Why Are 2019 American Silver Eagle Sales Down at the US Mint?
The price of silver is on the rise after years of lower prices, yet U.S. Mint American Silver Eagle Sales, after hitting record numbers from 2013- 2015, have stagnated the past few years.
Demand for physical silver in 2019 is on the rise globally and especially in India and U.S. bullion dealers are reporting overall brisk silver sales. Indian silver imports are surging as the price of silver, despite recent gains, is lagging the price increases of gold, making silver attractive to Indians on a relative basis compared to gold.
India imported over 1,000 tons of silver in July!
American Silver Eagle sales, however, have stagnated despite the favorable sales backdrop.
Here is a chart of sales of American Silver Eagles from 1986 – 2018:
A few factors may be contributing to the lower 2019 American Silver Eagle Sales. Bullion dealers sell back dated American Silver Eagles at prices lower than newly minted ones. This is because The U.S. Mint sells Silver Eagles only to Authorized Purchasers who then onsell the product to bullion dealers. The U.S. Mint charges $2 over the spot price of silver for each coin sold. This effectively means that newly minted one ounce American Silver Eagles start in the sales chain at a $2 premium. Because Authorized Purchasers and bullion dealers don’t work for free, additional premiums are placed on the new coins.
The premium on newly minted American Silver Eagles make prior dated Silver Eagles that often sell closer to the spot price of silver than newly minted ones, more attractive to collectors and investors.
Another reason is that from time to time the U.S. Mint can not satisfy Authorized Purchaser demand for American Silver Eagles. Authorized Purchaser are reporting inability to source 2019 American Silver Eagles. This could be due to the U.S. Mint’s inability to produce American Silver Eagles necessary to meet demand. The U.S. Mint does not create the silver planchets or “blanks” required to mint silver eagles. Instead, the U.S. Mint outsources the production of these silver blanks to private third parties. In recent years, there has been a reduction in the number of larger U.S. private minting companies that may be putting a strain on remaining silver planchet providers to meet U.S. Mint demand.
These “blank” bottlenecks have occurred a few times over the past few years as the U.S. Mint has had to suspend shipments to authorized purchasers due to an inability to keep up with demand. In 2015, the shortage of silver planchets was so severe that the U.S. Mint was unable to produce and deliver American Silver Eagles to Authorized Purchasers for almost the entire month of September.
Despite the American Silver Eagle supply tightness reported by Authorized Purchasers, the U.S. Mint has not yet announced any cessation of minting of 2019 American Silver Eagles.
BGASC has a limited supply of 2019 American Silver Eagles as well as selected back dated American Silver Eagles.
Click below to order your 2019 and back dated American Silver Eagles.
About the American Silver Eagle coin
American Silver Eagle coins are .999 pure silver (ASE’s contain .0007 copper), rather than .9999 silver. The obverse of an American Silver Eagle coin boasts the same design as the obverse of the “Liberty Walking” U.S. $.50 piece that was minted from 1916-1947 of 90% silver and 10% copper. The front of a Liberty Walking Half Dollar and an American Silver Eagle coin features a walking lady liberty depiction designed by Adolph A. Weinman who also worked with Augustus Saint Gaudens, whose design appears on the U.S. gold Double Eagle coin (1907 – 1933) and the contemporary American Gold Eagle coin (1986 – present)
American Silver Eagle sales data from USMINT.GOV
This article by BGASC is not, and should not be regarded as, investment advice or as a recommendation regarding any particular course of action.
This article by BGASC is not, and should not be regarded as, investment advice or as a recommendation regarding any particular course of action.