Gold Hits Record at $1,743, Silver Prices Plunge, Bullion Coins Advance

by Bullion Prices Staff on August 9, 2011

U.S. bullion prices were split as gold reached a fresh record and silver, uncharacteristically, drove sharply lower even as palladium and platinum climbed higher. December gold futures added $29.80, or 1.7%, to $1,743.00 an ounce on the Comex division of the New York Mercantile Exchange. Gold traded from a low of $1,717.70 an ounce to a record high $1,782.50 an ounce.

"Markets are now worried about another global recession. Out of Europe, French bond yields have widened on expectation of sovereign debt downgrade because of the country’s exposure to peripheral European debt," Natalie Robertson, a commodities strategist at ANZ, said according to Reuters.

"I think everyone was also looking at the 7 percent drop in the S&P 500. The market was very concerned over the global economy. Gold is now more expensive than platinum, and the last time this happened was back in December 2008. That’s an interesting dynamic."

In other New York futures bullion prices on Tuesday, September silver lost $1.50 to $37.88 an ounce, September palladium added $6.05, or 0.8%, to $734.55 an ounce, and October platinum added $32.80, or 1.9%, to $1,756.40 an ounce.

London Bullion Prices

In London Fix bullion prices, all but silver advanced as well — like in New York, it dropped $1.50. PM fixing prices included the following changes:

  • Gold added $43, or 2.5%, at $1,736 an ounce
  • Silver declined 3.8%, at $38.36 an ounce
  • Palladium added $2, or 0.3%, at $735 an ounce
  • Platinum added $9, or 0.5%, at $1,734 an ounce

U.S. Mint Bullion Coins

The U.S. Mint published sales increases for four of its bullion products. Each of the biggest 1 oz. bullion coins rose for a second consecutive day, with the bullion Silver Eagle logging most sales at 65,000. The next highest was the Gold Eagle bullion coin with an increase of 15,000. The Eagle has been on fire since Monday, and has crossed the 600,000 marker in year-to-date sales. The latest U.S. bullion coin figures are provided below in the daily, August 2011 and YTD 2011 columns below.

United States Mint 2011 Bullion Coin Sales
1 oz American Gold Buffalo 4,000 1,000 101,500
1 oz American Gold Eagle 15,000 36,000 605,000
1/2 oz American Gold Eagle 0 2,000 60,000
1/4 oz American Gold Eagle 0 2,000 66,000
1/10 oz American Gold Eagle 5,000 15,000 280,000
5 oz America the Beautiful Silver - 8,500 378,600
1 oz American Silver Eagle 65,000 1,104,000 26,375,500


Notes. Figures above are in coins, not ounces sold. The United States Mint last updated the 5 oz. America the Beautiful Silver Bullion Coin sales on Monday, August 8. All other figures have an "as of date" of Tuesday, August 9.

In related U.S. Mint news, the bureau halted numismatic gold coin sales right before noon ET on Tuesday. All of the coins will experience a price increase by Wednesday afternoon. Based on products — six Gold Eagle offerings, the proof Gold Buffalo and all First Spouse Gold Coins, increases are expected to range from a low of $10 to a high of $185. Visit the provided link for more information.

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