Rush for silver coins continues

The silver coin market is still facing an unprecedented shortage, as the production capacity of the well-known mints is not large enough to meet demand. It is mainly retail investors who buy silver coins. They have less confidence in the soundness of the money system and buy coins as a form of diversification.

Due to the fall in the silver price to the lowest level in six years, the demand for coins has increased sharply. In addition, due to the lower silver price, investors get more coins for the same money.

The investment currencies of the American U.S. Mint and the Royal Canadian Mint have been rationed since July. Distributors are only allocated a limited number of coins, as not enough coins can be minted to satisfy the appetite for investment coins. The U.S. Mint has been working shifts since the summer, allowing coins to roll off the assembly line 24 hours a day.

Alternatives

Because the two largest mints only take orders to a limited extent, investors and traders are looking for alternatives. The Perth Mint in Australia sold more than 2.5 million troy ounces of silver coins in September, almost four times as many as in August. A spokesman for the Perth Mint told the Reuters that the Perth Mint also rations the coins as of this month.

The Austrian mint – known for its silver Philhamonikers – is also seeing an increase in demand for coins. The mint has already ramped up the production of blanks, silver discs from which the coins are minted.

Record sales

The major mints are heading for a record year. The U.S. Mint sold 14.26 million coins in the third quarter of this year, the best quarter in the mint's history. The Canadian mint has never sold so much Silver Coins in one month as well as in August and September.

The high demand for coins is also driving up premiums. Mints have to pay their staff extra and suppliers can charge higher premiums. A premium of $4 to $5 is currently paid per coin, compared to an average of $2.30 per coin in June.

According to Gregor Gregersen of Silver Bullion in Singapore, delivery times will remain higher than usual until the end of this year. The Perth Mint speaks of an unprecedented crowd, but immediately adds that the shortages are the result of insufficient production capacity. Stocks of silver ETFs fell to their lowest level in three years last week.

Hollandgold has the Silver Kilo Coins Still in stock. This is a good alternative to the 1 troy ounce pure silver coins.