Gold Rises, 2011 America the Beautiful Silver Bullion Coins in April

by Bullion Prices Staff on March 9, 2011

U.S. gold prices edged higher by 0.2% Wednesday. Silver also climbed. It was the best performer in the precious metals group with an advance of 1.1%. In United States Mint news for the day, the Mint provided release details for the five-ounce 2011 America the Beautiful Silver Bullion Coins.

April gold prices inched up $2.40 to settle at $1,429.60 an ounce on the Comex division of the New York Mercantile Exchange. Gold hit an intraday low of $1,423.20 and reach its ceiling at $1,436.80.

"Comex gold futures prices ended firmer and near mid-range Wednesday. Precious metals traders were digesting and debating the reported move by the ‘bond king’ PIMCO to dump its holdings of U.S. Treasury securities," wrote Jim Wyckoff of Kitco News.

Wyckoff went on to say that "PIMCO’s move to dump U.S. debt can be viewed by gold market bulls as bullish, due to the implications of huge government deficits weakening the value of the U.S. dollar and the financial and economic standing of the U.S. in the world arena, in general. However, part of Gross’s reason for dumping U.S. securities is that he believes the Federal Reserve will become less accommodative in monetary policy in the coming months, including the specter of rising interest rates, to fight inflationary price pressures. That could be viewed as bearish for the precious metals and bullish for the U.S. dollar."

May silver prices jumped 38.9 cents to close at $36.05 an ounce. Silver reached an intraday low at $35.62 and a high at $36.44. The metal is now 16.5% higher this year, more than doubling its value from 12 months ago.

June palladium ended down $5.50, or 0.6%, to finish at $781.65 an ounce. April platinum was nearly unchanged with its dip of 60 cents and a close of $1,802 an ounce.

Bullion American Silver Eagle coins were muted Wednesday after a hefty 668,500 pick-up on Tuesday. Three of the four four bullion American Gold Eagle coins advanced, however. The United States Mint reported that the 1-oz coins rose 5,500, the 1/4-ounce coins grew by 10,000 and the 1/10-oz coins added 5,000. The gains in the fractional coins were the first for March.

In related news and as mentioned in the intro, the Mint has announced that it would issue the first 2011 America the Beautiful Silver Bullion Coin in late April. Last year’s five 2010-dated America the Beautiful Silver Bullion Coins were each limited to a mintage of 33,000, making them more of a collectible piece than a bullion investment tool. The Mint has not announced mintages for this year’s issues, only saying that they will be substantially higher.

Each of the bullion coins includes five ounces of .999 fine silver, has a diameter of 3.0 inches and shares the same design as a corresponding 2011 America the Beautiful Quarter. The first 2011 issue in April will honor Gettysburg National Military Park in Pennsylvania.

Daily, March and 2011 bullion coin sales figures follow:

2011 U.S. Mint Bullion Coin Sales
1 oz American Gold Eagle 13,500 5,500 216,500
1/2 oz American Gold Eagle 4,000 0 17,000
1/4 oz American Gold Eagle 10,000 10,000 28,000
1/10 oz American Gold Eagle 5,000 5,000 125,000
American Silver Eagle 668,500 0 10,330,500

Figures above are in coins, not ounces sold.

In London, precious metals prices were also mixed when comparing the PM fix prices on Wednesday from Tuesday. The London gold fix rose $4.75, or 0.3%, to $1,431 an ounce.

The silver fixing declined 20 cents, or 0.5%, to $36.17 an ounce.

In PGM London metal prices, palladium soared $19, or 2.4%, to $800 an ounce and platinum gained $19, or 2.4%, to $1,811 an ounce.

{ 1 comment… read it below or add one }

Intrinsic Value March 11, 2011 at 9:38 pm

If you want to hedge the depreciation of the dollar with precious commodities, I would go long gold rather than silver. Silver is at all time high against Gold. If you are long gold you would have the tailwind at your back rather than facing the headwind.

Silver Intrinsic Value Update

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