As discussed in a previous post, sales of the American Eagle silver bullion coins were on track to post record sales volume in 2013.  It’s now official – sales of U.S. Mint silver bullion coins surged past the old record set in 2011 and are track to hit a record high of 45 million ounces in 2013.

According to the U.S. Mint year to date sales of the American Eagle silver bullion coins total 40,175,000.  The previous record was set in 2011 when sales of the silver bullion coins came in at 39,868,500.  Based on monthly sales volume, the U.S. Mint might sell an additional 5 million coins by year end.

The American public loves the American Eagle silver bullion coins and can’t seem to get enough of them.  After an exuberant rise to almost $50 per ounce during 2011 silver has corrected in price to the low $20’s.  Although the decline in silver has elicited numerous bearish commentary in the mainstream press, long term investors seem to be doubling down as the price of silver price has become irresistibly cheap.  Yearly sales of the silver bullion coins have increased by almost 500% since 2008.

Total yearly sales of the American Eagle silver bullion coins are shown in the chart below with the 2013 total as of November 12, 2013.

2013-W Proof Silver Eagle

In addition to the silver bullion coins the U.S. Mint produces a proof silver eagle coin.  According to the Mint News Blog the 2013-W Proof silver Eagle has already sold out and 2013 is the third year in a row that this popular product has sold out well before year end.

Sales for the 2013 Proof Silver Eagle originally began at the US Mint on January 24, 3013. Opening orders were slower compared to the prior two years, however the pace of orders remained brisk throughout the year. The coin typically represented one of the US Mint’s top sellers on the weekly sales reports.

Recently, weekly sales had spiked, with 29,613 units orders in the previous reporting period and an indication of 29,025 units ordered in the week just ahead of the sell out. Sales data shows total orders at 880,030 units. This is a bit higher than recent prior years.

In 2011, the individual proof Silver Eagle had sold out on November 22 after reaching sales of 850,000. In 2012, the sell out had occurred on November 13 when sales had reached 819,217.

The American Eagle silver bullion coins cannot be purchased by individuals directly from the U.S Mint.  The coins are sold only to the Mint’s network of authorized purchasers who buy the coins in bulk based on the market value of silver and a markup by the U.S. Mint.  The authorized purchasers sell the silver coins to coin dealers, other bullion dealers and the public.  The Mint’s rationale for using authorized purchasers is that this method makes the coins widely available to the public with reasonable transaction costs.

The U.S. Mint American Eagle silver bullion coins remain a popular method of building wealth with periodic purchases.  The American public can’t seem to get enough of the bullion coins and the desperate actions of global central banks to keep the financial system afloat with a deluge of paper money can only cause more financial anxiety and more silver purchases going forward.

There 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.