Investors Pile Into Physical Silver

Posted by Adam Sharp - Monday, April 4th, 2011

The Financial Times put out a nice piece on silver mania today. Here's an excerpt, along with a very informative infographic. Emphasis added.

"Silver’s hot. People want it. People don’t want to have money in the bank," says Eric Streiner, the shop’s manager. Buyers include everyone from “business executives to lunatics", he adds.

Why would people want constantly-eroding dollars in their bank account? When you account for inflation and taxes on the pitiful interest earned, the appeal of precious metals is obvious. More on that here.

Nowhere is the unbridled enthusiasm for silver clearer than at the level of coins and small bars – the type of product most accessible to smaller investors. All the world’s top mints are selling silver coins at record pace: the US Mint has sold 12.4m ounces of silver American Eagles in the first three months of the year – equivalent to about 6 per cent of quarterly global mine output.

Read the rest at FT.com.

In Q1, US Mint sales accounted for 6% of total global mine output. That is a staggering amount of investor demand. It should serve as a warning to the Fed and Treasury. Rest assured, they'll ignore it and continue on with business as usual.

The FT also put together this excellent infographic. The bottom-left chart shows sales of U.S. Silver Eagles. Talk about a ramp...

silver outlook

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