The Demand for Silver is Skyrocketing
Silver is one of the most desired metals this year. Its demand, especially in the form of investment coins, has skyrocketed compared to previous years. According to some analysts, its price is much lower than what it should. Some of them dare to forecast that the metal could reach $50 an ounce in the medium term.
According to Lombardi Letter, the financial blog, the key is in the enormous demand that silver had throughout this year. To a more significant extent, it is reflected in the sales figures of bullion or investment currencies, which have exploded this year.
For example, the United States Mint has sold a total of 27.2 million ounces of silver so far this year in the form of its most representative bullion, the American Eagle. In comparison, during the full year 2019, only 14.8 million ounces were sold, that is, 83% less than 2020. Besides, the year has not even ended.
Could silver reach $50 an ounce?
Similar figures can be seen in other major world mints. The Royal Canadian Mint, which mints bullions like the Maple Leaf, has also seen its sales figures skyrocket. In the second quarter of the year, it sold 7.2 million ounces of silver. It’s 67% more than the 4.3 million sold in the same period last year.
Marie Lemay, President and CEO of the Royal Canadian Mint, noted that over the past few months, the mint has continued to respond to unprecedented global market conditions. It has translated into excellent results for their bullion business.
Sales have also been essential in the Australian Perth Mint. Including mints bullions such as the Kangaroo, the Koala or the Kookaburra. Between January 1 and October 23, 2020, the Perth Mint had sold 13.2 million ounces of silver, 69% more than in the same period of 2019.
Perth Mint’s silver sales for September reached the fourth-highest monthly figure since February 2013.
All these figures are an indication that many global investors are very aware of silver. Although its current price is not the highest throughout this year, Lombardi Letter warns investors not to lose sight of silver.
According to the media corporation, it would not be surprising if it starts a major rally towards $50 an ounce in the coming months and quarters. If you own silver coins or bars and the price reaches $50 an ounce, your earnings will have been 100%.
Therefore, investors should pay attention to companies that explore and mine for silver. They have been ignored in recent years. Moreover, if the price of silver registers this rise, the shares of these miners could skyrocket, Lombardi Letter asserted.
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