Sales of American Silver Eagles and Perth Mint Silver Rise as Silver Begins its Ascent.
The price of silver has been on the rise since May this year. To date, silver is up nearly 13%, slightly outperforming the Dow this year. Silver sales in 2019 at the U.S. Mint and Perth Mint have been modest, up however, from 2018, and increasing in recent months.
After peaking at $50 an ounce in April 2011, silver began a multi-year bear market that was interrupted briefly in 2013 and mid 2016 when the price of silver broke its downward trend and headed higher before resuming its descent.
Silver is heading higher again!
With negative yielding bonds hitting $17 trillion globally, up from just $12 trillion in May, investors are beginning to rediscover precious metals. The traditional knock against gold and silver is that they do not pay interest. Negative interest rate denominated bonds, not only don’t pay interest, but they charge it! Such bonds are also denominated in currencies that are subject to inflation and are depreciating. Gold and silver, in contrast, have limited supply and while they don’t pay a yield, they don’t charge one either!
The charts below show the pick up in silver sales at the U.S. and Perth Mints in 2019.
American Silver Eagle Sales 1986 -2018
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
Perth Mint Silver Sales
About the Perth Mint:
The Perth Mint, located in Western Australia, is historically known for its gold sales. Australia ranks third in global gold production and has about ten percent of the world’s known gold reserves. Many of Australia’s gold mines are located in Western Australia where the Perth Mint was founded in 1899.
As a full service government mint, the Perth Mint produces legal tender gold and silver coins that are not intended, however, for general circulation. Australia’s general circulation coins are produced by the Royal Australian Mint. The Perth Mint focuses on minting precious metal bullion and collector coins and bars.
The Perth Mint has been refining about 300 and 400 tons of gold and silver each year and also supplies gold and silver blanks to other government mints. As a major producer of silver blanks, the Perth Mint has not experienced any production halts during the past year.
Perth Mint silver sales data: The Perth Mint Blog
This article by BGASC is not, and should not be regarded as, investment advice or as a recommendation regarding any particular course of action.