As Gold Dips in January, Silver gains and U.S. Bullion Coins Soar
Posted by Adam King on February 01, 2013
During the month of January, the price of gold dipped as other precious metals gained and sales of U.S. Bullion Coins surged for the month.
During a decline in prices on Thursday, gold had dipped 0.8 percent for the month after failing to breach the psychologically and technically significant $1,700 per troy ounce level earlier in the month.
Mid-morning trade on Friday saw gold prices up with U.S. gold futures for April delivery gaining $8.80, or 0.53 percent, to $1,670.60 per troy ounce. The spot price of gold gained $7.11, or 0.43 percent, to $1,670.88 per troy ounce.
Almost regardless of the current market volatility, physical demand for precious metals showed demand for American bullion coins soaring as orders at U.S. Mint during the month of January triggered multi-month and all-time records.
Following a gain of $18.90 in Wednesday trade, gold futures experienced a decline of $19.60 on Wednesday. Jim Wyckoff wrote in the PM Kitco Metals Roundup that gold prices ended the U.S. day session sharply lower and gave back all of Thursday’s solid gains. He added it’s likely some end-of-the-month position squaring, profit taking from short-term traders, and pre-jobs report positioning were responsible for the losses in the gold and silver markets Thursday.
January has been a record sales month for the new 2013-dated bullion coins. Though January sales products have not been officially closed by the U.S. Mint, figures are unlikely to change dramatically.
Despite more than one week of unavailability as the Mint suspended sales when initial inventories ran dry, the 2013 American Eagle Silver Coins reached an all-time monthly sales record of 7,498,000 ounces. The bullion coins have been made available following the suspension by the U.S. Mint on an allocation or rationing basis.
American Eagle Gold Coins for January reached sales of 150,000 ounces across all available sizes for the highest sales totals for one month since 152,000 ounces sold in July of 2010. Additionally, the 24-karat American Buffalo Gold Coin sales totals surged to 72,500 ounces in January for the highest monthly totals since 116,500 ounces sold in October 2009.