Silver price extends rally as annual US silver coin sales reach all-time high

The price of silver has risen so far in today’s trading session following yesterday’s precious metal rally and fall in global equity markets. Meanwhile, the most recent US mint report shows that annual sales of US American Eagle silver coins have reached an all-time high.

Silver for immediate delivery had gained nearly six cents, or 0.33 percent, to $17.11 as of 06:32 GMT, and was trading over three percent above its 50-day simple moving average of $16.59, having managed to close above the measure during the previous session for the first time since 1 July. Yesterday, the precious metal rallied 4.4 percent as global equities tumbled on concern that growth may slow in China and an announcement of a snap election in Greece.

According to HSBC analyst James Steel, further gains in precious metals would require “the financial market to become unnerved over equity declines in China, fresh sovereign risk worries in the euro zone and currency market volatility […] There may be some additional short covering left in the market, especially if Asian equities wobble further.”

The price of silver for March delivery had risen 0.2 percent, or over three cents, to $17.16 as of 06:35 GMT. According to Monday’s report from the US Mint, 2014 Silver Eagle sales reached a new annual record surpassing last year’s total by nearly 100,000 coins.

The Washington-based institution sold nearly half a million silver coins over the weekend, putting the total for the month at 1,317,000. The strong weekend demand has pushed overall annual sales to 42,864,000, ahead of last year’s record 42,765,000 coins, with a couple of weeks still remaining until the end of the year.

Based on the two most actively traded COMEX contracts, with a total volume of trade in gold and silver at 25,666 contracts as of 06:35 GMT today, the gold:silver ratio was at 72.03, virtually unchanged from yesterday’s 72.04 close.