Metals Market Report Archive

The Mike Fuljenz Metals Market Report

October 2021 - Week 1 Edition

Gold Trending Upward

Gold has been ratcheting its way higher over the past few days. First, last Thursday, September 30, gold shot up from $1,720 to $1,760 per ounce in four hours of morning trading before consolidating its gains over the weekend, slipping to $1,750. On Monday morning, gold shot up $20 in a single hour, from $1,750 to $1,770 as the stock market opened down sharply. That is a $50 gain (almost 3%) in two trading days. Gold was down in September as the dollar rose strongly, but the dollar slipped in early October over speculation the Federal Reserve may be close to tapering quantitative easing (QE).

September Market Summary Plus 9-Month 2021 Year-to-Date Performance Totals

September was a bad month for most markets. All three major stock market indexes fell, averaging a 4.8% drop, while gold, silver and platinum averaged a 6.1% decline, and palladium suffered a 24% crash. The dollar’s strength provides part of the reason for gold’s decline, as the U.S. Dollar Index rose 1.73%.

Gold is the Second Most Active Liquid Market in the World

It is important to realize there is still great interest in gold even though the price is not rising, yet. Gold is now the second most actively traded liquid market in the world, according to the World Gold Council.

For the 12-months ending September 28, 2021, the average daily trading volume in gold was $183 billion, second only to the S&P 500. Gold beat every other stock market or single currency trade as well as any single government bond market. Here are the 10 most active liquid markets, according to the WGC:

Mint Sales Continue Strong – As a Strong Mint Director Unexpectedly Resigns

In September 2021, the U.S. Mint sold 75,000 ounces of American Gold Eagle coins, up from the sale of 22,000 ounces of American Gold Eagle coins in September 2020. Sales were up even more from the 5,500 ounces of Gold Eagles sold in September of 2019.

American Silver Eagle coin sales in September 2021 were down a bit from last year, as September 2021 sales totaled 2,735,000 1-ounce coins – down from the 2,958,000 ounces sold last September, when silver sold for near $30. The 2020 total was up from the sale of only 1,021,000 coins in September 2019. American Silver Eagle sales for the first nine months of 2021 are up 3,788,750 coins from the same time period of 2020.

I was shocked to see the announcement last Friday, October 1, that the Director of the Mint, David Ryder, has suddenly resigned without any previous warning or announcement. Mr. Ryder has been a very positive force for clear communication and professional management at the Mint. He has special expertise in detecting and preventing the circulation of counterfeit money, which is very valuable at this time of rising Chinese aggression in counterfeiting. He also helped expedite the modern revival of the Morgan and Peace dollars and redesign of the American Eagle for the first time since its inception in 1986, all in 2021.

Annually, he would hold day-long forums for numismatic dealers and collectors, which allowed them to communicate with him and U.S. Mint staff on important topics. He was also very accessible at major coin shows and events prior to the pandemic.

I have high hopes that his replacement, Alison Doone, will keep moving forward with Mr. Ryder’s policies and keep communication lines open with the coin buying and dealer network. She has served as the Chief Administrative Officer at the Mint since March and will serve as Acting Director. Best of fortune to David Ryder in his future pursuits and to Ms. Doone in her new role at the Mint.

 

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