Silver Coin Sales Point to Dollar Worries

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"Silver coins have become the proxy for people’s confidence and worry about the U.S. dollar."

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's gotten 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.

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.

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