Precious Metals Prices Surge for 3rd Week, All Bullion Coins Advance

by Bullion Prices Staff on October 2, 2010

U.S. Bullion prices shot higher for a third straight week, with the first day of October adding to weekly gains. Gold reached a new all-time high of $1,322. The yellow metal was boosted by a weaker dollar and continued expectations that the Federal Reserve would eventually throw more cash into the system to spark higher inflation and feed the economy.

"Gold is continuing to propel itself higher on the weakness of the dollar," Adam Klopfenstein, a senior market strategist at Lind-Waldock, a broker in Chicago, said and was cited on Bloomberg. "The Fed now wants to see inflation, and they’re going to step in and prop up the bond market. If you’re a coupon clipper in the bond market, you’re going to want to go with assets with higher returns, like gold."

Silver not only followed gold, but it outperformed it for a third week and continued to hit fresh 30-year highs. The silver-to-gold ratio has now fallen to 59.74 as compared to last week’s ratio when it took 60.66 ounces of silver to buy one ounce of gold.

In New York bullion prices, gold futures for December delivery closed to $1,317.80 an ounce for a gain of $8.20 or 0.6%. For the week, the metal rallied $19.70 or 1.5%. Last week gold rose 1.6%. It surged 4.7% in September.

December silver added 23.9 cents or 1.1% on Friday, ending at $22.060 an ounce. It advanced 66.1 cents or 3.1% for the week after gaining 2.8% last week. Silver soared 12.3% in September.

January platinum was $1,682.10 an ounce, adding $23.50 or 1.4%. For the week, it ended up $36.70 or 2.2% after last week’s increase of 1.4%. September’s pick up was 8.9%.

December palladium closed on Friday to $574.90 an ounce, rising $3.65 or 0.6%. It ended $14.40 or 2.6% higher for the week after advancing 2.7% last week. Palladium gained 13.8% in September.

In London bullion weekly prices, gold was fixed $1,316.25 an ounce for a gain of $19.25 or 1.5%

"Investors are clearly shifting their focus to precious metals of a hybrid character," Commerzbank said in a report. "These firstly have the status of a safe haven, but also show some correlation with the economic cycle. Silver, platinum and also palladium should therefore remain well supported."

London silver was fixed to $21.95 an ounce, rising 60 cents or 2.8% for the week. In PGM metals, platinum was $1,679 an ounce, adding $34 or 2.1% while palladium was $571 an ounce for a pick up of $9 or 1.6%.

Weekly U.S. Gold and Silver Coin News

The following links provides information on recent United States Mint gold and silver coin news (bullion and numismatic):

  • US Mint Sales: Gold Fractional Coins Rise
    Demand remained high for American Silver Eagle bullion. Another 835,000 were purchased as the month winded down. Tomorrow is critical, however, because September could end up being the slowest month of 2010 since total sales are under 2 million …

Weekly US Mint Bullion Coin Sales

United States Mint bullion coins moved quicker this week. All coins advanced, with the 1-ounce Gold and Silver Eagles jumping the most. They were also the only bullion coins to increase on Friday, the first day of October.

In an interesting development, the U.S. Mint on Friday raised Silver Eagle premiums. Prices rose above silver spot from $1.50 to $2.00 for each coin sold to its authorized dealers. Considering that these dealers must buy Silver Eagles in quantities of at least 25,000, the price adds another $12,500 to the smallest of purchases. The 33% increase is significantly higher than the prior 10 cent or 7.1% increase that went into effect on February 9, 2009.

The following table lists U.S. Mint published coin sales figures as of Friday, October 1, 2010:

2010 Bullion Coin Sales

American Gold Buffalo Sold Out 209,000
American Gold Eagle 1 oz 23,000 29,500 5,000 892,500
American Gold Eagle 1/2 oz 0 1,000 0 36,000
American Gold Eagle 1/4 oz 0 4,000 0 54,000
American Gold Eagle 1/10 oz 5,000 10,000 0 355,000
American Silver Eagle 830,000 985,000 325,000 25,805,500


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

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