COVID-19 Drives Precious Metal Demands: U.S. Mint Silver Eagles Sold Out
The recent outbreak of the deadly coronavirus has daunted economies across the globe, including the United States, Europe, and Asia. Industries are shaking, businesses are tumbling, and stock markets are breaking down.
However, amidst all the chaos caused by the pandemic, the precious metals market seems to be thriving. Investors are shifting their investments from stocks, shares, currencies, and other volatile assets to purchasing physical silver and gold.
In this blog, we’ll have a detailed discussion on how the COVID-19 pandemic is moving the demand and value of silver and why it’s an excellent opportunity to invest in silver.
American Silver Eagle Bullion Sold Out as the Demand Surged in March
During the first week of March, silver dropped to an 11-year low with a year-end price of $14.16 that resulted in a massive demand surge. As per the data from the U.S. Mint, it sold over 2.35 million silver bullion coins weighing 1 troy ounce within the first two weeks.
This figure continued to grow to over 3.3 million by the end of the month. The data also revealed that this was over a 300 percent increase compared to the sales of American Silver Eagle bullion coins in February, which totaled 650,000.
Experts believe that the fall in silver prices paired with the fear of a potential global recession due to the novel coronavirus outbreak spurred the investors to purchase silver in bulk.
U.S. Mint Pauses its Silver Coin Output
The sharp spike in demand lead to sudden unavailability of authorized dealers, and a temporary halt of production in the U.S. Mint’s West Point site based in New York.
Besides silver, the facility also produces gold, palladium, and platinum. Because of the supply shortage, silver bullion coins are now being sold at an 85 percent premium from the original price of $14.81, as of April 21, 2020.
The current price is still pretty low as compared to the quarter-high price of $18.03 recorded during January. Retail investors to clamor to get their hands on the silver bullion coins more than ever, which means silver is going to have a successful year ahead in terms of price and demand.
After an in-depth analysis of the current market situation, it’s easy to say that 2020 is an ideal time for investors to secure silver & gold storage investments. If you intend to buy silver bullion coins online, get in touch with our experts at Orion Metal Exchange.
Consult with our financial experts at 1-800-559-0088 before you make an investment move!