Precious Metals Firm Converts Florida Hangar into Silver Mint to Tap US Market

MKS PAMP Group, a renowned precious metals company with refineries in Switzerland and India, has transformed a leased aviation hangar in Florida into a silver mint. This strategic move aims to capitalize on the robust investment demand in North America, the company announced on Thursday.

The group, which also operates a precious metals trading arm, a bullion distributor, and an online retailer, is responding to significant shifts in the global silver investment market. While Germany and India saw substantial declines in demand for silver bars and coins last year, the United States market remained relatively resilient.

“Sales of PAMP minted products have remained strong compared to other brands’ products in the U.S. and the Middle East regions,” the family-owned group told Reuters.

The Florida facility is equipped to produce over 20 million troy ounces of silver products annually, including 1-ounce silver rounds and 10-ounce bars, according to MKS PAMP Group. These rounds are privately minted, coin-shaped pieces of silver, catering to both investment and industrial uses.

Despite silver spot prices rising by 27% in 2024, after hitting an 11-year high on May 20 amid rallies in gold and copper markets, global physical investment in silver bars and coins—which constitutes one-fifth of total demand for the metal—is expected to decline further following a 28% slump in 2023.

The downturn in investment demand was particularly severe in Germany, where sales plummeted by 73% due to an increase in the Value Added Tax on some silver products. India’s market also shrank by 38%. In contrast, the U.S. market saw a more modest decline of 13% but maintained historically high demand levels.

“Despite the year-on-year fall, the U.S. remained a crucial outlet for some mints and refiners, providing a market for investment products that would typically be purchased in Germany,” stated a report by Metals Focus, prepared for the Silver Institute, in April.