The Evolution of 90% Silver: A Market Analysis from 2023 to 2024
In the last two years, the landscape of 90% silver — comprising dimes, quarters, and half dollars — has transformed dramatically. Reflecting on where the market stood in May 2023 compared to the end of December 2024 reveals key changes in demand, pricing, and consumer sentiment.
The Hike in Premiums: May 2023
In May 2023, premiums for 90% silver were at record highs, with sellers charging as much as $14.20 per ounce over the spot price. For instance, when purchasing $7 face value of 90% silver (approximately 5 ounces), buyers were shelling out an astounding $196, resulting in a per-ounce cost of nearly $39.20. This was a significant jump from the spot price range of approximately $25 during that period.
The high premiums were indicative of strong demand and limited supply, causing a buying frenzy among people looking to invest in silver as a hedge against economic instability and inflation.
A Drastic Shift: December 2024
Fast forward to December 27, 2024, and the narrative surrounding 90% silver has shifted completely. As the year comes to a close, wholesalers are now selling 90% silver with no premium at all, and some coin shops are marking it down, with prices even going $1 below melt value. This is emblematic of a broader trend of decreasing demand, as many consumers pivot away from 90% silver in favor of pure forms of silver, which are perceived as more valuable or desirable.
To better understand why this dramatic shift has occurred, an interview with Keith from Coin Crew, a coin shop in Michigan, revealed several insights. Keith noted that the current low demand for 90% silver largely stems from two factors:
Increased Inventory: Many people are selling their 90% silver holdings, leading to a surplus in the market. This can be attributed to broader economic pressures, as individuals seek liquidity amid rising living expenses.
Changing Consumer Preferences: There is a noticeable trend, according to Keith, of buyers increasingly opting for pure silver — indicating that the appetite for 90% silver may have changed.
Keith explained that consumers are feeling the financial pinch, leading to more people selling their silver than buying. As he mentioned, “It’s expensive to live anymore,” suggesting that individuals are liquidating assets to cover essential costs.
Pricing Dynamics and Future Outlook
With the current spot price hovering around $29.50, Keith reported pricing his 90% silver at $20 times face value, effectively meaning he's paying about $19 for it when purchasing. This pricing strategy is essential for moving inventory quickly in light of the overwhelming supply coming through the door. Interestingly, while the demand for 90% silver is waning, the demand for pure silver rounds has seen a more moderate drop of around $2 or $3 depending on the seller.
So what does the future hold? Keith believes that if premiums remain low, it'll attract more collectors and investors, potentially reinvigorating demand for silver. Interestingly, he pointed out that higher premiums often generate excitement among consumers — a phenomenon he attributed to Fear of Missing Out (FOMO).
Ultimately, Keith hinted that buying opportunities may present themselves more favorably as prices trend downward, advocating for a strategy that encourages purchasing silver when it’s less in the spotlight, rather than when enthusiasm is at its peak.
Now, as we approach 2025, the market for 90% silver presents a marked contrast to its state less than two years prior. Investors and collectors can now access 90% silver at historically low premiums, making it an appealing prospect for purchases. The oversupply, combined with shifting consumer preferences and economic pressures, has culminated in a market unique in its affordability but potentially fraught with uncertainty regarding resale value in the near future.
As the silver market continues to evolve, long-term collectors will need to keep a watchful eye on both market conditions and consumer behavior as they navigate their investments in precious metals. The hope for an uptick in demand remains, but for the moment, it appears that 90% silver continues to linger in a transitional phase.
Part 1/7:
The Evolution of 90% Silver: A Market Analysis from 2023 to 2024
In the last two years, the landscape of 90% silver — comprising dimes, quarters, and half dollars — has transformed dramatically. Reflecting on where the market stood in May 2023 compared to the end of December 2024 reveals key changes in demand, pricing, and consumer sentiment.
The Hike in Premiums: May 2023
In May 2023, premiums for 90% silver were at record highs, with sellers charging as much as $14.20 per ounce over the spot price. For instance, when purchasing $7 face value of 90% silver (approximately 5 ounces), buyers were shelling out an astounding $196, resulting in a per-ounce cost of nearly $39.20. This was a significant jump from the spot price range of approximately $25 during that period.
Part 2/7:
The high premiums were indicative of strong demand and limited supply, causing a buying frenzy among people looking to invest in silver as a hedge against economic instability and inflation.
A Drastic Shift: December 2024
Fast forward to December 27, 2024, and the narrative surrounding 90% silver has shifted completely. As the year comes to a close, wholesalers are now selling 90% silver with no premium at all, and some coin shops are marking it down, with prices even going $1 below melt value. This is emblematic of a broader trend of decreasing demand, as many consumers pivot away from 90% silver in favor of pure forms of silver, which are perceived as more valuable or desirable.
Conversation with a Coin Shop Owner
Part 3/7:
To better understand why this dramatic shift has occurred, an interview with Keith from Coin Crew, a coin shop in Michigan, revealed several insights. Keith noted that the current low demand for 90% silver largely stems from two factors:
Increased Inventory: Many people are selling their 90% silver holdings, leading to a surplus in the market. This can be attributed to broader economic pressures, as individuals seek liquidity amid rising living expenses.
Changing Consumer Preferences: There is a noticeable trend, according to Keith, of buyers increasingly opting for pure silver — indicating that the appetite for 90% silver may have changed.
Part 4/7:
Keith explained that consumers are feeling the financial pinch, leading to more people selling their silver than buying. As he mentioned, “It’s expensive to live anymore,” suggesting that individuals are liquidating assets to cover essential costs.
Pricing Dynamics and Future Outlook
With the current spot price hovering around $29.50, Keith reported pricing his 90% silver at $20 times face value, effectively meaning he's paying about $19 for it when purchasing. This pricing strategy is essential for moving inventory quickly in light of the overwhelming supply coming through the door. Interestingly, while the demand for 90% silver is waning, the demand for pure silver rounds has seen a more moderate drop of around $2 or $3 depending on the seller.
Part 5/7:
So what does the future hold? Keith believes that if premiums remain low, it'll attract more collectors and investors, potentially reinvigorating demand for silver. Interestingly, he pointed out that higher premiums often generate excitement among consumers — a phenomenon he attributed to Fear of Missing Out (FOMO).
Ultimately, Keith hinted that buying opportunities may present themselves more favorably as prices trend downward, advocating for a strategy that encourages purchasing silver when it’s less in the spotlight, rather than when enthusiasm is at its peak.
Conclusion: The Current Landscape of 90% Silver
Part 6/7:
Now, as we approach 2025, the market for 90% silver presents a marked contrast to its state less than two years prior. Investors and collectors can now access 90% silver at historically low premiums, making it an appealing prospect for purchases. The oversupply, combined with shifting consumer preferences and economic pressures, has culminated in a market unique in its affordability but potentially fraught with uncertainty regarding resale value in the near future.
Part 7/7:
As the silver market continues to evolve, long-term collectors will need to keep a watchful eye on both market conditions and consumer behavior as they navigate their investments in precious metals. The hope for an uptick in demand remains, but for the moment, it appears that 90% silver continues to linger in a transitional phase.