Demand for silver bullion has been momentous the past few weeks so much so that the US mint has now sold out of its 1ounce American Eagle Silver coins and the Canadian Mint has taken to rationing their 1 ounce Silver maple Leaf coins.
This comes at the same time as silver has taken a hit from a huge selling of silver futures.
This frantic selling is resulting in prices being pushed lower as fearful physical silver owners sell their holdings further weighing silver down.
Despite sentiment being poor for some, their still remains to be a good feeling over both silver and gold in terms of holding these assets as a means balancing out your portfolio as a means of insurance.
So why is silver so popular despite the price falling?
People still don’t completely trust their governments and don’t fully believe the notion that all the promises made by policy makers will be fulfilled and so in a way are creating their own central banks of precious metals.
Another important point to note is that when large financial instiutions play down precious metals it may well because “they want to buy something” says gold bug Marc Faber. Large organisations could well be preparing to commence stock piling gold as the US have finally ended QE.
For now, we feel that the increased demand is likely to last for as long as the price is subdued.