Physical Demand for Silver Spikes as Price Drops to an 11-year Low

By Myra P. Saefong

March 19, 2020

Silver prices have dropped to their lowest level since 2009, boosting demand for the physical metal at a rate not seen in a decade.

Supplies of physical silver, as well as gold, “remain well below extremely strong demand,” said Dana Samuelson. “The fall in the underlying gold and silver prices, coupled with the potential recession due to the sharp economic downturn the coronavirus is causing has spurred the public to buy physical precious metals at the fastest pace in 10 years.”

“With both the U.S. Mint and the Royal Canadian Mint on back order, dealers have scrambled to buy anything that remains available to buy, driving bids substantially higher for all physical gold, silver…coins and bars that are immediately available,” said Samuelson.

On Comex, silver futures prices saw their most-active contract drop to $11.77 an ounce on Wednesday, the lowest since Jan. 22, 2009, according to Dow Jones Market Data. Prices moved up a bit to settle at $12.134 Thursday.

“The poor man’s gold is on sale today and the fire sale will not last unless there is an all-out deflationary crash which brings its own appeal in holding silver as a hedge,” said Peter Spina, president of silver news and analysis provider SilverSeek.com.

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