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Silver Coin Investing

High Coin Demand

Written by Brian Hicks
Posted June 7, 2013

Metals have gotten somewhat of a bad rap from investors in recent weeks. Some of the world’s top analysts have claimed that buying gold and silver at this point isn’t worth anyone’s time, while supporters of precious metals say there’s never been better positioning for those who are looking to jump on board. Recent news may support the latter case for both gold and silver, as sales of bullion have skyrocketed as of late.

silver two coinsThe U.S. Mint has been working overtime to keep up with the demand for silver and gold bullion. Keeping up with demand has caused the Mint to buy up as many coin blanks as possible and has strained anxious workers in order to stay on track.

In 2012, the Mint sold 35 billion bullion coins, according to Reuters. If predictions stay on track, sales for 2013 could reach and even surpass 45 billion.

Sales of gold in April were up the highest they’ve been since December of 2009, reaching 209,500 ounces. To provide contrast, the Mint only sold 70,000 ounces in May of this year, leading many to believe that sales of gold bullion would be set to stay on a negative path.

With the news that recently came out of the Mint, however, it’s becoming clear that silver and gold are growing more and more popular amongst buyers.

Sales and Price Correlations

At first glance, the fact that sales of silver bullion are up yet pricing is down doesn’t seem to add up. After all, most people would assume that interest in the metal would drive price up, which is often the case in a normal economic climate. With the world’s economy in somewhat of a disturbed state, however, the norms don’t exactly stand up in this particular scenario.

While currencies such as the euro have seen a fair amount of issues recently, the American dollar has actually experienced gains. It is this small amount of strengthening that the dollar has enjoyed which is keeping silver prices low, and it will be curious to find out what happens as the dollar continues to improve (or if it continues to improve).

Many believe that the low prices for precious metals at the moment are likely to change in the very near future, although it’s impossible to say how things will pan out. Regardless, silver is being bought up throughout the world at an alarming rate this month.

It’s important to note that gold is currently in a very similar situation. The price of gold increased dramatically for a period of time, but it recently experienced a slump and is now hovering around $1,400. The difference here, however, is that the price of gold seems poised to increase and may be looking towards a steady incline once again. The prices of precious metals may fall, but gold is a strong example of how they’re likely to rebound at some point.

Investing in Gold and Silver Bullion

Gold and silver bullion is primarily targeted at investors, and for good reason – it’s the best way to invest in precious metals. The U.S. Mint may be doing everything it can in order to keep up with demand, but there’s no getting around the fact that it's having a hard time. After all, the explosion in interest over precious metals and bullion came on relatively quickly and seemingly out of nowhere.

The big question amongst investors and financial analysts is whether or not now is a good time to get involved. Investing in precious metals certainly has its lucrative sides, but there are plenty of dark corners that come along with them.

Gold and silver could easily skyrocket in price once again if the conditions are right, but who’s to say whether or not this will happen, and when? Most financial gurus will agree that having a small amount of gold and silver bullion in one’s portfolio can’t hurt, but buying the farm may not be worth the risk.

Deciding upon whether or not to get to invest in precious metals isn’t easy, but those who do should pay close attention to where things lead in the coming months.

 

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