June, 2021

Silver Coin Demand is Causing a Shortage

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Silver Coin Demand is Causing a Shortage

Last week, the US Mint alerted customers via email that a “global silver shortage has driven demand for many of our bullion and numismatic products to record heights”.
LikeFolio data confirms this phenomenon — Retail Investment Demand for Silver Coins is surging, +33% YoY on a 30-day moving average.

This trend has been steadily rising since early 2020, hitting a record high during the “silver squeeze” event in early 2021.

Despite the massive influx of consumers clamoring to purchase coins, the underlying price of Silver (SI=F) has not kept pace in recent months.

The 365-day moving average of Mentions shows that Demand for silver coins first began to swell during the COVID-induced sell-off in March last year — Silver futures proceed to soar higher as the COMEX faced a historic number of silver deliveries in July.

The retail supply of silver coins has only tightened since then… American Silver Eagles, the official silver coin of the US Mint, currently fetch a premium of +40% above the spot price. 

Premiums for silver bullion products are historically high across the board, and with Investor Demand for silver coins holding at a higher level, another record July delivery month could be forthcoming.

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