Silver Prices Fall in October, US Bullion Silver Coins Solid

U.S. silver prices jumped on the final day in October but came well short of the needed gains to lift the month into the black.

On Wednesday and after a two-day hiatus from floor trading as a result of Superstorm Sandy, silver prices for December delivery surged 50 cents, or 1.6%, to close at $32.32 an ounce on the Comex in New York. The settlement price was the highest since October 17.

Silver prices traded down for the month of October by $2.26, or 6.5%, marking the first monthly loss since June. In breaking the months down, silver gains during the previous three months were 10.0% for September, 12.6% for August and 1.1% for July. Before then, the precious metal had declined during the four prior months by 0.5% in June, 10.5% in May, 4.5% in April and 6.2% in March. Silver prices advanced 4.2% in February and rallied 19.2% in January.

For 2012 so far and despite recent losses, silver prices have soared $4.40, or 15.8%. That is well above all other precious metals.

Jim Wyckoff writes in the P.M. Kitco Metals Roundup about the near-term technical aspects for silver:

"The silver bulls have the near-term technical advantage. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $32.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $31.00. First resistance is seen at Wednesday’s high of $32.435 and then at last week’s high of $32.50. Next support is seen at $32.00 and then at Wednesday’s low of $31.755. Wyckoff’s Market Rating: 6.0."

In other New York precious metals prices on Wednesday and for the month:

• December gold prices settled at $1,719.10 an ounce for a loss of 3.1% in October,
• January platinum prices ended at $1,577.00 an ounce, which was down 5.5% for the month, and
• December palladium prices closed at $609.80 an ounce for a 4.8% decline in October

Also on Wednesday, the London silver fixing was $32.28 an ounce, up 30 cents, or 0.9%, on the day but down $2.37, or 6.8%, for the month. This year the white metal in London has rallied $4.10, or 14.5%.

In other London precious metals fixings for the day and October, gold at $1,719.00 an ounce fell 6.8% for the month, palladium at $606.00 an ounce dropped 5.6% in October and platinum at $1,570.00 an ounce lost 5.9% for the month.

Bullion American Eagle Silver Coins and ATB 5 Oz. Ounce Silver Coins

As is typical for the final day in the month, sales figures for United States Mint bullion silver coins have not been finalized. Currently, U.S. Mint bullion sales in October include:

• 3,153,000 of the bullion American Eagle silver coins, which is lower than the 3,255,000 from September but higher than each of the monthly totals from February through August. Year-to-date sales for the Eagle’s are at 28,948,000.

• 22,100 of the bullion America the Beautiful Five Ounce Silver Coins, which is the highest monthly total this year. The newest bullion coin released, on October 23, honors Denali National Park in Alaska. It easily accounts for the biggest portion of the five ounce silver coin sales in October with its 12,500. The other advances in the five ounce bullion silver coins were 200 for El Yunque; 1,000 for Chaco Culture; 3,800 for Acadia and 4,600 for Hawai’i Volcanoes.

A more detailed article will follow after the U.S. Mint officially finalizes October sales stats for its range of gold and silver coins.