2013 was one hell of a ride for silver stackers. After coming off a slowdown in 2012, the precious metal continued a downward spiral throughout 2013. January 1st, 2013 saw the spot price for silver at just about exactly $30, but ended the year on December 31st at $19.50. That is a 35% fall in price in just 52 weeks. Only taking this into account can lead to confusion among average investors. In this article we will review the year that was 2013 by analyzing American Silver Eagle sales, the rising cost of mining, overseas demand, and some of the manipulation seen in the market.
American Silver Eagle Sales:
We have covered American Silver Eagle sales quite a lot on this blog, but we haven’t done an update in nearly 6 months. When we last left off in July, silver eagle sales sales were on pace for nearly 50 million ounces. While we didn’t quite reach that amount, we did hit a record amount of sales from the US Mint.
Looking at US Silver Eagle sales is a a good way to judge the demand for physical silver among US investors. Americans wanting to invest in physical silver are left to a few options including foreign and private mints, but looking at the US mint’s numbers is a good way to analyze this on a simple scale.
It is clear that 2013 was not a good year for silver if you are someone trying to make a quick turn around on their investment. If you are not in this for the long term fundamentals, you shouldn’t be in precious metals. If you truly understand how the metals markets work, then you didn’t sell any of your gold or silver in 2013 and likely took advantage of the discounted prices. While some have cringed at the prices that have come in 2013 for the precious metals sector, I smile knowing that I can now afford to add even more to my stack. Remember, if you haven’t sold any of your silver, then you haven’t lost anything. This is all just short term noise in a long term game.
Hopefully 2014 will bring a more prosperous year for the metals sector.
Source The Austrian Insider