Gold Prices Drop, Silver Plummets and Bullion Coins Soar

by Bullion Prices Staff on November 10, 2010

U.S. bullion prices fell Wednesday. Gold declined the most in a week, snapping a string of four straight record highs. Silver tumbled the most since 2008, and fell from a 30-year high. Platinum and palladium declined as well.

In New York futures prices, December gold retreated $10.80, or 0.8%, to $1,399.30 an ounce. Its lowest intraday point was $1,383.40 and its highest level was $1,410.

"Comex gold prices ended the day session modestly lower Wednesday, on follow-through selling pressure from losses Tuesday," said Jim Wyckoff of Kitco News. "Silver closed sharply lower on news U.S. silver futures margins have been raised. A firmer U.S. dollar index Wednesday added downside pressure to the precious metals."

 On Tuesday late in the day, the Chicago Mercantile Exchange (CME) announced an increase in silver margins to $6,000 from $5,000.

Silver declined more than any other precious metal with its drop of 7.1%. December futures prices lost $2.041 to end at $26.865 an ounce.

"Key for gold and silver investors at present is when will strong bargain-hunting buying step in. Such has been the case during every recent corrective pullback in the precious metals markets," Wyckoff said. "The gold and silver markets did see prices move off their daily lows Wednesday on some investor bargain-hunting buying interest."

In other bullion prices, January platinum fell $71.70, or 4% to $1,737.90 an ounce and December palladium lost $45.90, or 6.2% to $696.75 an ounce.

The London bullion Fix price for gold was $1,390.50 an ounce, which was down $30.50, or 2.1%, from Tuesday. Silver was $27.53 an ounce for a loss of $1.02, or 3.6%. Platinum declined $18, or 1% to $1,768 an ounce and palladium was $714 an ounce for a loss of $16 or 2.2%.

Three U.S. bullion coins improved in sales Wednesday. Falling silver prices appeared to help Silver Eagles. Their numbers advanced 675,000 after a 435,000 pick-up on Tuesday — one the biggest two day increases in months. On a year-to-date basis, their sales have topped 30 million.

Bullion Gold Eagles shined as well. The one ounce sized increased 12,000 on Wednesday, 8,000 on Tuesday, and 4,000 on Monday. Achieving their own milestone, sales this year topped 1 million. The one tenth once Gold Eagle also added 5,000, entering the November sales table for the first time.

The following are the latest U.S. Mint coin sales figures:

November 2010 US Mint Bullion Coin Sales
November 2010 Wednesday Gain 2010 Totals
American Buffalo Gold Sold Out 209,000
1 oz American Gold Eagle 31,500 12,000 1,008,500
1/2 oz American Gold Eagle 1,000 0 40,000
1/4 oz American Gold Eagle 2,000 0 58,000
1/10 oz American Gold Eagle 5,000 5,000 385,000
American Silver Eagle 1,590,000 675,000 30,220,500


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

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