Metals Market Report Archive
Metals Market Report 05-05-2021

The Mike Fuljenz Metals Market Report

May 2021 - Week 1 Edition

Month-End Summary: Precious Metals Edged Stocks in April

During April, Gold and Silver averaged over 6% gains, while the major stock market indexes averaged under 4% gains, so metals are finally coming alive this year, after a weak first quarter.

Looking at gold, silver and stock indexes over the past two years, however, silver has been the clear winner:

Gold Has Strongest Month of the Year

Gold finished April with its strongest month of the year and continued rising in early May, with prices increasing from $1,770 to $1,790 on Monday, May 3, before correcting back to $1,780 on Tuesday, May 4. Silver shot up to $27.00 before retreating to $26.50. Gold’s rise was mostly based on lower U.S. Treasury rates and a surprising rise in global Coronavirus cases, primarily in India. Through the first four months of the year, however, stocks are ahead of precious metals, while precious metals led stocks during 2020.

U.S. Mint Sales Are Up Sharply in This “Year of Transition”

The heaviest demand for gold and silver bullion coins at the U.S. Mint last year came during March 2020, the month when the Coronavirus hit America and the lockdown began. During that month, there was more than a 20-fold gain (month-over-month) in Troy ounces of Gold American Eagles sold, and nearly a 10-fold gain in one-ounce Silver American Eagles sold. Despite that huge surge last March, the sales of bullion coins at the U.S. Mint through the first four months of 2021 was even greater this year.

There is great interest in this year’s American Eagle series as there will be a design change on the reverse coming in July, the first design change since the series debuted 35 years ago in 1986.  This will essentially cut this year’s mintage in half. There will also be a significant debut of a commemorative series of Morgan and Peace Silver Dollars to honor the centennial of the year in which the two series made their transition in 1921 – the final Morgan Dollar mint year, and the first Peace Dollar mint year. These popular series will also debut early this summer, making 2021 a Year of Transition.  Please stay in touch about these important developments with your account representative.

We continue to see steep premiums on American Eagles due, in part, to delays in deliveries and high demand. Be sure to call your representative and inquire about bullion coin options if Eagle premiums rise too high, but in key transition years like this, high premiums are to be expected as collectors and investors seek out lower mintage dates and transition years. We’ll always keep an eye out for the best prices and timeliest delivery dates.

 

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