Rising Mint Sales Show Strong Silver Surge in 2024
Silver ran laps around gold and stocks in May 2024, and now that we have the complete monthly figures for May, we see that silver trailed off in the last week but still kept its commanding lead for the month of May, up nearly 15%, and year to date, up 27%. A very interesting number is the doubling of silver over the last five years, which I will explain.
American Silver Eagle wholesale prices from the U.S. Mint’s authorized purchasers to dealers rose in the past few months from under $4 per ounce over spot price to nearly $5 per ounce over spot price. The price hike occurred despite increased production and sales by the U.S. Mint and while silver bullion coins from other major mints around the world remained below $2 over the spot price.
American Silver Eagles selling briskly
It is a difficult situation that I hope to address with U.S. Mint Director Ventris Gibson during an upcoming meeting in Washington, D.C., later this year. Additionally, American Silver Eagle coin sales are up significantly in 2024 from January through May. So far this year, the U.S. Mint has sold 12.488 million American Silver Eagles, more than during the same time period in 2023, which was 8.242 million. In 2022, it sold 9.801 million.
For solar cells, silver helps conduct electricity when light strikes the photovoltaic cell. A typical solar panel contains up to 20 grams of silver (0.64 Troy oz). For EVs, nearly every electrical connection in a vehicle contains silver, and over 55 million ounces of silver are used each year in motor vehicles. EVs are expected to account for 49% of silver use in automobiles by 2040.”
Just to remind you of silver’s gains in the last three months, it was trading at $22.67 at the end of February after declining during the first two months of the year. Then it began a 33%+ surge.
On May 14, the Biden Administration announced that tariffs on Chinese exports of solar energy panels would double from 25% to 50%, and tariffs on Chinese electric vehicles (EVs) would quadruple, from 25% to 100%—that’s like paying double the asking price off the top.
For solar cells, silver helps conduct electricity when light strikes the photovoltaic cell. A typical solar panel contains up to 20 grams of silver (0.64 Troy oz). For EVs, nearly every electrical connection in a vehicle contains silver, and over 55 million ounces of silver are used each year in motor vehicles. EVs are expected to account for 49% of silver use in automobiles by 2040. The Biden lawmakers not only underwrite and encourage EVs, but, in some cases, mandate more EVs.
So, silver’s gain was over 33% in the last three months after losing 5% in the first two months. Silver’s biggest May spurt came after President Biden’s massive May 14th tariff increases.
Why silver has doubled in the last five years
Silver industrial demand rose 9% in 2023 and is expected to rise in 2024, according to the Silver Institute. Over the last three full years (2021-23), the Silver Institute estimates that there was a cumulative deficit of 474 million ounces, equivalent to 14,743 metric tons of silver. Adding this year’s estimate of a 215-million-ounce (6,700 ton) supply-demand deficit brings the cumulative four-year deficit to 21,443 tons of silver. This is mostly why silver has doubled in the last five years.
So far this year, the U.S. Mint has sold 12.488 million American Silver Eagles, more than during the same time period in 2023, which was 8.242 million. In 2022, it sold 9.801 million.”
Colorful-toned coins in the next column
In my next column, I’ll bring you a special report with photos on coin “toning” from both natural and artificial sources. A coin’s tone can help or hurt its market price. Toning can be caused by a coin’s packaging or handling and can create unique coloration. This is an important subject when discussing rare coins, and I will bring you my experience from a lifetime of coin grading and viewing many variations of gorgeous and ugly tone coloration in rare coins.
