BREAKING NEWS: The United States Mint has officially raised their wholesale pricing above spot on American Silver Eagles to all authorized dealers from $1.50 to $2.00, an increase of a whopping 33%. This news comes on the heels of a significant silver spot price rally over the last month to a new thirty year record over $22 per ounce. The impact of this news is significant and has already affected dealer pricing across the country within hours, as prices on Silver American Eagles have jumped over $0.50/oz industry wide.
The year 2010 will go down as a record year for Silver Eagle sales, as the United States Mint has already sold more than 25 million coins year-to-date. See chart below:
This development comes only two days after the US Mint announced it had sold out of 2010 gold American Buffaloes and would cease production for the remainder of the year.
The impact of this rise in premiums will undoubtedly affect the prices of generic silver rounds as well. We will monitor these developments closely, as the rush into silver impacts pricing and availability.
Gold hits new high for sixth successive session
LONDON (Reuters) –
Gold hit record highs for a sixth successive session on Friday as the dollar fell to a six-month low against the euro, with expectations for further U.S. monetary easing driving strong demand for the precious metal.
Spot gold touched a peak of $1,317.10 and was bid at $1,315.65 an ounce at 1013 GMT (6:13 a.m. EDT), against $1,305.25 late in New York on Thursday. U.S. gold futures for December delivery rose $8.20 to $1,317.80.
Gold looks resilient after ending September with its eighth consecutive quarterly gain, analysts say, having risen 6 percent in the third quarter.
“Despite the rejuvenating economic situation in the United States, the general view that the Fed would be forced to pump in economic stimulus in the form of QE 2 after the elections on November 10 is keeping bullish momentum intact,” said Pradeep Unni, senior analyst at Richcomm Global Services.
“The economic situation is so fragile that any further deterioration in the data print may propel gold further north.”
The euro extended gains on Friday to hit a six-month high against the dollar after upbeat Chinese data encouraged risk taking in higher-yielding currencies and as Asian central banks were seen recycling dollars into the euro.
Dollar weakness tends to benefit gold, as it boosts gold’s appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies. With the U.S. currency seen extending losses to the end of the year, gold is expected to benefit.
“The U.S. dollar had its worst month since May 2009 against a basket of currencies and its worst quarter since April 2002, as it continued to come under pressure over concerns that the Federal Reserve is poised to fire the starting gun on further asset purchases,” said CMC Markets analyst Michael Hewson.
“Early indications suggest that these US dollar declines look set to continue for now as we head into a new month, and the final quarter of 2010, as the U.S. dollar index heads back toward levels last seen in January this year.”
On the physical side of the market, a Singapore-based trader reported firm gold demand from Thailand and India, where buyers appear to be becoming acclimatized to record-high prices.Holdings of the world’s largest gold-backed exchange-traded fund, New York’s SPDR Gold Trust, dipped however by just under 1 tonne to 1,304.776 tonnes. <GOL/SPDR>From a technical perspective, gold looks poised for further strong gains, according to Reuters’ Singapore-based market analyst Wang Tao. He expects prices to rise to $1,539 per ounce over the next three months.
Silver was bid at $22.01 an ounce against $21.70. The metal has outperformed gold this year, rising 30 percent against gold’s 20 percent climb.However, UBS analyst Edel Tully said in a note that silver may be more vulnerable to a near-term correction than gold.”Much of silver’s move having been technically driven, the gold/silver ratio this week pulling back below 60 for the first time since October last year may convince many buyers to take profit,” she said.”A pullback would be particularly unsurprising because silver is notoriously volatile, its price regressions typically being a lot more violent than gold’s.””On the other hand, mounting QE expectations ahead of the November 3 FOMC meeting should support gold, which will also help silver,” she added. “And silver has also seen decent industrial demand as well as investor buying.”Gold’s strength lifted platinum to a 4-1/2 peak at $1,679.50. It was later at $1,677.50 an ounce against $1,651.15, while palladium was at $575 against $563.93.
(Editing by Sue Thomas)
Silver surges to record in futures trade on global cues
New Delhi, Sep 29 (PTI) Silver prices surged to record high in futures trade today by gaining Rs 367 to Rs 33,448 per kg in futures trade today on heavy buying by speculators and traders sparked by a firming global trend.
At the Multi Commodity Exchange counter, silver for July month surged by Rs 367, or 1.11 per cent to Rs 33,448 per kg with a business volume of one lot.
Similarly, the metal for delivery in December rose by Rs 125, or 0.38 per cent to Rs 33,156 per kg in 2 lots.
Marketmen said heavy buying by speculators and traders in tandem with a firming global trend mainly led to an upsurge in silver prices at futures trade.
They said the increased offtake by industrial units and coins manufacturers for the coming festivals and marriage season mainly kept the market in bullish mood.
Meanwhile, silver traded higher by 0.51 per cent to USD 21.85 an ounce in Asian region.