Half of Retail Traders Expect Silver To Trade Above $40/oz In 2025

Above, Morgan and Peace silver dollars. Photo by Armand Vaquer.

For those of us who are investors of silver, 2024 has been a good year. 

Currently, silver's COMEX spot price is at $30/toz. This is much better than when 2024 began when silver's spot price was at $23.639/toz.

What will happen in 2025? Some traders speculate we may see a silver spot price of $40/toz.

In any case, Kitco News took a look at silver's performance over the past year and what can be (possibly) expected next year.

Here's a snippet:

By late August, spot silver was once again testing resistance at $30 per ounce, and after an early September pullback saw the gray metal dip below $28, this was followed by a strong rally that saw spot silver break decisively above $30 per ounce on September 12. 

The $30 level was now acting as support for the gray metal, which quickly moved up to $32 by September 23, and after retesting support just above $30 per ounce on October 8, spot silver set what proved to be the annual high of $35 per ounce on October 21. After a brief dip down to the $33.600 range, the spot price once again rose back above $34 per ounce, topping out at $34.442 on October 28th, the last time silver would see trade above $34.   

84 retail traders, fully 48%, expect silver to trade above $40 per ounce next year, with $48 the all-time high set in March 2011.

To read the full article, go here. 

Kitco News: Solid Gains For Gold and Silver

Above, Morgan and Peace silver dollars. Photo by Armand Vaquer.

Some reports of the near 4% rise in silver's spot price yesterday said that it pulled up gold's price. It sounded as if silver acted like "coattails" for gold.

Silver is still over $24/toz today, although it settled down a bit. We'll see how things go as the trading day progresses.

According to Kitco News, the surge in silver was attributed to:

(Kitco News) - Gold and silver prices are solidly up in midday U.S. trading Wednesday, boosted by a weaker U.S. dollar index and a dip in U.S. Treasury yields at mid-week. More short covering by the futures traders and perceived bargain hunting are featured in the two precious metals. The technical posture for silver has significantly improved this week, which is inviting chart-based speculators to the long side of that market. December gold was last up $20.60 at $1,946.60 and September silver was up $0.91 at $24.36.

(Note: For exclusive market forecasts and intermarket insights, sign up to my new weekly Markets Front Burner newsletter, at  https://www.kitco.com/services/markets-front-burner.html )

Traders and investors are anxiously awaiting the Kansas City Federal Reserve’s annual symposium held in Jackson Hole, Wyoming late this week. Fed Chairman Jerome Powell and European Central Bank President Christine Lagarde are set to give speeches. The speeches are expected to provide insights into the future monetary policy direction of their respective central banks. The ECB is expected to pause its recent tightening cycle at its September meeting, while U.S interest rates are expected by most to remain elevated for an extended period due to still-significant upward inflationary pressures. The marketplace will be listening closely for a potential shift in the Fed’s inflation goal. An upward revision to the Fed’s present target of around 2% annual inflation could have major implications for the U.S. bond market, particularly longer-dated U.S. Treasuries, likely increasing Treasury yields which are already at the highest levels since 2007.

To read more, go here. 

How To Clean Silver Coins

Above, an uncirculated Peace dollar with tarnish (or
 patina) just beginning to form. Photo by Armand Vaquer.

After finding a bunch of Franklin half dollars in a strongbox that had been locked over 23 years, I found it necessary to clean one of them.

The reason was old masking tape was wrapped around it and the adhesive hardened onto the coin's surface.

Fortunately, I had some non-abrasive jewelry cleaner and cleaned the coin completely. It actually looks quite good.

Cleaning coins is something that stirs up controversy among coin collectors. Generally, cleaning coins (especially silver) with abrasive cleaners is a definite no-no.

Gainesville Coins has posted an article on this subject.

They begin it with:

There are few areas in numismatics as controversial as the matter of cleaning coins. This is certainly true among people who collect or invest in silver coins, which are prone to tarnish. Tarnishing, known as patina among numismatists, is something that coin collectors generally desire – especially when the patination has taken on an eye-appealing color or form.

In the realm of coin collecting, the general rule of thumb is to simply not clean your coins, period. Cleaning a coin can impair its surface and hamper its appearance, causing the coin to lose a significant amount of its collectible value and monetary worth.

It’s often the case that a cleaned coin suffers a decrease in value (above spot) of 20% to 30% or more. Harsh, abrasive cleanings sometimes cut the numismatic premium by more than half. Many silver coins that have been cleaned will lose virtually all their numismatic premium, causing such pieces to be traded only for their bullion content. While this, of course, does not negatively impact a cleaned silver coin’s merit as a bullion vehicle, it does eliminate its potential for being traded as a numismatic item – a lucrative market for collectible silver coinage.

While we address this topic to answer questions some people may have on how to clean silver coins, we want to make it clear that cleaning coins is generally not advised, nor do we endorse it. Cleaning coins, especially with abrasive agents or caustic chemicals, can cause irreparable damage to the coin and irrecuperable loss to its value.

To read more, go here. 

The Case For "Key Date" Coins

Above, Whitman penny album (no. 2). Photo by Armand Vaquer.

It is funny, Jeff Garrett, the author of the following article in CoinWeek, started with the Whitman album for collecting Lincoln pennies from 1941 to date starting in 1970. I started collecting them a bit earlier than he did. I still have them (albums one and two).

He has penned an article on "The Case For "Key Date" Coins". In it, he describes the collecting progression from pennies to American Silver Eagles on up to Morgan and Peace silver dollars (pretty much my pattern, except I started with Morgans after the pennies).

The article begins with:

Choosing which coin series to collect is one of the first challenges facing those new to the hobby. There are dozens to choose from, and if you include world and ancient coins, the options become nearly endless. Untold numbers of new collectors have started over the years by filling coin boards and albums. Perhaps one of these started you on your numismatic journey. Mine began with a simple Whitman folder of Lincoln Cents from 1941 to date. This was around 1970.

Today, new collectors are inspired by the mass market sales of American Silver Eagles and other modern coins. The vast sums spent marketing these coins to those who might be interested in collecting is a huge driver for growing the hobby. Like those who started with a Whitman folder, modern coin buyers often turn their attention to more advanced numismatic pursuits. This is where it gets tricky for new collectors.

For many, the natural progression is to move to earlier series of what they now collect. Some will decide to collect a complete set of Lincoln cents 1909 to date. Many of the Silver Eagle buyers will turn to Morgan and Peace dollars dated 1878-1935. Regardless of what they collect, they will then need to decide which grade range of coins to pursue. This is usually a function of budget. Buying the best grades you can afford is age-old advice that has withstood the test of time.

To read the full article, go here. 

Silver Hovering Around $25.60/toz

Above, a 1928 silver Peace dollar. Photo by Armand Vaquer.

People are watching the Federal Reserve this week as they meet to discuss what will be the amount they will hike in interest rates. To say they're jittery would be an understatement.

However, it hasn't silver's spot price. It is actually doing nicely, thank you.

Here's what COMEX is reporting on silver:

 

Silver Remains Above $25/toz

Above, circulated Morgan and Peace silver dollars. Photo by Armand Vaquer.

Silver's spot price continues to stay above $25.00/toz.

This is good news for investors who have already stockpiled the precious metal when the prices were down.

Currently, the spot price for silver (according to Monex):

$25.36

-0.01

-0.04%

Low   $25.20

High   $25.61

4/20/2023 6:08:38 PM PDT   prices in USD / toz

Silver Spot Price: Now More Affordable To Buyers

Above, Morgan and Peace dollars. Photo by Armand Vaquer.

There's an old saying, "Buy low, sell high." This has been the case pretty much since the beginnings of the Stock Exchange. This also holds true when it comes to precious metals.

The spot price for gold is currently $1,879.00 per troy ounce. Since gold is out-of-reach for most people, silver is a viable alternative. It is much more affordable.

According to Monex, silver is now at:

$22.25

-0.07

-0.31%

Low   $22.07

High   $22.45

2/8/2023 5:28:54 AM PST   prices in USD / toz

Since current spot price for silver has been declining this past week, now is the time to buy while the spot price is low. 

While this opportunity is knocking, shouldn't you now open the door?

Ike and Susan B. Anthony Dollars

Above, a 1978 Eisenhower and 1979 Susan B. Anthony dollars. Photo by Armand Vaquer.

Two more coins I found this morning from the box of stuff from the strongbox were a 1978 Eisenhower dollar (also called the Ike dollar) and a 1979 Susan B. Anthony dollar. 

Neither are worth too much, maybe a little bit over denominational value. Of the two, the Anthony dollar is probably worth less than the Eisenhower dollar. It was just an unpopular coin, it is about the size of a quarter. Since it was introduced during the administration of President Jimmy Carter, critics called the Susan B. Anthony dollar the "J.C. penny".

On the Susan B. Anthony dollar, from Wikipedia:

The Susan B. Anthony dollar is a United States dollar coin minted from 1979 to 1981 when production was suspended due to poor public acceptance, and then again in 1999. Intended as a replacement for the larger Eisenhower dollar, the new smaller one-dollar coin went through testing of several shapes and compositions, but all were opposed by the vending machine industry, a powerful lobby affecting coin legislation. Finally, a round planchet with an eleven-sided inner border was chosen for the smaller dollar.

The original design for the smaller dollar coin depicted an allegorical representation of Liberty on the obverse, but organizations and individuals in Congress called for the coin to depict a real woman. Several proposals were submitted, and social reformer Susan B. Anthony was selected as the design subject. The reverse design of the Eisenhower dollar was retained, an engraving of the Apollo 11 mission insignia showing an eagle landing on the Moon. Both sides of the coin, as well as the rejected Liberty design, were created by Frank Gasparro, the Chief Engraver of the United States Mint.

One and a half billion coins were struck in anticipation of considerable public demand, but the Anthony dollar was poorly received, in part because of confusion caused by its similarity in size and metallic composition to the quarter.

On the Eisenhower dollar, from Wikipedia: 

The Eisenhower dollar was a one-dollar coin issued by the United States Mint from 1971 to 1978; it was the first coin of that denomination issued by the Mint since the Peace dollar series ended in 1935. The coin depicts President Dwight D. Eisenhower on the obverse, and on the reverse a stylized image honoring the 1969 Apollo 11 Moon mission based on the mission patch designed by astronaut Michael Collins. Both sides were designed by Frank Gasparro. It is the only large-size U.S. dollar coin whose circulation strikes contained no silver.

In 1965, because of rises in bullion prices, the Mint began to strike copper-nickel clad coins instead of silver. No dollar coins had been issued in thirty years, but, beginning in 1969, legislators sought to reintroduce a dollar coin into commerce. After Eisenhower died that March, there were a number of proposals to honor him with the new coin. While these bills generally commanded wide support, enactment was delayed by a dispute over whether the new coin should be in base metal or 40% silver. In 1970, a compromise was reached to strike the Eisenhower dollar in base metal for circulation, and in 40% silver as a collectible. President Richard Nixon, who had served as vice president under Eisenhower, signed legislation authorizing mintage of the new coin on December 31, 1970.

Although the 40% silver collector's pieces sold well, the new base-metal dollars failed to circulate to any degree, except in and around Nevada casinos, where they took the place of privately issued tokens. There are no dollars dated 1975; coins from that year and from 1976 bear a double date 1776–1976, and a special reverse by Dennis R. Williams in honor of the bicentennial of American independence.

As Wikipedia states, the Eisenhower dollar circulated around Nevada casinos. They were fun to use when I spent Spring Break in Las Vegas in 1973, especially while playing roulette. I thought the Susan B. Anthony dollar was too much like a quarter and the portrait of Anthony was ugly (like a hag or wicked witch). 

I am definitely keeping the Eisenhower dollar as they are not easy to find. I haven't seen a circulated one in decades.

Investors See Gold and Silver As 2023 Top Performers

Above, a 1928 Peace silver dollar. Photo by Armand Vaquer.

We're in a new year and precious metals retail investors are predicting what commodities will be 2023's top performers.

According to Kitco News:

(Kitco News) With precious metal picking up momentum towards the end of the year, Main Street investors look for gold and silver to be the top performers in the new year, according to Kitco's online survey.

Gold ended the year flat, while silver finished up nearly 3% in 2022. Spot gold kicked off 2022 at around $1,828 an ounce and ended it at just above $1,822 an ounce. Spot silver opened last year at $23.28 an ounce and ended the year at $23.93 an ounce.

"Thanks to an impressive recovery in the final quarter, the gold price ended the year at virtually the same level it began it," said Commerzbank analyst Carsten Fritsch.

The biggest macro hurdle for precious metals in 2022 was the historic tightening cycle by the Federal Reserve, which saw the most rapid hiking pace since the early 1980s. Overall, rates climbed by 425 basis points in 2022, rising to a range between 4.25%-4.5%.

"In view of the considerable headwind generated by the pronounced rate hikes implemented by central banks, in particular the Fed, last year's performance of the gold, silver and platinum prices was thus remarkable," Fritsch noted.

Looking into the new year, analysts see gold and silver doing well as markets start to price in a Fed pivot.

To read more, go here. 

Numismatic News: Morgan and Peace Dollars, Old and New

Above, a 1921 Morgan Silver Dollar, a key date coin. Photo by Armand Vaquer.

Earlier this month, I ordered a 2021 Morgan Silver dollar and an American Silver Eagle.

The 2021 Morgan silver dollar is a centennial commemorate coin. I just checked and my coins are en route from Gallup.

Numismatic News has an article on this and the old Morgan and Peace dollars. Regular readers of this blog know that I have a big fondness for the Morgan silver dollar.

They begin it with:

In the year 2021, the United States Mint got just about every collector to sit up and take notice when they unveiled the 2021 Morgan and Peace dollars as centennial versions of the two classic series. The ever-present interest in the Morgan and Peace dollars went up a further notch and stayed there as the new versions were unveiled. To the chagrin of many in the collector community, the very next year the official word was that silver from suppliers to the Mint had been disrupted by the COVID pandemic, and there would be no Morgan and Peace dollars dated 2022. That announcement got many of us thinking that the 2021’s were going to be a one-hit wonder or the proverbial flash in the pan, and thus the dust settled a bit. But right now, the Mint is planning to release a set of 2023 Morgan and Peace dollars – probably with the same wealth of mint marks or privy marks as before – and this means we might be at the beginning of a new series. Whether this will grow over time to something as established and respected as the silver Eagles is still a mystery. But the time may indeed be ripe to look at collecting the classic Morgan and Peace dollars, or if we have already done so, at examining just what might still qualify as a good deal.

 To read more, go here.