American Eagle Silver Bullion Coin Demand Remains Strong – 2014 Should Shatter Previous Sales Record
The American Eagle silver bullion coins produced by the US Mint remain extremely popular with retail investors. During 2013 silver bullion coin sales hit a record high of almost 43 million ounces and would have been even higher if the US Mint had been able to keep up with demand. The US Mint actually ran out of silver bullion coins late in the year and suspended sales for most of December and part of January 2014.
Sales of silver bullion coins exploded in the wake of the financial crisis during 2008 when investors began to seriously question of value of paper money which could be manufacturing at will and in unlimited quantity by a profligate government.
Prior to the financial crisis yearly sales of the silver bullion coin ran between eight and ten million ounces. Since 2010 yearly sales exploded to over 30 million ounces per year and during 2013 exceeded 40 million ounces.
According to the US Mint May sales of the silver bullion coin totaled 3,988,500 ounces up by almost 12% from the previous month and up by 15% from the comparable prior year month.
Sales of the silver bullion coins are shown below by year with 2014 sales through May 31st.
The American Eagle silver bullion coins cannot be purchased by individuals directly from the U.S Mint. The coins are sold only to the Mint's network of authorized purchasers who buy the coins in bulk based on the market value of silver and a markup by the U.S. Mint. The authorized purchasers sell the silver coins to coin dealers, other bullion dealers and the public. The Mint's rationale for using authorized purchasers is that this method makes the coins widely available to the public with reasonable transaction costs.
If the US Mint is able to keep up with demand, 2014 should be another record breaking year for sales of the American Eagle silver bullion coins. If the pace of silver coin sales continues at the current rate sales for 2014 could easily top 50 million ounces, an increase of about 16% from last year.