Silver coin sales have been on a tear in recent months and can be used as an economic indicator to show a lack of confidence in the U.S. monetary policy, said Nicholas Colas, chief market strategist at ConvergEx.
“Silver coins have become the proxy for people’s confidence and worry about the U.S. dollar. Gold'sgotten so expensive that folks can’t afford it, and the mint is minting fewer fractional gold coins, so many people have migrated to silver,” Colas told CNBC.
Colas said silver is also used as a hedge against inflation, as people continue to worry about the state of the dollar and the incremental quantitative easing.
Scorecard—What He Said:
- Colas' Previous Appearance on CNBC (Dec. 7, 2010)
More on the Metals Market:
- Why Investors Should Still Own Gold: Strategist
- Kass: Gold Slides to $1050 in 2011
- Cramer: Did You Overlook This Gold Play?
CNBC Data Pages:
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No immediate information was available for Colas or his firm.