Silver's Low Price Likely to Spur Holiday Coin Buying

November is nearly at an end, and for silver market participants, that's probably a good thing — though the white metal is up 0.15 percent for the month, it hit its lowest price since February 2010 early on.

Already, it's looking like December may be brighter, with Kitco News reporting Wednesday that numismatic silver coins and smaller gold coins are likely to sell like hotcakes as the holidays approach. According to the news outlet, those items are generally popular gifts, but this year will likely be even more in demand due to low metals prices.

Unfortunately, the most popular coins — the US Mint's silver American Eagles and the Royal Canadian Mint's silver Maple Leafs — are currently on allocation. That means there aren't enough to give dealers as many as they'd like. Kitco News quotes Peter Thomas, senior vice president at Zaner Precious Metals, as saying that the supply gap is likely the result of the mints being "thrown off after the slow demand earlier in the year."

Investors looking to buy physical silver on the cheap should thus be aware that availability may prove an issue.

Junior company news

The US Thanksgiving holiday often makes for a slow news week for commodities, but the silver space has definitely seen some activity. Here's a look at a few companies that have put out news in the last few days.

Monday saw acquisitions and exploration company Mines Management (NYSEMKT:MGN) release its financial results for the third quarter of 2014. The company reported a net loss of $1.5 million, slightly less than the $1.8 million it recorded in the year-ago period, on the back of a decline in operating expenditures.

The next day, Defiance Silver (TSXV:DEF) announced that it has received a drill permit and secured long-term surface rights at its Mexico-based San Acacio silver deposit.

Bruce Winfield, the company's president and CEO, commented, "[w]ith these recent developments we are making excellent progress toward carrying out our first drill program at San Acacio we are looking forward to the results of this program as we are targeting the lowest hanging fruit with the lowest risk/highest reward equation of the exploration potential at San Acacio."

Wednesday, Garibaldi Resources (TSXV:GGI) confirmed high-grade silver mineralization 150 meters north of Silver Eagle discovery hole SE-14-01, located at its Rodadero North project in Mexico. The confirmation was made via assays from channel sampling.

Later this week, the company will undertake drill testing to try to expand the Silver Eagle system northwards.

The same day, Kootenay Silver (TSXV:KTN) put out further high-grade results from Phase 1 drilling at the La Negra discovery, located at its flagship Promontorio silver resource in Mexico. The program is now complete, with results from just two holes still pending.


Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Related reading:

Kootenay Silver Gains on Further High-grade Results at La Negra

Silver's Low Price Likely to Spur Holiday Coin Buying from Silver Investing News