Strong Demand for silver coins has reached record levels in US & China
According to Michael Montgomery, writing for Silver Investing News, demand for silver in China is soaring. Imports of silver to China have reached record levels and there seems to be no early end in sight. Montgomery feels that the growth comes not only from demand from industry but also from investors buying the metal as a hedge against inflation. There is a growing demand for silver and gold coins from China's burgeoning middle class who have concerns about their economy and increasing inflation. China has just raised bank rates again in an attempt to curb inflation, which is accelerating alarmingly and is now over 6%. In 2010 imports of silver to China quadrupled and market analysts predict demand in China, and also India, to increase by as much as 30% this year.
Silver bullion is also gaining popularity in the US where the 'poor man's gold' syndrome is making silver coins very attractive to investors who are not in a position to buy quantities of gold. The US mint has produced over 20 million silver eagle coins so far this year and demand for the silver coins has reached an all-time high.