A slackening U.S. economy typically means that a slowdown in industrial demand for silver will soon be forthcoming. Nevertheless, the re-monetization of silver would more than take care of any such slump in demand.
Even if new supplies of silver are tapped, there is still a considerable premium associated with finding, buying back, smelting and refining the precious metal. Essentially, the physical market for silver would go completely off exchange.
Continuing strong investment demand in the face of falling prices — where a 60% price correction already has been seen — practically insures that this increasing component of the demand profile for silver will be like nothing anyone alive has ever seen.
U.S. Mint Reports Record Sales of Silver American Eagles
The U.S. Mint’s sales of silver Eagles reached a whopping 4,406,500 ounces in July of this year, showing a 93.4% increase over sales seen in July of 2012 and making a new monthly record.
Furthermore, for the first seven months of 2013, sales of American silver Eagles grew at the fastest pace ever, hitting an equally impressive 29.4 million ounces.
The U.S. Mint even stated two weeks ago that if demand continues at the current pace, “2013 will set a new record for sales.”
Royal Canadian Mint Also Reports Record Volume for Silver Maple Leafs
Last month, the Royal Canadian Mint said that, “year-to-date, we’ve had record volume for silver Maple Leafs, the greatest we’ve had in the over 25 years that we’ve produced them.”
Also, according to a spokesperson for the Mint, “because the Northern Hemisphere summer is traditionally a slow time for coin and metal sales, but that’s not the case this year… when prices drop in the market, investors see it as a buying opportunity.”
India’s Silver Imports Highest in Five Years
In India, silver imports grew an incredible 258.6% during the April through July period of this year. This represents the highest level for this four-month period seen in the last five years.
In fact, India’s silver imports for July alone were the second highest of any month observed over the last five years.
While it may well be that Indians are turning to silver in increasing numbers because of the government’s continual efforts to thwart gold buying and as an alternative to its notably depreciating currency the rupee, these silver import increases are still staggering.