Gold 0.21%
£3,207.63 OZ
Silver -2.37%
£48.53 OZ
Platinum -0.49%
£1,359.78 OZ
The Silver Britannia is capital gains tax free in the UK, making is a very popular choice with UK investors
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A deep-dive into The Perth Mint’s monthly Silver coin and bar sales and how this changes with movements in the Silver spot price reveals an interesting insight into Silver investor psychology. Several key trends have been identified which will help readers understand the supply and demand of physical Silver at times when Silver prices have risen or fallen
The physical Silver sales data shows clear evidence that Silver buyers are extremely price sensitive and that demand for this commodity is elelastic. The Perth Mint exports Gold and Silver bars and coins to over 130 countries and so their sales data is an excellent barometer to physical demand
There is a clear inverse relationship between silver prices and demand: when silver prices decline, sales volumes rise as buyers perceive it as a good buying opportunity. In July 2022, silver prices averaged $19.09/oz, and sales surged to 2,465,513 ounces—the highest recorded in that year. Similarly, in September 2022, silver prices dropped further to $18.91/oz, driving sales to 2,579,941 ounces. This trend also appeared in March 2020, when prices fell to $14.90/oz, and sales spiked to 1,736,409 ounces during the COVID-19 pandemic.
Higher silver prices tend to coincide with a drop in sales volumes, suggesting price sensitivity among buyers. In August 2020, silver prices spiked to $26.99/oz, and sales dropped to 1,431,036 ounces, compared to the previous months when prices were lower. In May 2024, prices increased to $29.48/oz, and sales dropped to 796,934 ounces, down from stronger sales earlier that year.
The data highlights that during economic crises, investors flock to silver, driving sales higher regardless of prices. In 2021, amidst concerns about inflation, demand remained high despite elevated silver prices averaging around $25–$27/oz in February-April, with sales volumes exceeding 1.7 million ounces per month.
The data also shows recurring patterns at the start of the year, where sales volumes tend to be higher. This suggests a seasonal investment trend, where buyers renew their silver holdings early in the year.
This recurring surge at the start of the year aligns with investment portfolio rebalancing and renewed purchasing activity.
Silver investors are clearly opportunistic in purchasing, seeing declines in prices as buying opportunities. Even when prices were towards the higher end of the scale between the 2017-2024 period, there was a stable demand for physical Silver suggesting a strong underpinning demand that is insensitive to market prices
During the 2017 through to 2024 period, January consistently sees stronger sales volumes, suggesting an annual buying cycle among investors.
Examples:
This recurring surge at the start of the year aligns with investment portfolio rebalancing and renewed purchasing activity.
Investing in Silver
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