Since Congress authorized the production of American Eagle Bullion coins in 1986, it has become one of the easiest ways for investors to accumulate a physical position in precious metals. American Eagle Bullion coins have been available in gold and silver since the program’s inception. Platinum has been available under the Bullion coin program since 1997.
The bullion coins are priced at the current market price of gold, silver or platinum plus a dealer markup. The US Mint does not sell the bullion coins directly to investors but instead sells the coins to a network of Authorized Purchasers who resell the coins to the public. Unlike commemorative or numismatic coins, the bullion coins will closely track the price of the underlying precious metal making it easy for investors to follow the value of their bullion holdings.
The American Eagle Silver bullion coin is available only in the one ounce size and is particularly attractive to small investors as a cost effective way to hedge against inflation and debasement of paper money. The US Mint’s American Silver Eagle Bullion program has been successful from the start. The first year’s sales of bullion Silver Eagles in 1986 was 5,096,000.
Between 1987 and 2007 sales of the Silver Eagle averaged 7.1 million coins per year. The lowest year on record for sales was in 1996 when sales of the coin were only 3.6 million. Since 1986, sales of the American Silver Eagle exceeded 10 million coins only two times during 2002 and 2006.
The financial crisis of 2008 resulted in a surge of Silver Eagle sales as worries intensified over the integrity of paper money and the soundness of the financial system. During 2008 Silver Eagle sales soared to 19,583,500 coins which was a record high. In 2009, sales continued to explode reaching 28,766,500 coins and 2010 was another year of record sales at 34,662,500.
Year to date sales of the Silver Eagle bullion coins during 2011 has now reached 25,530,000. Based on average monthly sales during 2011, sales for the entire year could easily reach 42 million coins, up 20% over last year.
Investors in silver have preserved their purchasing power and increased their wealth. As previously discussed, the dip in silver prices during May was a buying opportunity and silver prices should be hitting all time highs before year end (see How Soon Will Silver Hit New Highs?).
American Silver Eagle Bullion Sales 2011
Sales of the 2011 Silver Eagle bullion coins will begin on Monday, January 3, 2011. This will mark the first day that authorized purchasers may place orders for the coins with the United States Mint.