Silver Surges for Second Week, Topping $18/oz

Silver prices surged for a second week and above $18 an ounce in New York on Monday while the London markets were closed for an extended Easter weekend.

Prices retreated below the mark on Tuesday and then recovered again on Wednesday to rise on industrial demand expectations and in spite of a stronger U.S. dollar. The metal then cooled somewhat before marching forward on Friday to finish above $18 an ounce in both New York and London, marking respective weekly gains of 2.6% and 3.7%.

New York silver futures for May delivery closed to $18.351 an ounce, rising 46 cents after a 98 cent climb during the prior week. It has rallied 8.5% percent in the last two weeks. On Friday, silver briefly touched $18.445, which was the highest price since Jan. 20.

The London silver fix was $18.34 an ounce, rising 36 cents alone on Friday. For the week, silver had gained 65 cents. The metal
has jumped 8.8% during the last two weeks.

"Silver just took out its all time high in Euro terms. The same thing holds for the metal as holds for gold, a market making all time highs when priced in other currencies besides the Dollar, is very difficult to push down for any extended period of time simply because the successive highs makes for bullish investor psychology," wrote Dan Norcini via Jim Sinclair’s MineSet. "Silver is functioning as a monetary metal right now because it is outperforming copper so its strength is not merely a reflection of improving industrial demand."

London precious metal weekly prices follow:

London Fix Precious Metal Prices
	Gold		Silver	Platinum		Palladium
	AM	PM		AM	PM	AM	PM
4/1/2010	1116.00	1123.50	17.69	1659.00	1660.00	489.00	491.00
4/9/2010	1156.00	1152.50	18.34	1722.00	1718.00	511.00	511.00

 

Weekly Bullion Prices
	Up	Down	% Change	Gain/Loss
Silver	X		3.7%	$0.65
Gold	X		2.6%	$29.00
Platinum	X		3.5%	$58.00
Palladium	X		4.1%	$20.00

 

In related silver coin news, interesting or quick-read articles from the week include:

• 2010 America the Beautiful Silver Coins Designs Revealed
  The United States Mint in late March unveiled the final designs to be featured on the 2010 America the Beautiful Silver Bullion Coins, the new series the U.S. Mint has entitled the America the Beautiful Silver Bullion Coin™ Program.

  The 5.0 ounce, .999 fine silver coins in the program bear the same reverse designs as the coins they are modeled after, the America the Beautiful Quarters. Both circulating quarters and silver bullion coins honor National Parks and other National Sites in each state, D.C. and U.S. Territories.

• US Mint Sales: Boy Scouts Silver Dollar Coins Top 266,000
  Silver coins were not shining as bright last week as the week before, according to the latest United States Mint sales report.

  Demand dropped across all U.S. Mint silver numismatic products, but the softened sales appear to be more a reflection of collectors who have already made their new coin purchases than of anything else.

  2010 Boy Scouts of America Centennial Silver Dollars are still hot, and it is typical for weekly sales to decline following the burst of buying action surrounding their March 23 launch. Sales have reached 266,517 thanks to a weekly increase of 51,844. It looks like BSA coins may be available for only a few weeks longer given their 350,000 mintage cap.