Retail investors who hold gold and silver coins are depositing them at coin shops and cashing in on the recent price rise. A barrage of coins was sold to medium and small-scale goldsmiths.

Gold and silver coins, as low as 1 gram, were also being sold at Costco. Even Walmart began selling the metals, making it reach a wider section of people. The move made tons of Americans buy these coins for investments and future profits. To their luck, the XAU/USD and XAG/USD skyrocketed in the charts from 2022 till now. Watcher Guru had reported in 2024 about the gold buying frenzy among Americans at Costco.

If consumers want to sell their gold and silver, the first place they would go is to the coin shops. However, the recent metals market crash has got the owners rethinking their purchase of the precious metals. Gold had topped $5.500 per ounce while silver hit a record high of $126.

All that came crashing early in February as silver plunged 30% in a day to $75, while gold also fell to muddy waters. Therefore, the coin shop owners are now at a loss, hoarding the metals and limiting their purchases.

“If you do this wrong, you run out of capital really fast,” said Tom Spoerl, Manager at Rick’s Olde Gold to Business Insider. He also said coin shops are now swimming in gold and silver coins, and it’s time to rein in the purchases.

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Gold and Silver Hit Coin Shops in Big Numbers Across the US

The recent market volatility has caused serious headaches for these medium-scale enterprises. However, retail investors, who brought the gold and silver coins from the shelf, made profits with their purchases.

If someone had brought a gold or silver coin last year, they would all be in profit. “If you look at a one-year, short-term investment, you still almost tripled your money. The cost average ratio is still splendid,” said Spoerl.