Sales of American Eagle silver coins in January are en route to setting a record, according to U.S. Mint data. In 2010, silver futures soared 84 percent. Earlier this month the commodity touched its highest value in 30 years when striking $31.275 per troy ounce on January 3. Barry James of James Investment Research in Xenia says that demonstrates a fall is imminent.
"The coin sales are an indication of the level of interest in silver," the manager of $2.4 billion told Bloomberg. "It's too popular. When the crowd discovers a good deal, it’s usually long over."
The past 24 months have seen silver purchases pick up due to a shaky U.S. dollar and the sovereign-debt crisis in European banks.
"After a period of outperformance from silver, we would be taking a little off the table," he said. "It's more likely that silver will have a correction in price rather than a surge."
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