Silver Soars On Strong Physical Demand and Bargain Prices

August 18, 2013

proof-silver-eagle3There is no denying that it has been a really tough year for silver investors with silver dropping from $32.23 in January to a yearly low of $18.61 in June.  Is the silver price correction finally over?  The ridiculously low price of silver has resulted in a strong surge of demand worldwide and the price of silver has soared by 23% since the June low.

No one knows if the three year bear market in silver is finally over but investors seem to have made up their minds that the current price of silver is at give away levels.  The World Gold Council reported last week that bar and coin purchases rose to record levels last quarter.  Silver demand in India and China remains very strong and U.S. investors have been buying American Eagle silver bullion coins at a record pace.

Sales by the U.S. Mint of the American Eagle silver bullion coin may hit an all time record this year based on year to date sales data.  The all time record year for sales of the silver bullion coins was in 2011 when the Mint sold almost 40 million one ounce coins.

Sales of the silver bullion coins since 2000 are shown below with sales for 2013 as of July 31st.

American Silver Eagle Bullion Coins
YEAR OUNCES SOLD
2000    9,133,000
2001    8,827,500
2002   10,475,500
2003    9,153,500
2004    9,617,000
2005   8,405,000
2006   10,021,000
2007    9,887,000
2008   19,583,500
2009   28,766,500
2010   34,662,500
2011   39,868,500
2012   33,742,500
2013   29,450,000

TOTAL 261,593,000

With sales of almost 30 million coins through July, annualized sales based on monthly sales to date would result in a record smashing year with investors purchasing over 50 million American Eagle silver bullion coins.  With governments worldwide printing money to prop up a financial system overwhelmed by debt it’s probably a very safe bet that the price of silver will continue to increase in price.

Since 2000 investors have bought over a quarter of a billion silver eagle bullion coins with a current estimated value of over $5.7 billion.  The U.S. Mint American Eagle bullion coin program has been one of the most successful mint products ever produced.

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