The Royal Mint also revealed it’s 1oz Britannia 2021 silver coin saw sales skyrocket by 100% between the months of March and April, compared to 2020.
“We had high demand in 2020 as people moved to safer assets during the worst part of the pandemic, but this has continued as more investors realize the positives of precious metals,” said the director of precious metals at the mint, Andrew Dickey. “Silver has a large appeal because it is intrinsically valuable as a finite resource and has a much lower price when compared to gold – making it attainable by more people.”
Physical demand for the number two precious metal started going up in February after some social media groups attempted to cause a short-squeeze. However, since then, analysts say silver demand is staying strong, with investors wanting to capitalize on that demand as the global economy recovers from the COVID-19 pandemic.
Other analysts say that silver is an attractive monetary hedge against rising inflation.
“Many analysts are predicting a great future for silver for the rest of 2021. Monetary policies are normal drivers for the demand in precious metals – and they are are expected to stay relevant as the economy recovers from covid,” said Dickey. “Also, silver’s use inside new green products and technologies has helped this sentiment towards the asset.”
Strong demand for silver pushed the price to almost a 2-month high just last week to $28 per ounce. Although silver has decreased from its recent highs, it is still maintaining critical support. Silver futures for July last sold at $27.05 per ounce, lower by 0.5% on the day.