If the continuing depression in precious metal prices has a silver lining, it is the enormous surge in demand world-wide for silver. With most mints & brokers experiencing higher than expected demand for silver coins, many are having to set weekly sales quotas after record coin sales.
According to Nicholson, Ananthalakshmi and Harvey, reporting for Reuters yesterday, this rapid surge in demand for silver is due to unprecedented interest in coins from ‘mom & pop’ buyers in the US. “Dealers and mints trace the supply squeeze to a burst of buying by mom-and-pop investors in the United States, who scrambled to scoop up coins they considered to be at bargain levels after spot silver prices in early July sank to six-year lows.”
In addition, there is a perceived shortage in the market of silver coin supply which, according to a Perth Mint spokesperson, “is in fact a (crunch in) manufacturing capacity.”
With North American mints overwhelmed by orders, investors and collectors were forced to look overseas for increasingly scarce supplies, triggering a domino effect in Europe and Asia.
Read more on the Goldcore.com blog [5]
See also our recent blog on “Premiums Rise and Delivery Delays Increase on Silver Bullion Coins [6]” for further analysis.
DAILY PRICES
Today’s Gold Prices: USD 1106.30, EUR 990.86 and GBP 730.21 per ounce.
Yesterday’s Gold Prices: USD 1145.50, EUR 1027.63 and GBP 752.18 per ounce.
(LBMA AM)
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Gold closed at $1114.30 down again by $1.70 on the day. Silver slipped to as low as $14.476 but ultimately gained $0.02 overall, closing at $14.56.
As reported previously, the Perth Mint sold a record amount of silver coins in September – more than 3.53 million ounces – according to Reuters. This is about five times higher than the mint’s August sales.
IMPORTANT NEWS
Gold struggles near two-week low after strong U.S. data – Reuters
Platinum’s Premium to Palladium at 13-Year Low on Diesel Concern – Bloomberg
Palladium hits near 3-month high on strong auto sales; gold flat – Reuters
Gold futures settle with a loss after a volatile day – MarketWatch
Commodities Bust: Metals Are Getting Massacred – Bloomberg
IMPORTANT ANALYSIS
“Silver coin demand is absolutely through the roof “- Perth Mint – Reuters
Does 1 October mark the beginning of the end for the debt bubble? – MoneyWeek
Fears of a Chinese ‘hard landing’ trigger mass exodus from emerging markets – The Telegraph
Panic Is Spreading, Part 1: Surge in Junk Bond Defaults Imminent – DollarCollapse.com
Charging into Yukon’s new gold rush – The Vancouver Sun
Read more News & Commentary [8] on Goldcore.com
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Download 7 Key Allocated Storage Must Haves [9]