There is just one problem.

When silver goes on sale, much of the silver available for sale suddenly disappears.

Dealers who were advertising substantial inventories at higher prices begin holding back their stock. Long-term collectors decide they would rather wait for a recovery. Investors who accumulated silver over many years see little reason to liquidate at substantially reduced prices.

The silver hasn’t vanished. Its owners have simply decided they aren’t selling. And that creates an interesting situation for buyers who have been patiently waiting for lower prices.

A Remarkable Observation at the Toronto Coin Expo

At the recent Toronto Coin Expo, we noticed something particularly interesting.

Two categories of collectibles appeared conspicuously absent from dealers’ showcases:

• silver bullion and
• Newfoundland $2 gold coins.

Despite the significant decline in precious metals prices, silver bullion was surprisingly difficult to find. Equally remarkable, we did not see a single Newfoundland $2 gold coin offered on the show floor.

Yet our upcoming marathon, the Fall Auction, features an extraordinary selection of both.

We have over 1,000 troy ounces of silver, offered in numerous forms, along with a complete six-coin set of Newfoundland $2 gold pieces, including the elusive 1880 issue.

To put the rarity of the gold offering into perspective, we are fortunate to handle an 1880 Newfoundland $2 gold coin perhaps once every two or three years. Having an entire set available in one auction is an exceptional opportunity.

But it is the silver market that deserves particular attention.

What Really Happened to Silver in 2026?

The silver market has experienced one of the most extraordinary years in its history.

In January 2026, silver reached approximately $164 Canadian per troy ounce, a level that would have seemed almost unimaginable just a few years earlier. That spectacular rise triggered an equally remarkable response.

Suddenly, silver that had been sitting untouched for decades began finding its way into the marketplace. Grandmother’s sterling silver tea service, tucked away in a cabinet for 50 years, was worth considerably more than anyone remembered. Old silver flatware, broken jewelry, inherited collections, bags of Canadian and Newfoundland silver coins, and privately accumulated bullion became attractive candidates for sale. Even dedicated silver stackers, many of whom had spent decades accumulating ounces, began taking profits.

Around the world, refiners and precious metals dealers experienced renewed selling interest as owners sought to capitalize on historically high prices. The result was an important increase in the availability of recycled silver. And this is where the silver story becomes particularly interesting.

Did High Prices Create Their Own Temporary Supply Problem?

One of the basic principles of economics is that high prices encourage additional supply. Silver is no exception.

Unlike many commodities that are consumed immediately, a substantial amount of silver exists above ground in coins, bars, jewellery, silverware, and other products.

When prices rise dramatically, some of that metal returns to the marketplace.

The Silver Institute projected that global silver recycling would exceed 200 million ounces in 2026, reflecting the powerful incentive created by elevated prices.

We believe the extraordinary price increases early in the year encouraged significant selling from private holdings, potentially bringing forward metal that otherwise might have remained off the market for years. That additional supply can temporarily ease shortages and put pressure on prices.

It is entirely possible that the market will need considerable time to absorb some of the metal released during this historic period. But a temporary increase in recycled supply is not the same thing as a permanent solution to silver’s long-term supply challenges.

The Paper Silver Market: Why Prices Can Collapse So Quickly

One of the most frustrating aspects of the silver market for physical investors is the enormous influence of futures trading. The price of silver is not determined solely by people buying and selling physical bars and coins.

A substantial amount of trading takes place through futures contracts, where participants can control large quantities of silver by depositing only a fraction of the contract’s total value.

This is called leverage.

For example, a standard COMEX silver futures contract represents 5,000 troy ounces. At $100 per ounce, that is $500,000 worth of silver. Yet a trader may be required to deposit only a portion of that amount as collateral.

When exchanges increase margin requirements, traders suddenly need to provide additional money to maintain their positions.

Those unable or unwilling to provide the extra cash must reduce or close their positions. When many leveraged traders are forced to sell simultaneously, the result can be a dramatic price collapse. That is precisely the kind of mechanism that contributed to the extraordinary silver selloff in early 2026.

CME Group, which operates the COMEX futures exchange, increased margin requirements amid extreme volatility. The resulting pressure on leveraged positions contributed to a rapid decline in prices.

It is important to understand that these transactions do not necessarily involve millions of physical ounces suddenly arriving on the market. Often, what is being sold is a financial contract representing silver.

Nevertheless, the selling can drive down the quoted market price of physical silver worldwide. In other words, the paper market can experience a selling panic even when physical silver owners have little interest in selling.

What About the Big Banks and Silver Market Manipulation?

For years, precious metals investors have questioned the influence of large financial institutions on silver prices.

Those concerns are not entirely without historical justification.

In 2020, JPMorgan Chase agreed to pay approximately US$920 million to resolve US investigations involving manipulative trading practices, including spoofing, in precious metals and Treasury markets.

Spoofing involves placing orders that traders intend to cancel, creating misleading impressions of market supply and demand.

That was a documented case of market misconduct.

However, it would be incorrect to conclude that JPMorgan was responsible for the 2026 silver decline simply because futures margins increased. Margin requirements are established by exchanges and clearinghouses, not unilaterally by individual banks.

What we can say is that the combination of leveraged speculation, changing margin requirements, automated trading, and forced liquidations can produce price movements far more violent than changes in the underlying physical silver market would suggest.

For the long-term investor, understanding that distinction is essential.

The Fundamental Silver Story Has Not Disappeared

Despite the recent price collapse, we believe the long-term case for silver remains compelling. Silver is unusual because it is both a precious metal and an essential industrial commodity. Gold is primarily accumulated for investment, jewellery, and monetary reserves. Silver, by contrast, is also used extensively in modern manufacturing. Its exceptional electrical conductivity makes it valuable in electronics, electrical infrastructure, solar technology, automotive applications, and a wide range of industrial products.

The Silver Institute’s 2026 outlook projected approximately 820 million ounces of annual mine production against total silver demand substantially exceeding that figure. Recycling helps bridge the gap, but even after accounting for recycled supply, the Institute forecast a sixth consecutive annual market deficit.

That distinction is important.

The world is not simply running out of silver tomorrow. Rather, demand has repeatedly exceeded newly available supply, requiring the market to draw upon existing inventories. Continued deficits can create long-term pressure, particularly if investment demand strengthens again.

Of course, higher prices also encourage manufacturers to use less silver, substitute alternative materials where possible, and improve recycling. These factors could moderate future demand.

Nevertheless, we believe silver’s combination of industrial importance, monetary appeal, and constrained mine supply remains attractive over the longer term.

Why Increasing Mine Production Isn’t Easy

Another factor often overlooked is how silver is actually mined. Much of the world’s silver is produced as a by-product of mining other metals, including copper, lead, zinc, and gold. This means silver production cannot always respond quickly to rising prices.

A copper mining company does not necessarily increase production simply because silver becomes more valuable. Its decisions depend primarily on the economics of its main product. Developing a new mine can also require years of exploration, permitting, financing, and construction. As a result, sustained increases in silver demand cannot always be met by an immediate increase in mine production.

That is one reason we continue to view the long-term supply picture favourably.

The Opportunity Most Investors Overlook

Investors often say they wish they had purchased more silver when prices were lower. But when those lower prices finally arrive, fear frequently replaces enthusiasm.

At $150 an ounce, silver attracts headlines and excited buyers.

At substantially lower prices, many of those same investors begin worrying that prices could fall further.

That is human nature.

Yet experienced collectors and investors understand that attempting to identify the exact bottom of any market is extraordinarily difficult.

A more practical strategy for long-term buyers may be to accumulate gradually during periods of weakness, rather than waiting for an elusive perfect entry point. There is no guarantee silver cannot decline further. It certainly can, and the market may remain volatile for some time.

But for those who believe in silver’s long-term fundamentals, lower prices can provide an opportunity to acquire more ounces for the same investment.

The important question is not simply how low silver might go. It is whether you will be able to acquire the silver you want when that price arrives.

Over 1,000 Ounces of Silver in Our Fall Marathon Auction

That brings us to our upcoming Fall Marathon Auction.

While some dealers and private investors are reluctant to sell at today’s reduced prices, East Coast Coins has assembled an exceptional selection of physical silver for bidders.

Our auction includes:

• Canadian Silver Maple Leafs and other popular bullion coins.
• One-ounce, five-ounce, ten-ounce, and kilogram .999 fine silver products.
• Royal Canadian Mint collector issues, including excellent Christmas gift ideas.
• Bulk lots of Canadian and Newfoundland silver coinage.
• Bags of $100 face value Newfoundland silver coins, containing approximately 70 troy ounces of silver.
• Bags of $100 face value Canadian silver coins, containing approximately 60 troy ounces of silver.
• Numerous additional silver coins and collectibles for both beginning and experienced buyers.

For those interested in accumulating silver by the ounce, the bulk lots deserve particular attention.

For collectors, our extensive selection offers opportunities to acquire pieces that may become more difficult to locate as the market recovers.

And for investors who have been waiting for a correction, the timing of this auction may be especially appealing.

No Buyer’s Premium — More Money Toward Your Silver

There is another significant advantage to bidding with East Coast Coins. We remain the only collectibles auction house in Canada, to our knowledge, that charges no buyer’s premium. Many auction houses add an additional 15% to 20% to the winning bid.

Consider a $1,000 silver purchase.

At an auction charging a 20% buyer’s premium, the buyer pays $1,200 before applicable taxes and shipping.

At East Coast Coins, that same $1,000 winning bid remains $1,000 before any applicable taxes and shipping.

That difference represents additional money that could be invested in silver rather than auction fees.

Furthermore, qualifying .999 fine silver bullion is generally exempt from GST/HST in Canada, providing another advantage for bullion investors.

A Rare Opportunity in Newfoundland Gold

Although silver is the focus of this article, we would be remiss not to mention another extraordinary highlight.

Our Fall Marathon Auction includes a complete set of Newfoundland $2 gold coins, including the extremely desirable 1880 issue.

At the recent Toronto Coin Expo, we did not encounter a single Newfoundland $2 gold coin available on the floor.

Yet bidders in our auction will have an opportunity to compete for the complete series.

Newfoundland gold has long enjoyed a special place in Canadian numismatics, combining low original mintages, historical significance, and strong collector interest.

We expect spirited bidding for these exceptional coins.

Our Outlook: Patience, Perspective, and Opportunity

We do not pretend to know where silver prices will be next week, next month, or even six months from now.

The extraordinary events of 2026 have demonstrated just how unpredictable precious metals markets can be.

It may take time for the market to absorb the silver that returned to circulation during the historic price surge. Industrial substitution, economic conditions, investment demand, and global monetary policy will all influence what happens next.

But our long-term view remains positive.

Silver is a finite resource with substantial industrial applications, enduring investment appeal, and a history of supply deficits.

We believe those fundamentals deserve more attention than the latest wave of speculative selling.

And while many sellers have decided to wait for higher prices before offering their holdings, our auction provides an immediate opportunity to acquire a substantial quantity of physical silver.

Everyone says they want to buy silver when it goes on sale.

Well, silver has gone on sale.

And unlike the inventories that have mysteriously disappeared from so many dealers’ showcases, ours is available for bidding.

EAST COAST COINS, AUCTIONS & COLLECTABLES — FALL MARATHON AUCTION

Bidding opens October 30 and closes November 9, 2026.

Over 1,200 lots featuring silver bullion, Newfoundland gold, rare coins, banknotes, stamps, hockey cards, watches, and much more.

No buyer’s premium. No unnecessary fees. Just exceptional collectibles and precious metals offered to the highest bidders.

East Coast Coins,  Auctions & Collectibles

Serving collectors and investors for over 30 years.