This time around record gold and silver coin sales is investment driven, says James Anderson from GoldSilver.com.
“People see silver in the 20s and they think that is a great buy,” says Anderson who is managing director of the bullion dealer.
“Saavy investors who’ve already been in this market for a bit are coming in, dollar-cost averaging and buying in at what they feel is a really good value.”
Mints around the world are coping with a crush of new orders after prices dropped on precious metals.
The Perth Mint told Kitco News that business has doubled.
“We haven’t seen this type of demand since the 2008 financial crisis,” said the Perth Mint’s sales and marketing director Ron Currie.
The US Mint is also feeling demand pressure, which stopped selling the American Eagle coins earlier this week. US Mint sales are anticipated to be higher than sales after the financial collapse, December 2009.
Robert Rosenzweig, CEO of Cache Metals, says the Canadian inventories are just as tight as the American and Australian coins, and he hasn’t seen demand like this in three decades in the business.
Anderson says the bullion supply is not as robust as it could be, and his firm has a hard time responding to demand. He says both the US and Canadian mint coins are both backed out to May.
“As long as prices stay in those low areas, the delay on shipping and orders backing up are probably going to worsen.
“And if it falls a little more it is going to get a lot worse.”
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