Effective Monday, June 1, 2015, the United States Mint’s American Silver Eagle bullion coins will no longer be subject to allocation. For the first time this year, authorized purchasers will be able to order the coins without limitations.
During periods when demand for bullion coins has exceeded the available supply, the United States Mint has utilized an allocation program to ration available coins amongst their authorized purchasers. Allocation was used for the first time in 2008 when a surge in demand for physical precious metals exhausted the Mint’s supplies of gold and silver bullion coins. After brief suspensions, sales would be resumed on an allocated basis. Allocation was commonplace throughout 2009 and 2010 as production continued to fall short of market demand. The Mint has also used allocation for extended periods over the past two years.
The current allocation program has been in place since November 17, 2014. Leading up to the implementation of allocation, the US Mint had temporarily sold out of Silver Eagle bullion coins. The Mint had cited “tremendous demand” for the coins, following a drop in the market price of silver.
Allocation continued for the duration of sales of the 2014-dated Silver Eagles and also through the start of sales for the 2015-dated coins on January 12, 2015.
For the year to date, sales of American Silver Eagle bullion coins have reached 16,571,000 ounces.
I am so excited with this wonderful news!
Bob, how come your so excited about this??? Not being weird, I just can’t figure out whats so great about this.
So just how many coins do these big dealers buy at one time? It seems they are all over ebay. Do you think a coin with a 200 million mintage can really be a good investment? I just don’t understand what the big issue is here. Even if I won a 200 million lotto I still would not buy many bullion silver eagles.
The only thing I see is maybe more silver will be used making more coins driving silver demand up some. If I won the lottery I would buy maybe 100,000 Eagles at one time. I would not mind having them for the upcoming dollar collapse.
Bob is excited because he knows that silver is real money and people are figuring that out and purchasing it….the price of silver in fiat currency will probably go to the moon at some point in the coming years.
Tony, why would you buy silver coins before gold coins? if you were concerned about currency going to the moon. It seems silver is easy to obtain from mother earth, while gold is much harder to find. Don’t get me wrong, because I like silver eagles, I just don’t understand why investing in eagles would be a good investment.
Wouldn’t 10 oz bars be a better investment at approximate half the premium?
Here’s how it works,
If you are hungry and I make bread and you want a loaf, and all you have is a 1 oz gold coin or a 10 oz bar of silver. I am not going to be able or willing to make change. You will pay 1oz of gold or 10 ozs of silver for how many loafs of bread I decide to give you, ie a sellers market, you cannot eat either metal. I will not be stuck with large denominations of currency in a world that deals in barter, silver dimes, quarters ,halfs, or 1oz silver. You will be forced to get change from the money brokers (Bankers ) at usury rates. Remember Jesus and the money changers at the temple.
As for commissions on precious metals they stay with the coin or bullion and pass along with it. They are there to pay for the overhead. As for gold being harder to get out of the earth, that is just not true. the same processes are used for both and one is often a byproduct of the other. The reason for the difference in price is simply that there is far more silver than gold in existence. ie. Kobe Beef versus supermarket beef. This difference does seem to be directed by the market as evidenced by a constantly changing silver to gold ratio rather than actual quantities of either. Increases in value show that silver normally out preforms gold in a rising market. But what ever form you have precious metals in you are better off than holding a bunch of fiat paper or electronic promises.