The spread of COVID-19 around the world in 2020 changed many aspects of life. For collectors of coins and precious metals as well as newcomers to the investment arena, this included an increased demand for silver bullion. At Colonial Acres Coins, we have been part of this development and watched with interest as suppliers and shops struggled to keep up with the explosive demand for silver. Usually silver rests in the shadow of gold bullion, but this passion for silver shows no signs of abating any time soon. Multiple factors are involved in the desire for silver.
Forward-Thinking Silver Bullion Investments
Many collectors are buying up silver, or “stacking” in industry parlance, as a hedge against inflation. This means they consider silver to be an asset that will, at the very least, maintain its current value or even increase in value. With the up-and-down economics during 2020, many people feel more secure by buying silver.
Lack of Supply
Supplies of silver decreased when minters closed production starting in March 2020 due to the pandemic. When they reopened, they were at limited capacity. At the same time, investors began looking to collect silver bullion. Many people kept working in 2020, and with reduced expenses due to shop and restaurant closures and, in many cases, little or no commuting, they had extra funds they wanted to put to work. Therefore, demand began spiking as supplies grew smaller.
The silver market has also been affected by anomalous investment patterns, such as a cohort of digital investors who bought shorted stocks. This trend was made public in the case of the retail video game chain GameStop.
Experts in investing expect industrial demand for silver in 2021 to be higher than it has been since 2017. Several niches, in particular, are predicted to want more silver, including:
- Silverware production
Economical mechanics are intricate and fickle, but insiders expect the silver market to stay strong through 2021.
The demographics for silver investors also shifted during 2020 and into early 2021. In the past, many investors in silver were older, but now younger people, as well as more women, are interested in buying silver. This could be in part because interest in silver is spurred by social media platforms.
Many younger people have more money in their accounts after being required to limit activities during 2020 and the early months of 2021. They spend many hours on social media, and their exposure to the general interest in investing and in silver, in particular, could be feeding the demand.
Choose a Bullion DNA Dealer
At Colonial Acres Coins, we understand that investing your hard-earned money is a big step. This is why we are a trusted Bullion DNA dealer. Instituted by the Royal Canadian Mint, the Bullion DNA Program offers you the highest security available for silver bullion. This program enables dealers to quickly authenticate coins.
Authentic bullion coins feature a sculptured maple leaf, as in times past, but from 2015 to the present, the Royal Canadian Mint added micro-engravings of each coin’s production year. Every etching is encoded and recorded for authentication purposes. By using a proprietary reader, we can easily authenticate bullion so you will have confidence in your investments.
Investing can sometimes seem mysterious, but with the right information, you can turn it into an adventure. We are ready to answer any of your questions and offer advice to help you make the best decisions to achieve your goals. Contact us today to begin your investment experience.