As the Fed and Central Banks continue to pump huge amounts of liquidity into the market, investors have been buying record amounts of Canadian Silver Maples. Demand for the Canadian Gold & Silver Maples hit a record in 2011, but then declined in 2012 as investors started to believe that the monetary authorities had the financial system back under control — an illusion that will cost them dearly in the future.
After the huge take-down of the price of gold and silver during April of this year, demand for the Canadian Silver Maple Leaf bullion coins picked up to record levels. Not only were Silver Maple sales strong in the second quarter due to the extremely low price of silver, but demand was even greater during the third quarter… hitting a new all time record.
If we look at the chart below, we can see just how much sales of the Canadian Silver Maples have increased compared to the same period last year.
In the first nine months of 2012 total Silver Maple sales were only 12.8 million compared to the 19.7 million sold so far in 2013. This is a huge 54% increase y.o.y at nearly 7 million more Silver Maples sold.
Again, the third quarter sales of Silver Maples hit a record of 6.7 million compared to 4.8 million in the same period last year. This is the same phenomenon taking place with Silver Eagle sales. Sales of Silver Eagles increased in the third quarter at 11.0 million compared to 10.8 million in Q2 2013.
Furthermore, Gold Maple Leaf sales in the third quarter are still quite strong even though demand has dropped off compared to the previous quarter.
Sales of Gold Maples are up a staggering 85% in 2013 at 867,000 ounces compared to the first nine months in 2012 when only 468,000 were sold. Actually, Gold Maple sales are holding up much better than Gold Eagle sales.
Gold Maple vs Gold Eagle Sales (ounces)
Gold Maple Q1 = 269,000
Gold Maple Q2 = 403,000
Gold Maple Q3 = 195,000
Total Q1-Q3 = 867,000
Gold Eagle Q1 = 292,500
Gold Eagle Q2 = 336,000
Gold Eagle Q3 = 75,000
Total Q1-Q3 = 703,000
Here we can see that Canadian Gold Maples sold 195,000 oz during the third quarter compared to 75,000 oz of Gold Eagles. So, in the first nine months of 2013, Gold Maples have sold 23% more (164,000 oz) than Gold Eagles.
Gold & Silver Maples Sales Already Surpass 2012 Totals
Demand for the Gold & Silver Maple Leaf coins have been so strong in the first three-quarters of 2013 that they have already beat the total figures for 2012:
Total Silver Maple Leaf sales in the first nine months of 2013 were 19.7 million, surpassing the total 18.1 million for 2012. In addition, Gold Maple sales are already 12% higher at 867,000 oz compared to 772,000 oz for the total in 2012.
If this strong sales trend continues, we may see another ALL TIME RECORD in Silver Maple sales in 2013. In 2011, the Royal Canadian Mint sold 23.1 million Silver Maples which is only 3.4 million more than has been sold in the first three-quarters of 2013.
I would imagine we are going to see at least an additional 4.5-5 million Silver Maples sold in the last quarter which would bring the total for 2013 to be 24.5-25 million. I don’t believe Gold Maple sales in 2013 will surpass their record of 1,150.285 set in 2011. We would have to see more than 284,000 oz of Gold Maple sold in the remaining quarter of 2013 to beat this record.
This just goes to show how much more investors are buying Silver Maples & Eagles compared to their gold cousins… the Gold Maples & Eagles.
I believe silver will outperform gold in percentage terms as an investment and store of value in the next several years. As I have mentioned several times in prior articles, the Fed and monetary authorities can print money, but they cannot print Silver, Gold or Barrels of Oil.
As gold revalues much higher in the future, most of the public will only be able to purchase silver as its price will be more afordable. Thus, the demand for silver will be much greater than gold, pushing its value up to levels that the present disgruntled precious metal investors would believe impossible.