Silver coin shortage boosts demand

A shortage in silver coins has boosted demand for the asset from investors.

"Silver [coin] demand is absolutely through the roof," Neil Vance, wholesale manager at the Perth Mint, tells Reuters. "There seems to be a bit of frenzy as people think there is a shortage of silver. But in fact it is a (crunch in) manufacturing capacity."

Indeed, the US Mint cannot meet demand and has already begun to set weekly sales quotas for its American Eagle coins and the Canadian Mint has followed suit. Buyers have since turned their sights to overseas markets, with the Perth Mint selling a record of 2.5 million ounces of silver this month, four times the amount sold in August. It has also begun to ration supplies.