Coin Shops Limit Precious Metal Purchases Amid Volatility

Refineries are backlogged, forcing local coin shops to adjust their buying strategies.

Published on Feb. 8, 2026

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Recent volatility in the precious metals market, with gold prices topping $5,300 per ounce and silver reaching nearly $120 per ounce before sharp declines, is causing headaches for local coin shops that play an essential role in the circulation of gold and silver. These shops are finding themselves in an uncomfortable position, with a huge influx of people selling their metals but refineries experiencing major backlogs, forcing the coin shops to limit how much they will buy from individual customers in a day.

Why it matters

Local coin shops provide a reliable way for individuals to sell their gold and silver, but the recent market volatility has disrupted the normal flow of physical precious metals. This is impacting the coin shops' ability to serve their customers and maintain their own financial stability.

The details

As the precious metals market experienced record gains and losses, local coin shops like University Coin & Jewelry in Madison, Wisconsin, were still doing deals, but found themselves quickly losing money as spot prices changed rapidly. Refineries like Precious Metal Refining Services in Chicago have also stopped buying scrap silver, creating a backlog that is cutting into the cash flow of the coin shops. To adjust, many coin shops have started instituting limits on how much they will buy from a single person in a day, allowing them to serve more customers while not overextending their balance sheets.

  • In October, the price of silver crossed $50 per ounce, sparking a frenzy of people trading in old silverware and other items.
  • At the end of January, the price of gold topped $5,300 per ounce and silver reached nearly $120 per ounce before tumbling sharply.

The players

University Coin & Jewelry

A coin shop located in Madison, Wisconsin that has been dealing with the recent precious metals market volatility.

Precious Metal Refining Services

A precious metals refinery in Chicago that has stopped buying scrap silver due to the market conditions.

HSBC

A global financial services company with an analyst, James Steel, who commented on the damage the precious metals market volatility has caused.

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What they’re saying

“These price moves have done a lot of damage all across the line.”

— James Steel, Precious Metals Analyst (HSBC)

“By the time I wrote his check, silver was already down $3.50 from the time he walked in the door.”

— Tim Heuer, Owner (University Coin & Jewelry)

“This entire crazy silver move that has happened, we have been sitting on the sidelines.”

— Jarret Niesse, President (Precious Metal Refining Services)

What’s next

As the precious metals market continues to experience volatility, it remains to be seen how local coin shops will further adjust their buying strategies to balance serving customers and maintaining their own financial stability.

The takeaway

The recent precious metals market volatility has disrupted the normal flow of physical gold and silver, forcing local coin shops to institute buying limits and creating backlogs at refineries. This highlights the essential role these coin shops play in the circulation of precious metals and the challenges they face in navigating rapid price swings.