $8.60, or 1%, to $850.10 an ounce, trading between $844.10 and $864.80. The finish was the metal’s worst since Sept. 7.

  • Palladium for December delivery declined $21.50, or 1%, to $2,049 an ounce, ranging from $2,025 to $2,098. Like for platinum, the close was palladium’s lowest since Sept. 7.

Last week, platinum fell 4.7% and palladium lost 2%.

US Mint Bullion Sales in 2022

Published United States Mint bullion sales were unchanged on Monday. Below is a sales breakdown of U.S. Mint bullion products with columns listing the number of coins sold during varying periods.

US Mint Bullion Sales (# of coins)
Monday Last Week May June July August September 2022 Sales
$50 American Eagle 1 Oz Gold Coin 0 27,500 164,500 31,000 59,500 47,500 47,500 780,500
$25 American Eagle 1/2 Oz Gold Coin 0 0 7,000 6,000 5,000 2,000 0 73,000
$10 American Eagle 1/4 Oz Gold Coin 0 0 8,000 18,000 2,000 4,000 4,000 138,000
$5 American Eagle 1/10 Oz Gold Coin 0 10,000 50,000 135,000 20,000 20,000 15,000 560,000
$50 American Buffalo 1 Oz Gold Coin 0 27,000 56,000 21,500 39,500 22,500 38,500 360,000
$1 American Eagle 1 Oz Silver Coin 0 408,000 1,350,000 925,000 850,000 850,000 833,000 13,239,500
$100 American Eagle 1 Oz Platinum Coin 0 0 0 23,500 15,500 1,000 0 80,000

 

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Antonio

Yep, keeps dropping. Just hold on, it’ll bounce back up.

Rich

After last Friday…

deer teaser 2.jpg
Antonio

Ouch. Silver <$18.

Kaiser Wilhelm

I would tend to ask for invoking the Law of Precious Metal Pricing Absurdity here. Even on a good day silver has of late been so underpriced that there can be only one way for its value to go, and that would be UP.

Kaiser Wilhelm

At closing today Gold had given back almost $4 more than what Silver is worth. Astounding.

Jeff Legan

There was an article from Reuters Breakingviews on my news feed today titled “Gold will keep losing its irrational luster”. The main point of the article seemed to be that the Gold Miners have been mining Gold at a rate greater than population growth since 2010. Mining has increased by 26%, while population grew by 14%. The article stated there are currently 205000 tons of gold above ground.

Rich

Jeff, these articles, like today’s Reuters article “Gold will keep losing its irrational luster” and yesterday’s Wall Street Journal article “Gold Loses Status as Haven,” without exception, always appear at the bottom of a market.

Last edited 2 months ago by Rich
Kaiser Wilhelm

Good Sir Rich and Jeff Legan,

The greater the number of opinions I have come across as offered by self-appointed precious metal prognosticators which I have then compared and contrasted with the evidence of subsequent precious metal performance on the world exchanges the more I have come to realize that I might as well be flipping a coin to make precious metal buying and/or selling decisions; it’s equally valid.

Kaiser Wilhelm

While it may be true, Jeff, that gold mining’s percentage increase has exceeded the expansion of the planet’s population numbers by 12%, I have a slightly different view of what that actually means. I don’t believe there is necessarily a one to one ratio involved in the aforementioned statistics; quite the contrary, every 1% increase in the world’s population can easily work out to a multi-point increase in the need for and/or use of gold. The reason for this is that it is specifically the number of people at the top of the human pyramid that matters the most when… Read more »

Rich

Sir Kaiser, the points you make are on the mark with respect to “the correlation between the rate of global gold mining production and the rate of global population growth” versus “the correlation between the rate of global gold mining production and the rate of global wealth (money) growth.” The global balance sheet and net worth more than tripled between 2000 and 2020; Assets grew from $440 trillion in 2000 to $1,540 trillion in 2020, while net worth grew from $160 trillion to $510 trillion; The world’s wealth or net worth as measured by the value of real assets has… Read more »

Last edited 2 months ago by Rich
Kaiser Wilhelm

Many thanks and much appreciation, Good Sir Rich, for putting in all the actual, relevant figures to explicitly describe and clearly diagram the details of my original far more barebones presentation. I trust the addition of your hard and fast numbers will go a good long way toward fully clarifying the entire thrust, which is to say the complete actual meaning, of the possibly somewhat complicated explanation I was attempting to present.

c_q

so much for that inflation hedge…

Kaiser Wilhelm

Never say never, c_q; where there is life there is time and where there is time there is hope.