Silver Prices Plummet in June and Second Quarter 2013

Silver futures rallied Friday, though steep declines earlier in the week assured losses not only on a weekly basis but also for June.

Silver Bars and Coins

Silver prices so far this year have plummeted, yet U.S. Mint bullion silver coins remain on a record annual sales pace

And from there, it just gets worse with atrocious quarterly and year-to-date figures. Despite it all, United States Mint sales of its bullion silver coins continue on record pace.

On Friday, silver prices for September delivery soared 91.7 cents, or 4.9%, to settle at $19.47 an ounce on the Comex in New York. That cut into the prior day poundings, brought silver up from a 34-month low, and set its weekly decline to 2.5%.

"An increasing dollar, rising bond yields, falling equity markets and concerns about China’s banking system was a poison cocktail not only for gold, but other commodities as well," Bloomberg News quoted Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt.

"For base metals I would say the price fall is exaggerated. We are confident the economy will improve in the second half of the year, so this should lead to higher prices."

Marking a fifth straight monthly loss, silver prices in June sank $2.77, or 12.5%. Going back through the previous months in 2013, the precious metal dived $1.94 in May, $4.14 in April, 10.9 cents in March and $2.92 in February. January was the only month this year in which silver prices gained, up $1.12.

Quarter and YTD

Tallying the losses in the April through June period, or the second quarter, silver futures ended down $8.85, or 31.3%. And for the year, declines stacked to $10.76, or 35.6%.

In rounding out the precious metals complex in New York on Friday:

  • August gold settled at $1,223.70 an ounce to fall $169.30, or 12.2%, in June
  • October platinum ended at $1,339.90 an ounce for a monthly loss of $121.90, or 8.3%, and
  • September palladium settled at $660.70 an ounce for a June decline of $92.95, or 12.3%

And in the second quarter 2013, losses totaled to 23.3% for gold, 14.9% for platinum and 14% for palladium. On the year so far, declines are 27% for gold, 13.1% for platinum and 6.1% for palladium.

Silver Prices in London

The London silver Fix was $18.86 an ounce on Friday, gaining 25 cents or 1.3%. London silver prices buckled 16.4% in June and 34.1% in the second quarter. Year-to-date, the precious metal has fallen 37%.

In other London fixings on Friday, for June and for the quarter:

  • Gold at $1,192 an ounce lost 14.5% for the month and 25.4% for the quarter,
  • Palladium at $643.00 an ounce declined 13.6% in June and 16.5% for the quarter, and
  • Platinum at $1,317.00 an ounce shed 9.7% for the month and 16.4% for the quarter

Declines so far this year accumulate to 28.4% for gold, 8% for palladium and 13.5% for platinum.

United States Mint Bullion Silver Coins

June bullion sales of U.S. Mint silver coins were very solid for a summer month, though down from the prior month.

U.S. Mint distributors ordered a total of 3.275 million American Eagle silver coins. That is the weakest monthly level this year but, on the flip side, the only month in 2012 that was higher was January. Year-to-date sales are at 25,043,500, maintaining a record annual pace. The Silver Eagle’s annual sales record at 39,868,500 coins occurred in 2011. Then, it took until July 29, 2011 for sales to surpass 25 million.

2013 America the Beautiful Five Ounce Silver Bullion Coins climbed 25,300 for June, down 500 coins from the prior month. Released this month were the five ounce silver coins depicting Perry’s Victory and International Peace Memorial in Ohio and Great Basin National Park in Nevada. The Great Basin bullion coin launched this past Monday, June 24.

Sales splits by bullion America the Beautiful silver coins include:

  • White Mountain Five Ounce Silver Coins went up 1,200 in June for a total of 27,000
  • Perry’s Victory Five Ounce Silver Coins at 14,200
  • Great Basin Five Ounce Silver Coins at 9,900

Silver Melt Values for US Coins

Melt values of silver coins continue to fall. The grid below has melt values of American coins that circulated years ago and had silver in them. These coins are ones often sought by collectors and investors. Melt values are based on the London silver fixings at the end of 2012 and on June 28.

US Silver Coins Silver Coin Melt Values (12/31/2012) Silver Coin Melt Values (6/28/2013) Net Change Year-To-Date
1942-1945 Jefferson Silver Nickels $1.68 $1.06 -$0.62
1892-1916 Barber Silver Dimes $2.17 $1.36 -$0.80
1916-1945 Mercury Silver Dimes $2.17 $1.36 -$0.80
1946-1964 Roosevelt Silver Dimes $2.17 $1.36 -$0.80
1892-1916 Barber Silver Quarters $5.42 $3.41 -$2.01
1916-1930 Standing Silver Liberty 25c $5.42 $3.41 -$2.01
1932-1964 Washington Silver Quarters $5.42 $3.41 -$2.01
1892-1915 Barber Silver Halves $10.83 $6.82 -$4.01
1916-1947 Walking Liberty 50c $10.83 $6.82 -$4.01
1948-1963 Franklin 50c $10.83 $6.82 -$4.01
1964 Kennedy Half Dollars $10.83 $6.82 -$4.01
1965-1970 Kennedy Half Dollars $4.43 $2.79 -$1.64
1878-1921 Morgan Silver Dollars $23.16 $14.59 -$8.58
1921-1935 Peace Silver Dollars $23.16 $14.59 -$8.58
1971-1976 Silver Eisenhower $1s $9.47 $5.96 -$3.51


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