May 29, 2024

American Silver Eagle Bullion Sales Soar As Investors Buy At Bargain Prices

The US Mint’s latest monthly reports on the sale of American Silver Eagle bullion sales show that investor buying has hit all time record levels.

Total sales of the American Silver Eagle bullion coins in 2010 came in at a record high of 34,662,500.

With over two months remaining in 2011, sales of the American Silver Eagle have already surpassed the record level of 2010 with sales of 36,375,500 ounces.  If sales of the Silver Eagle for November and December match the levels of 2010, total sales for 2011 should total over 42 million ounces or more than 20% above the record breaking sales level of 2010.

A review of sales by month for 2011 indicate solid fundamental buying by silver investors.  Typically, buying of an asset will increase as prices go higher and decrease as prices decline.  This was not the case with the American Silver Eagles – despite a sharp sell off in May and September, monthly sales increased as investors took advantage of bargain prices.

Silver had a volatile year, selling at $30.67 per ounce at the beginning of the year and moving up to a high of $48.70 (as measured by the London PM Fix Price) on April 28th.  Silver closed yesterday at $33.47, up $2.80 or 9.1% on the year.

Based on strong fundamental demand for physical silver, expect silver prices to end the year considerably higher.

US Mint Sells Record 4.26 Million Silver Eagles in November

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
Total 32,890,500

US Mint Silver Bullion Sales on Record Pace, Gold Sales on Pace for Fourth Highest

Through June 30, 2010, the United States Mint has sold 18,168,500 ounces of silver bullion and 833,500 ounces of gold bullion. If the current pace is maintained for the rest of the year, US Mint silver bullion sales will break another record and gold will be within the top four annual sales totals.

The United States Mint currently offers the one ounce American Silver Eagle. This has been the US Mint’s only silver bullion coin option since its debut in 1986. Annual sales totals have ranged from a low of 3,466,000 ounces sold in 1996 to a high of 28,766,500 ounces sold in 2009.

This year’s mid-year total sales of 18,168,500 suggests that a new record high for annual sales will be extremely likely. Monthly sales figures have been relatively steady with four months above the 3 million level. It should be noted that this is not necessarily indicative of steady demand, as sales of the coins are currently subject to an allocation program, which rations the available supply amongst the US Mint’s authorized purchasers.

Later this year, the US Mint will be releasing a new series of America the Beautiful Silver Bullion Coins. These coins will contain 5 ounces of silver and feature designs which are duplicates of the current quarter program. It’s still uncertain just how many of these new silver bullion coins the US Mint will produce and whether this will have a meaningful impact on overall silver bullion sales.

On the gold bullion side, the US Mint current offers the American Gold Eagle and the American Gold Buffalo. The first is a 22 karat gold coin available in one ounce, one-half ounce, one-quarter ounce, and one-tenth ounce sizes. The latter is a 24 karat gold coin available in one ounce size only.

The mid-year gold bullion sales total of 833,500 ounces is made up of the following:

  • 618,500 American Gold Eagle 1 oz
  • 31,000 American Gold Eagle 1/2 oz
  • 44,000 American Gold Eagle 1/4 oz.
  • 280,000 American Gold Eagle 1/10 oz.
  • 160,500 American Gold Buffalo 1 oz.

According to the latest information I have read, the one ounce bullion coins are not subject to allocation, however the fractional weight gold bullion coins are subject to allocation. These coins available to authorized purchasers starting on June 10, 2010.

The highest annual US Mint gold bullion sales was achieved in 1999 when 2,055,500 ounces were sold. This is followed by 1998 at 1,839,500 ounces, 1986 at 1,787,750 ounces, and 2009 with 1,625,500 ounces. The lowest annual gold bullion sales total occurred in 2002 when only 164,500 ounces of gold were sold for the entire year. The US Mint actually sold more gold bullion than this last month when 185,000 ounces were sold.