Mint Sales Figures Say Silver Prices Could Go Up a Lot
Silver prices could go much higher. It looks like a silver price of $50.00 per ounce could arrive much sooner than many have expected.
You have to look at the demand for the gray shiny metal. Saying the very least, it’s through the roof. But don’t expect to hear much about it in the mainstream financial press.
Want proof of the high demand for silver? Just look at the mints around the world; they’ve been selling silver like hot cakes.
Consider the U.S. Mint. So far in 2020, it has sold 27.2 million ounces of silver in American Eagle coins alone. In the entire year of 2019, sales of one-ounce American Eagle silver coins only amounted to 14.8 million ounces. (Source: “Bullion Sales,” U.S. Mint, last accessed November 11, 2020.)
That means, so far in 2020, based on American Eagle silver coin sales at the U.S. Mint, demand for silver has been running 83% higher. Mind you, the year isn’t even done yet. It wouldn’t be shocking to see the U.S. Mint report a much higher silver sales figure by the end of the year.
Look at other major mints too; they display a similar sentiment.
The Royal Canadian Mint has been selling a lot more silver than before. In the second quarter of 2020, the mint’s silver volume amounted to 7.2 million ounces. In the same period a year ago, its silver volume was just 4.3 million ounces. This represents a jump of more than 67% in silver demand.
Regarding the demand for precious metals and how the bullion market looks, Marie Lemay, president and CEO of the Royal Canadian Mint, said, “Over the last several months, the Mint has continued to respond to unprecedented global bullion market conditions resulting in exceptional financial results from our Bullion Products and Services business.” (Source: “Royal Canadian Mint Reports Profits and Performance for Q2 2020,” Royal Canadian Mint, August 20, 2020.)
At Australia’s Perth Mint, silver sales have also been robust. As of October 23, the Perth Mint sold 13.2 million ounces of silver in 2020. That was 69% higher year-over-year. (Source: “Perth Mint Silver Bullion Sales in September Mark Fourth Highest Monthly Total on Record,” CoinNews.net, October 23, 2020.)
Moreover, the silver sales at the Perth Mint in September were their fourth highest in one month since at least February 2013.
If You Ignore Silver, You Could Be Making a Big Mistake
Dear reader, I know silver is not “hot” these days. Investors are too interested in big technology stocks and they don’t want to look at much else.
I can’t stress this enough though: silver should not be ignored.
At the moment, I see silver prices as being very low, considering what’s happening in the overall market. In the coming months and quarters, it wouldn’t be surprising to see silver make a big run toward $50.00.
Here’s the thing: if you own silver bullion and the silver price reaches $50.00, your gains would be about 100%. As such, I think investors need to start paying attention to silver mining and exploration companies. They’ve been severely ignored over the past few years. If silver prices make a run to the upside, silver miner stocks could surge.
Silver – November 12th, 2020