2013 Silver Eagle sales to break all previous records and top 45 million oz! - drutter

drutter
JULY 26, 2013

Published on Jul 23, 2013

Silver Eagle coin sales will likely top 45 million ounces this year. The USA produces about 33 million ounces of silver per year. Here's my current understanding of the 1985 Liberty Coin Act.

Data source, US Mint: 

http://www.usmint.gov/about_the_mint/...

Liberty Coin Act (1985): 
http://en.wikisource.org/wiki/Statue_...

Brother John F did a video with similar research recently. Especially relevant from about 3 minutes to about 10 minutes: 
http://youtu.be/YL4wxWAWoLw?t=3m5s

 

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The following comments are from James Anderson, Managing Director of GoldSilver.com:

 

2013 Silver American Eagle coin sales are on a record pace… thus far this year 29,450,000 silver eagle coins have been sold.  At this pace, over 50,000,000 silver eagle coins will be bought by investors this year alone breaking the 2011 record of 39,868,500 silver eagle coins sold.
 
That said, there is a ceiling to how many silver eagle coins can be struck and sold:
 
1) Silver Planchets and Planchet Suppliers are very hard to find for the U.S. Mint, read here => Will the U.S. Mint Run Out of Silver?
 
2) The Coin Modernization Oversight, and Continuity Act of 2010" (H.R. 6162) made a slight but important change to the charge of the U.S. Mint Bullion Program:
 
It used to be that…
 
(e) Notwithstanding any other provision of law, the Secretary shall mint and issue, in quantities sufficient to meet public demand, coins which—
 
In 2010, Congress amended the U.S. Mint's silver eagle supply charge so now the Treasury Secretary makes the call on sufficient demand, not the investing public…
 
(e) Notwithstanding any other provision of law, the Secretary shall mint and issue, in qualities and quantities that the Secretary determines are sufficient to meet public demand, coins which—
 
Bottom Line
 
The U.S. Mint is not set up to meet 5 to 10 times more silver eagle coin investment demand.  
 
The only thing that can fix the current imbalance of silver eagle production capacity versus public investor demand is through either (1) a rising silver price or (2) the U.S. Mint somehow increases its capacity to produce Silver Eagle bullion coins.  
 
My money is literally comprised of silver eagle bullion coins and I await much higher silver prices in the future.    
 

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