ALGOMA TOWNSHIP, Mich. — Silver and gold prices have more than doubled since October 2023, sparking a surge in activity at local precious metals dealers as customers buy and sell amid economic uncertainty.
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Precious metals see a dramatic price surge as demand rises
GR Coins on 10 Mile Road has seen an increase in foot traffic as metal prices continue to climb. Gold has risen from $1,800 per ounce in October of 2023 to around $4,000 currently, while silver jumped from $23 per ounce to approximately $50 in the same time period.
Daren Bower
“It’s getting more and more exciting every week. As the prices go up, we’re just seeing a lot of new faces and new people and a lot of renewed interest in gold and silver,” said Ben Soldaat, owner of Grand Rapids Coins.
Soldaat says customers are equally split between buying and selling precious metals.
“Some people have been sitting on it for a while. Want to cash in a profit, and some people want to look for some gains in the market,” he said.
Daren Bower
The buying surge stems from multiple factors, according to Soldaat.
“Fear of some economic woes, you know, some world chaos, and people are looking for a little safety and security, and they traditionally pour into gold and silver,” he said.
Paul Isley, Associate Dean of Economics at Grand Valley State University, explains that gold and silver are rising for different reasons.
“People are moving into gold and silver because they want to be in a place that’s safe, and that results in some growth during inflation,” Isley said.
Daren Bower
Silver faces supply constraints driven by industrial demand.
“There is a supply deficiency in silver, so there’s not as much silver available as people want to buy, and that’s driving up the price,” Isley said.
Silver is heavily used in electronic manufacturing, and mining production hasn’t kept pace with demand. Gold, which has minimal industrial applications, is being driven by institutional buying.
“This is really central banks, particularly China, who’ve been buying up lots and lots of gold, and they’re doing it to reduce their reliance on the US dollar,” Isley said.
Despite the current surge, Isley warns the trend won’t continue indefinitely.
“The likelihood of it pulling back is very high. The question is when, and we need the world to calm down a little bit. We need a little less saber-rattling. We need a little less trade war,” he said.
Daren Bower
For now, dealers like GR Coins continue serving customers interested in precious metals trading.
“Gold’s really the world’s oldest currency, so 3000 years. So, it’s just been instilled in people to turn to and buy, and it’s always been worth something. It’s never gone to zero,” Soldaat said.
Soldaat advises caution when purchasing precious metals, warning that counterfeits and scammers are common. He recommends buying only from reputable dealers.
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