U.S. Mint Suspends Silver Bullion Coin Sales After Sales Double In February by GoldCore | February
27, 2019
– U.S. Mint suspends silver
bullion coin sales after sales double in February
– Silver investment demand for American Eagles (one ounce)
silver bullion coins depletes West Point Mint inventories
– U.S. Mint suspended sales of American Eagle (1 oz) coins
on Feb. 21 because it had no coins left to sell
– With increased investment demand, the Mint is experiencing
a resurgence in steady demand with sustained purchases of
the silver coins after fluctuating and lower demand in recent
years
– Investment demand for silver set to surge again in the
next global debt crisis.
Sales of Silver Eagles continue
to be strong as demand for the official coins surged in
February.
Moreover, as the Authorized purchases of
Silver Eagles jumped by 775,000 oz this past Thursday, the
U.S. Mint issued a temporary suspension of sales until inventories
can be restocked. This is a very positive sign as total
Silver Eagle sales last year fell to low of 15.7 million,
down more than 50%, compared to the 37.7 million set in
2016.
According to the U.S. Mint’s most recent
update, Silver Eagle sales as of February 21st were 2,057,500
versus the 942,500 during the same month in 2018. Not only
are Silver Eagle sales this month more than double last
year, but they also surpassed Feb 2017’s figure by 842,000
oz:
Furthermore, Silver Eagle sales JAN-FEB
2019 are 6,075,000 compared to 4,177,500 sold during the
same period last year. Thus, sales of Silver Eagles are
up 45% versus the first two months in 2018:
I believe demand for Silver
Eagles will remain strong this year, but it will take another
financial and economic crisis to push the annual purchases
back up to the 35-40+ million range.
And, I believe we may likely see that type
of demand in the next few years as the global financial
system starts to unwind due to the massive amount of unsustainable
debt.
Interestingly, the Silver to Gold Eagle
sales ratio this year is nearly 80/1 compared to the 70/1
during the same period in 2018.
Silver Eagle Sales JAN-FEB 2018 = 4,177,500
Gold Eagle Sales JAN-FEB 2018 = 59,000 oz
Silver-Gold Eagle Ratio JAN-FEB 2018 = 70/1
Silver Eagle Sales JAN-FEB 2019 = 6,075,000
Gold Eagle Sales JAN-Feb 2019 = 77,000
Silver-Gold Eagle Ratio JAN-FEB 2019 = 79/1
It seems as if the Authorized Dealers and
investors are taking advantage of the higher Gold-Silver
price ratio of 83/1 in February versus the average of 81/1
in January. Savvy investors tend to buy more silver when
the Gold-Silver ratio is high and more gold when the opposite
is true.
Lastly, the annual record for Gold Eagle
sales was 2,055,500 oz set in 1999, due to the Y2K scare.
Although, the last peak of Gold Eagles occurred during the
financial crisis in 2009 at 1,435,000 oz. Now compare that
to the total 245,500 oz of Gold Eagles sold in 2018. However,
the largest yearly demand for Silver Eagles took place in
2015 at a stunning 47,000,000.
Unfortunately, as we can see, investors
have severely cut back on Silver, and Gold Eagle purchases
as the Wall Street Casino has attracted most of the markets’
funds. While it has been a long and frustrating road for
precious metals investors, I can assure you; we will have
the last laugh.