May 4, 2024

US Mint Sells Record 4.26 Million Silver Eagles in November

December 1, 2010 by Leave a Comment

During November 2010, the United States Mint recorded sales of 4,260,000 American Silver Eagle bullion coins. This is significant since it represents the highest monthly sales total in the history of the program.

With the price of silver up more than 65% for the year to date, investment interest in “poor man’s gold” has been on the increase. This has had a big impact on silver bullion sales by world mints, as many prefer to invest in physical precious metals than exchange traded funds or other options.

The previous record for monthly Silver Eagle sales dates back to December 1986 when 3,696,000 of the one ounce silver bullion coins were sold. This had represented the first full month that the coins were available for purchase from the Mint, and reflected the high initial demand for America’s first silver bullion investment product.

In later years, sales of the American Silver Eagle declined, as the price of silver languished. In 1996, bullion sales hit their low as only 3,466,000 coins were sold for the entire year, an amount eclipsed by the monthly sales level a decade earlier.

For the year to date, the US Mint has sold 32,890,500 ounces of silver bullion, which will mark a fresh annual high.

American Silver Eagle Monthly Sales

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 4,260,000
December –
Total 32,890,500
Filed Under: Silver, US Mint Tagged With: , ,

Details Awaited for America the Beautiful 5 oz. Silver Coins

November 30, 2010 by 6 Comments

Silver investors and coin collectors have been awaiting the final details of the United States Mint’s new silver bullion coins. Some preliminary information such as the design, specifications, and production levels have been revealed, but the premiums and exact release dates remain unknown.

The America the Beautiful Silver bullion coins will feature the designs of the new circulating commemorative quarter series struck in 5 ounces of .999 fine silver. Under Public Law 110-456, the coins will be produced with an unusually large diameter of 3.0 inches. By comparison, the Perth Mint’s 5 oz Lunar silver bullion coins have a diameter of about 2.58 inches. The larger diameter makes the US Mint’s coins more difficult to produce and potentially bendable by hand, due to the thickness of only 0.16 inches.

Following the America the Beautiful Quarters Program, a total of 56 different designs will be released between 2010 and 2021. The releases will feature a National Park or National Site from each of the 50 States, 5 U.S. Territories, and Washington, D.C. The order of release has been established based on the dates the areas were federally designated.

By law the US Mint may issue make the coins available for sale only during the calendar year that the corresponding quarter dollars are released. This means that the 2010 5 oz silver bullion coins featuring Hot Springs, Yellowstone, Yosemite, the Grand Canyon, and Mount Hood must be issued available for sale before the close of the year.

Overall production is left to the discretion of the Treasury Secretary. This is in contrast to the American Silver Eagle, which must be struck based on public demand. For 2010, the US Mint has planned production of 500,000 of the America the Beautiful Silver Bullion Coins, equally divided amongst the five designs.

The new silver bullion coins will be distributed through the US Mint’s authorized purchaser network, which currently distributes other bullion products. The premium that authorized purchasers will need to pay above the market value of the silver has not yet been announced. For the American Silver Eagle, the premium is currently $2.00 per coin. Premiums for American Gold Eagles range from 3% to 9% depending on the bullion weight.

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

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: , , , ,

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: , ,

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.

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2010 Gold Buffalo Bullion Coin Inventories Depleted

September 27, 2010 by Leave a Comment

Even though its only September, US Mint sales of the 2010 American Gold Buffalo bullion coins are done for the year. Availability for the one ounce 24 karat gold bullion coin has become erratic in recent years, with the coins only available for a few months at a time, rather than throughout the year.

A memorandum sent to the US Mint’s authorized purchaser network included the following brief statement: The United States Mint has depleted its inventory of 2010 American Buffalo One Ounce Gold Bullion Coins. No additional inventory will be made available.

The 2010 Gold Buffalo bullion coins originally went on sale April 29, 2010. After just under five months of availability, the US Mint recorded sales of 209,000 coins.

The American Gold Buffalo series was introduced in 2006, in part to compete with the 24 karat gold offerings of other world mints. The US Mint’s popular American Gold Eagle is struck in a composition of 22 karat gold.

The 2006 Gold Buffalo was launched on June 22, 2006 and the coins were available throughout the remainder of the year. In 2007, the coins were available all year, although sales levels took a dip from the strong levels of the inaugural year. The following year, the more erratic availability would begin.

In September 2008, the US Mint announced their inventory of Gold Buffalo bullion coins depleted. The offering remained unavailable for more than a month. In November sales briefly resumed to sell one last batch of 25,000 coins. After that point, Gold Buffalo bullion coins were not available again for nearly a year.

The 2009 Gold Buffalo coins finally went on sale October 15, 2009 and only lasted until December 4, 2009 before inventories were depleted.

Will we ever see a return to normalcy when bullion coins are available throughout the year and not subject to depletion, suspensions, and rationing?

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

US Mint to Offer 2010 Proof Gold Eagles

September 17, 2010 by Leave a Comment

The United States Mint has officially announced the availability of 2010 Proof American Gold Eagle coins.

Although these are collector coins, their fate has become intertwined with the demand for bullion coins. The end of Gold and Silver Eagle rationing and the recent decline in bullion sales, no doubt helped clear the way for the collectible offering. Proof Gold Eagles had been canceled for 2009.

The US Mint will offer the full range of 2010 Proof Gold Eagles, including 1 oz, 1/2 oz, 1/4 oz, and 1/10 oz coins. These will be available for sale individually or as part of a four coin set. The following product limits have been established for each offering:

Product Product Limit
1 oz. Coin 25,000
1/2 oz. Coin 15,000
1/4 oz. Coin 16,000
1/10 oz. Coin 27,000
4 Coin Set 39,000

If the US Mint manages to completely sell out of all options, that would represent 111,350 ounces of gold. Through the end of August, the average number of ounces sold through the American Gold Eagle bullion program was around 108,000 per month.

There is still no word on whether the US Mint will have the time and precious metals blank supplies to produce and offer 2010 Proof Silver Eagles.

Filed Under: Gold, 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: , , , ,