April 18, 2024

2010 Proof Silver Eagle Sales Begin

November 19, 2010 by Leave a Comment

For the first time in more than two years, Proof Silver Eagles are available for purchase from the United States Mint. In recent years, the availability of the collector coins has been prevented by the high demand for physical precious metals.

The US Mint produces American Silver Eagles for both precious metals investors and collectors. The bullion version of the coin is distributed through a network of authorized purchasers, who are able to purchase the coins based on the market price of silver plus a specified premium (currently $2.00 per coin). The authorized purchasers then resell the coins to other bullion dealers and the public, as well as create a two way market for the coins to ensure liquidity. By law the US Mint is required to issue the bullion coins in quantities needed to meet public demand.

The collector versions of the coin are sold by the US Mint directly to the public. Traditionally, a proof version of the coin has been offered to collectors each year. For various occasions, collectible Silver Eagles have also been incorporated into various numismatic products. More recently, a collectible uncirculated version of the coin was offered. Silver Eagles produced for collectors have been offered at fixed prices, generally reflecting a large premium above the value of the silver content. There is no legal requirement for the US Mint to produce or issue collector coins.

Proof Silver Eagles were last available in August 2008. After that point sales of the 2008-dated coins were suspended, never to be resumed. In the following year, the offering was long delayed and eventually canceled. Due to high demand for the bullion version of the coin and the US Mint’s legal requirement to meet public demand, during this period silver planchet supplies were used exclusively to strike bullion coins for this extended period of time.

This year, the US Mint managed to reconcile their legal obligation to precious metals investors and their traditional obligation to coin collectors and sell a record number of bullion coins and offer the collector coins.

The 2010 Proof Silver Eagles are priced at $45.95 each. A limit of 100 coins per household has been imposed by the US Mint for at least the first week of release. Order fulfillment is expected to begin by December 1, 2010.

Filed Under: Silver, US Mint Tagged With: , , , ,

Will the US Mint Resume Silver Eagle Rationing?

November 18, 2010 by Leave a Comment

During the course of the past several years, the United States Mint has implemented a rationing program for their popular American Silver Eagle bullion coins at times when demand has exceeded the available supply. Will a recent surge in demand for silver bullion cause them to reinstate the program?

The euphemistically titled “allocation program” was last implemented for Silver Eagles in December 2009. This followed a brief sales suspension during the last few days of November. At the time, the price of silver had been moving steadily higher, supporting increasing interest in precious metals investment. The US Mint experienced a slow month of silver bullion sales in September, followed by increasing demand in October and November leading up to the suspension and ensuing allocation program, which remained in place until this September.

During the past few months, the situation is shaping up to be eerily similar. In September 2010, the US Mint sold 1,880,000 ounces of silver bullion, which represented the lowest monthly sales of the year. In October, sales rebounded strongly to 3,150,000 ounces. For the current month date, sales have already exceeded this amount, measuring 3,175,000.

With the month a little more than half over, the total seems poised to set a new monthly sales record. The current record is 3,636,500 ounces achieved earlier this year in May. Annual sales are already in record territory.

Bullion sales have been rising against a backdrop of steadily rising silver prices. Since the end of September, the silver price has increased from $22.07 to $26.57, representing a gain of more than 20% in less than two months. Reports of tightening supplies or shortages for other silver bullion have also been reported. This may explain the recent move towards the higher premium bullion coins.

The American Silver Eagle is currently the only silver bullion product offered by the United States Mint. A second program known as the America the Beautiful Silver bullion coins has been scheduled to launch this year, but a release date has not yet been specified.

Filed Under: Featured, Silver Tagged With: , , , ,

US Mint Mass Email Causes Mass Confusion

November 12, 2010 by Leave a Comment

Collectors have been eagerly awaiting the release of the 2010 Proof Silver Eagle. Imagine their surprise yesterday when they received a mass email notification from the United States Mint that the product was “sold out” and their orders were canceled one week before the anticipated release date.

The Proof Silver Eagle is one of the US Mint’s most popular products. Featuring Adolph A. Weinman’s classic “Walking Liberty” design on one ounce of .999 fine silver struck with a proof finish, it makes an exceptionally beautiful item for collecting or gift giving. This did not stop the Mint from canceling the offering last year due to high demand for bullion coins.

This year’s offering was confirmed by the US Mint in early October when it was announced that the 2010 Proof Silver Eagle would go on sale November 19, 2010. The price would be $45.95 and a household limit of 100 would be imposed.

The email notification received yesterday by customers who entered orders through the US Mint’s subscription program was as follows:

Greetings from the United States Mint.
Thank you for ordering from the United States Mint.
We regret to inform you that the item(s) listed below
are currently sold out. A customer service representative
will be happy to assist you in finding an alternative item.

Order #
Sold To
Ship To

Item: PS1 Qty:
2010 AE SILVER PRF 1 OZ

This is a system generated e-mail. Please do not reply.
If you have questions, please visit the Help page at
http://catalog.usmint.gov or call us at 1-800-USA-MINT.

The mass emailing set off a torrent of calls to the US Mint’s toll free number. Many feared a repeat of the situation last year where the offering had been canceled due to bullion demand. After all, this year’s American Silver Eagle bullion coins are already in record territory for annual sales. The rising price of silver also seemed to have potential to impact the offering, which was priced more than a month ago.

Callers were told that the emails were sent in error and the subscriptions would be reinstated. It wasn’t until later that evening that a second email was sent to customers officially confirming that the offering was not canceled.

A mass emailing falsely announcing a product cancellation one week before the release date is certainly not a great way for the US Mint to ingratiate themselves with their customers– especially considering the many missteps of the recent past.

Filed Under: Silver, US Mint Tagged With: , ,

American Silver Eagle Bullion Sales Break Record

November 5, 2010 by 1 Comment

Sales of the United States Mint’s American Silver Eagle have just moved into record territory. The most recent available sales figures show a total of 28,885,500 of the one ounce coins sold for the year to date. This edges out the annual record sales achieved in the previous year when 28,766,500 coins were sold.

With nearly two months left in the year, the final total for 2010 seems likely to beat out the old record by a comfortable margin. During the first ten months, average monthly sales have been 2,863,050, suggesting full year sales of around 34 million.

2010 American Silver Eagle Sales (through 11/5/2010)

January 3,592,500
February 2,050,000
March 3,381,000
April 2,507,500
May 3,636,500
June 3,001,000
July 2,981,000
August 2,451,000
September 1,880,000
October 3,150,000
November 255,000
December –
Total 28,885,500

On an historical basis, sales levels for the American Silver Eagle have been immense during the past three years. This has frequently resulted in the US Mint suspending or rationing the available supply of coins. It has also resulted in the cancellation of certain collector versions of the coin.

As an interesting point of reference, the lowest annual sales total for the bullion offering was 3,466,000, achieved in 1996. This year monthly sales exceeded this amount on two separate occasions.

Filed Under: Featured, Silver Tagged With: , , ,

US Mint Changes Rules for Authorized Purchasers

October 20, 2010 by Leave a Comment

The United States Mint recently revised the requirements to become an Authorized Purchaser for their American Eagle Gold and Silver bullion programs. Since the start of the program, the US Mint has used an authorized purchaser network to distribute the coins to the public.

These Authorized Purchasers are the only ones allowed to buy bullion coins directly from the United States Mint. They purchase the bullion coins based on the market prices of the metals plus an established premium. The premiums are currently $2 for Silver Eagles and 3%, 5%, 7%, and 9% for one ounce, one-half ounce, one-quarter ounce, and one-tenth ounce Gold Eagles. Authorized purchasers are also required to create a two way market for the coins to ensure liquidity for US Mint bullion coin investors.

There are currently eight authorized purchasers for gold and twelve for silver.

Changes to the requirements recently made effective included modifications to the sections “Purpose”, “Marketing Support”, “Experienced Market Maker”, and “Tangible Net Worth”. The most significant change was the addition of a new section “Right to Temporarily Refrain from the Review of New Applications.”

The new section states the following (emphasis added):

The United States Mint reserves the right to temporarily refrain from the review of new AP applications during periods in which the allocation of any bullion product is required. The temporary refrain period will continue until a minimum of nine months after all allocations have been lifted, but no more than one year after all allocations have been lifted.

For more than two years the US Mint has continually resorted to their allocation program (rationing) in times when gold and silver bullion demand has spiked. From 2008 to 2010, Silver Eagles have spent more time under allocation than not, with the program implemented February 2008, lifted in June 2009, reinstated in December 2009, and lifted in September 2010.

Under the newly established rules, the US Mint can refrain from considering applications of potential new authorized purchasers until at least June 2011. During this time, if another demand spike necessitates the use of the allocation program, the clock starts again, but only after allocation has been lifted. Given the pattern of the past two years, the period of refrain could last indefinitely.

By law the US Mint is required to supply American Gold and Silver Eagles in quantities sufficient to meet public demand. In reality, the supply of coins is limited based on the number of planchets the US Mint can obtain from foreign suppliers, and distribution is limited based on the small number of authorized purchasers and the new hurdles placed before potential applicants.


Filed Under: Featured, Gold, Silver, US Mint Tagged With: , , ,

2010 Proof Silver Eagles to Fly November 19

October 6, 2010 by Leave a Comment

The United States Mint has announced that the 2010 Proof Silver Eagle will be available for collectors this year. The news comes one month after the official conclusion of the US Mint’s long running rationing program, which had been in place due to high demand for bullion coins.

By law, the US Mint is required to produce American Gold and Silver Eagle bullion coins in quantities sufficient to meet public demand. Following their legal team’s interpretation, in times when bullion demand has exceeded planchet supply, the US Mint has sourced all incoming planchets to the production of bullion coins and foregone the production of collector coins.

This interpretation of their legal responsibilities led to the cancellation of the 2009 Proof Silver Eagle and the lengthy delay and uncertainty surrounding this year’s offering.

The 2010 Proof Silver Eagles will be available for ordering on November 19, with fulfillment of orders beginning on December 1. Pricing has been established at $45.95 per coin. This represents a hefty increase from the last available proof Silver Eagles, which were priced at $31.95 back in 2008. A household ordering limit has been established at 100 units.

The US Mint is not saying just how many coins will be available for collectors, as it will remain contingent on the level of bullion coin demand. If precious metals investors manage to tone it down for a few months, just how many 2010 Proof Silver Eagles will be produced?

A possible clue lies in the US Mint’s original request to Congress when they were attempting to amend the law to allow proof coins to be struck even while bullion demand remained unmet. They had requested authority to use up to 2 million incoming planchets to strike Proof Silver Eagles each year. This would top the highest mintage for a proof issue of the series, currently held by the 1986 Proof Silver Eagle with a final mintage of 1,446,778. The legislation eventually introduced in Congress left the determination up to the Secretary of the Treasury.

Filed Under: Silver, US Mint Tagged With: , , ,

Silver Eagle Bullion Coin Premiums Up Again

October 1, 2010 by Leave a Comment

The US Mint has ratcheted up premiums for their popular American Silver Eagle bullion coins once again. Premiums charged to Authorized Purchasers were increased from $1.50 to $2.00 per coin. The increase was made effective today.

Authorized purchasers are the only ones allowed to purchase bullion coins directly from the US Mint. The increased premium level, will no doubt filter down through the distribution channels and result in higher prices paid for silver bullion at a time when spot prices continue to soar.

During the past two years, premiums have been raised on two other occasions. These were relatively modest adjustments compared to the current 50 cent per coin increase. On October 14, 2008, premiums were increased from $1.25 per coin to $1.40 per coin. Then on January 27, 2009, premiums were increased from $1.40 to $1.50 per coin.

The increase in premiums for silver bullion coins comes just a few days after the US Mint announced the depletion of their 24 karat gold bullion offering. The latest available information suggests that the coins will not be offered for the remainder of the year, with the start of sales for 2011-dated coins still undetermined.

Filed Under: Silver, US Mint Tagged With: , ,

Gold and Silver Eagle Rationing Ends… For Now

September 13, 2010 by Leave a Comment

The United States Mint’s “on again, off again” rationing of American Gold and Silver Eagle bullion coins is “off again”.

For more than two years, increased levels of demand for gold and silver bullion coins have caused problems for the United States Mint. Under current law, they are required to produce Gold and Silver Eagle bullion coins in quantities sufficient to meet public demand. When they have been unable to meet full demand, they have defaulted to meeting as much demand as possible.

In February 2008, following a multi-week suspension of Silver Eagles, the US Mint imposed their “allocation program” for the first time, which rationed the supply of bullion coins amongst authorized purchasers. At the time their memo stated, “The unprecedented demand for American Eagle Silver Bullion Coins necessitates our allocating these coins on a weekly basis until we are able to meet demand.”

Despite making some progress with the overall number of gold and silver bullion coins available, the US Mint has resorted to this allocation time and time again, in response to increased bullion demand. When demand subsides, the program is lifted, only to be reinstated weeks or months later when demand reemerges.

Last year rationing was ended for both gold and silver bullion coins in June 2009 with little fanfare. In the ensuing months, the US Mint presumably produced the bullion coins in quantities necessary to meet full demand. However, as had happened before, fresh waves of demand upset the delicate balance.

In late November 2009, sales of both Gold and Silver Eagles were briefly suspended and resumed under the familiar allocation program. Rationing eventually ended for Gold Eagle bullion coins in March 2010, and for Silver Eagle bullion coins early this month.

Will the latest “end of rationing” finally stick? Or will events once again transpire to reignite bullion demand and bring back the rationing program yet again?

Filed Under: Gold, Silver, US Mint Tagged With: , , , ,

Proof Silver Eagles Possible… With Change in Law

July 27, 2010 by 1 Comment

There might be a chance for proof versions of the American Silver Eagle after all.

Shortly after my post on the dimming prospects of the 2010 Proof Silver Eagle, US Mint Director Edmund Moy delivered testimony to the Subcommittee on Domestic Monetary Policy and Technology on “The State of U.S. Coins and Currency”. Within the testimony, Director Moy mentioned that the subcommittee was considering amending the existing law to allow the Mint to produce collectible uncirculated and proof versions of the Silver Eagle, even if full demand for bullion coins was not being met.

It was revealed that the US Mint has already, in fact, provided drafting assistance for the amendment to the law. If it could be enacted soon, the Mint could begin production of Proof Silver Eagles in September at a rate of 200,000 coins per month. This would allow total production of 830,000 coins before the end of the year.

Frankly, after two years of stalled production, a change in law is not really the solution I was expecting. Two years should have provided the US Mint with sufficient time to either find additional precious metals blank suppliers, or set up their own production of precious metals blanks in-house. During the course of the subcommittee meeting, the US Mint Director was questioned on these two options and did not provide satisfactory responses. If the US Mint sought to change the law to legitimize the fact that they cannot satisfy bullion demand, then they could have taken this step two years ago.

As it stands, the US Mint claims that there is plenty of gold, silver, and platinum in raw material form, they just can not get it fabricated into planchets fast enough. This is another tough statement to accept without scrutiny. As covered in prior posts, other world mints quickly managed to adapt to the increased level of demand for precious metals. The US Mint has apparently been staring down the same bottleneck for two years.

During the course of the questioning, Director Moy was asked about the possibility of producing back dated 2009 Proof Silver Eagles, to fill the gap left by last year’s cancellation. He stated that this was not allowed.

Filed Under: Silver, US Mint Tagged With: , ,

2010 Proof Silver Eagles at Risk of Cancellation

July 16, 2010 by 3 Comments

One of the consequences of the record pace of United States Mint silver bullion coins might be the cancellation of the popular Proof American Silver Eagle for the second year running.

The Proof Silver Eagles have been issued each year from 1986 to 2008. During this period, the coins have sold between 372,168 and 1,092,477 coins per year and had firmly established itself as one of the United States Mint’s most popular products.

2009 Proof Silver Eagle (not issued)

The offering was abruptly canceled for 2009 to the dismay of many collectors. The US Mint explained that it was legally required to produce the bullion version of the American Silver Eagle in quantities sufficient to meet public demand. They were not under any legal requirement to produce the collectible proof or uncirculated versions of the coins. Because demand for silver bullion coins apparently outweighed production, the US Mint sourced all incoming blank supplies towards the production of bullion coins.

The announcement of last year’s cancellation came by way of a press release issued October 6, 2009, which highlighted the two collectible precious metals offerings that would be available in 2009, before enumerating the long list of products which were canceled. As if in validation of the high demand for US Mint bullion Silver Eagles, in late November the US Mint was forced to temporarily suspended sales of bullion coins after inventories were depleted.

During 2010 to date, Silver Eagle bullion coin sales are running at a higher pace than the prior year. An average of 3,028,083 ounces have been sold per month this year, compared to an average of 2,397,208 ounces per month last year. Demand shows no signs of abating, as investors continue to buy every silver bullion coin the US Mint can produce.

The US Mint recently unveiled a numismatic product release schedule for the remainder of 2010. The 2010 Proof Silver Eagle and most other precious metal products were conspicuously listed as “TBD.” The Mint is still preserving some hope that these coins may be issued, but the situation looks rather bleak.

Why can’t the United States Mint produce bullion coins in sufficient numbers along with the traditionally issued collectible precious metals products? Is it the result of the onerous requirement that precious metals must be sourced from newly mined domestic sources? Is there a lack of manufacturing capacity? Or is it a case of managerial incompetence?

The same excuse of blaming “unprecedented demand from investors” is getting a bit old after two years.

Filed Under: Silver, US Mint Tagged With: , ,