Posted on Saturday, June 22, 2024
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by Mike Fuljenz
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Rising Mint Sales Show Strong Silver Surge Continues in 2024
Silver emerged as the shining star in May, outperforming both gold and stocks. As the complete monthly figures for May become available, it is evident that silver experienced a slight dip in the last week but still maintained a significant lead for the month, with an increase of nearly 15%. The impressive performance of silver extended to the year-to-date figures, showing a substantial rise of 27%.
Precious Metals and Stock Indexes Performance
Precious Metals: 2024 to May 31 May Alone Stock indexes: 2024 to May 31: May Alone
SILVER +27.03% +14.82% S&P 500 +11.07% +4.80%
GOLD +12.63% +1.37% NASDAQ +11.48% +6.88%
Platinum +4.29% +10.25% Dow Jones +2.64% +2.30%
Palladium -18.55% -5.54% Russell 2000 +2.12% +4.87%
Source: Yahoo Finance
Recent data from the U.S. Mint also indicates a surge in silver sales for May and the year-to-date period.
American Silver Eagle Sales
American Silver Eagle Sales 2022 2023 2024 1-year gain May Only Gain
January to May (millions of ounces) 9.801 8.242 12.488 +52.3%
May Mint sales (millions of ounces 1.35 1.59 1.75 +10%
The rise in American Silver Eagle wholesale prices from the U.S. Mint’s authorized purchasers to dealers indicates a growing demand and market interest. Despite increased production and sales by the U.S. Mint, the wholesale prices have risen significantly, reaching close to $5 over the spot price.
Insight: The increasing demand for American Silver Eagle coins suggests a preference for physical precious metals among investors amidst economic uncertainties.
A meeting with U.S. Mint Director Ventris Gibson is planned in Washington D.C., later this year to address the price escalation and market trends. The strong demand for American Silver Eagles is evident as sales have surged in 2024 compared to the same period in 2023 and 2022.
It is worth noting that silver’s price recorded a notable surge in the last three months, following a decline during the initial two months of the year. The momentum continued with a 33%+ increase:
Insight: The volatility in the silver market underscores its sensitivity to geopolitical and economic factors, reflecting its status as a safe-haven investment during times of uncertainty.
Aside from market dynamics, silver’s industrial applications, particularly in the energy sector, play a significant role in its demand outlook. The Silver Institute forecasts a further increase in industrial demand for silver in 2024.
Insight: Silver’s dual role as an industrial metal and a monetary asset contributes to its resilience and attractiveness to both investors and industrial users.
The data from the Silver Institute highlights a consistent supply-demand deficit in the silver market, indicating a persistent imbalance that has driven silver prices higher over the years.
Insight: The structural deficit in the silver market underscores its long-term investment appeal and supports a positive price outlook.