Gold and Silver Weekly Prices Soar to Highs, Bullion Coins Rally

by Bullion Prices Staff on November 6, 2010

Gold and silver weekly prices soared this week, with the yellow metal rallying 3% and the white metal surging 8.9%. Bullion prices did register two "down days" this week — modest retreats on Monday and a large drops on Wednesday. However, the declines paled to the enormous precious metals price gains registered after the Federal Reserve introduced its new monetary stimulus plan.

"Bullion investors are ignoring what the dollar is doing right now and looking more at what the Fed is doing, knowing it’s inflationary for the market regardless of what it does," Jeff Pritchard, a broker at Altavest Trading, was quoted on Reuters. "At some point, there is no way that inflation won’t be an issue. Right now, if you want a return on your money, the commodity and stock markets seem to be the place," he said.

In New York bullion prices, gold futures for December delivery added $14.60, or 1.1%, to settle Friday at a new record of $1,397.70 an ounce. The metal gained $40.10 for the week after rising $32.50, or 2.5%, last week. This year it has rallied 28%, keeping it on pace to register 10 straight yearly gains.

Silver prices for December delivery rose 70.5 cents, or 2.7%, to $26.748 an ounce — its best closing price since March 2008. Its highest intraday price on Friday was 8.5 cents away from $27 an ounce. Silver gained $2.184 this week following an increase of $1.446, or 6.3%, last week. It has soared 59% this year.

Platinum prices for January delivery rose $13.00, or 0.7%, to $1,768.90 an ounce. It gained $61.80, or 3.6%, for the week following its1.9% gain last week. Platinum prices are 20% higher this year.

Finally, Palladium prices for December delivery advanced $10.65, or 1.6%, to settle Friday at $685.40 an ounce. That made its weekly gain $40.30, or 6.2%. Palladium rose 9.1% last week and is up 68% for the year.

In London bullion prices, gold was fixed to $1,395 an ounce, marking a weekly pick up of $48.25, or 3.6%.

The Federal Reserve’s "QE devaluates the currency, so gold…and almost all commodities will be beneficiaries as people start to switch from financial assets to commodities, something they feel more tangible as the money printing continues," Standard & Poor’s Equities and Metals analyst Leo Larkin, said and was cited in another Reuters‘ article entitled Gold set to extend post-Fed gains; peak in 2011: Reuter’s poll.

The silver fixing price was $26.14 an ounce. That translated into a weekly gain of $2.18, or 9.1% — the best increase out of all London precious metals.

In London PGM fixings and weekly price gains, platinum was $1,764 — higher by $64 or 3.8%, and palladium was $687 for an increase of $47 or 7.3%.

Weekly U.S. Gold and Silver Coin News

The following links provides information on recent U.S. gold and silver bullion coin news:

US Mint 2010 Bullion Coin Sales

As the news article links and summaries above indicate, October turned out to be a great month for U.S. Mint 2010 bullion coin sales.

Demand for bullion Silver Eagles picked up for the first time in five months, and it was the best ever October for the series. November’s early additions combined with October’s 3.15 million gain lifted sales and they are now the best ever for any year, having passed the 28,766,500 sold in all of last year. With record silver prices in play, it would seem likely November could be another solid month. Typically, the last two months of the year are among the best for bullion coins.

Turning to the yellow metal, bullion Gold Eagles in October marked their best performance in three months. U.S. Mint buyers ordered 94,000 ounces of the coins, passing the 88,000 ounces sold in September and the 41,500 ounces from August. They were not as strong as the last two years, however, as October fell behind the same month sales in 2009 and in 2008.

On a weekly performance, Silver Eagle coins easily outpaced their prior 7-day gains while Gold Eagle coins fell slightly behind. The following table lists Mint published coin sales figures as of Friday, November 5, 2010:

2010 US Mint American Eagle Bullion Coin Sales
  Prior Weekly Gain Current Weekly Gain November 2010 2010 Totals
American Gold Buffalo Sold Out 209,000
American Gold Eagle 1 oz 12,000 10,000 7,500 984,500
American Gold Eagle 1/2 oz 0 0 0 39,000
American Gold Eagle 1/4 oz 2,000 2,000 0 56,000
American Gold Eagle 1/10 oz 0 0 0 380,000
American Silver Eagle 1 oz 250,000 805,000 255,000 28,885,500


Figures above are in coins, not ounces of gold sold.

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