American Eagle Silver Dollar collectors are angry. And with good reason. In March, the U.S. Mint suddenly stopped taking orders for the silver bullion coins. And in late May, it imposed purchasing limits on its 13 world-wide authorized buyers.
The U.S. Mint has limited silver purchases before, in the late 1990's. Investors loaded up on the precious metal, fearing that the economy would be crippled by the computers' inability to adjust to the new millennium. The U.S. Mint has explained the rationing as a necessary decision, due to the unprecedented demand for the American Silver Eagles.
In 2008, The U.S. Mint sold 6.8 million American Eagle Silver Coins. That is twice the amount that was sold in 2007. In March alone, sales of the Silver Eagles surged to 1.85 million, nine times the amount sold in February! Clearly, the U.S. Mint has misjudged the strength of the silver bull market and the demand for the American Eagle Silver Dollar coins.
But what has caused this unprecedented demand for these silver bullion coins? Here are a few possible reasons:
The price of silver is soaring. On January 3rd, 2000, the first trading day of the new millennium, the spot price of silver traded at $5.41. Recently, the spot price of silver has traded as high as $20 an ounce, a 386 percent return on investment! Traditionally, more silver is mined each year than gold. Therefore, silver is much cheaper and more affordable for individual collectors to purchase than gold. The American Eagle Silver coin is the only American silver coin that can be invested in an IRA. Thus, buying Silver Eagles are an easy way for a small investor to participate in the silver bull market.
But, is this increased demand the only reason for the rationing of these Silver Eagle Coins?
Rumor has it that the U.S. Mint has run out of the planchets used to create the coins. A planchet, or blank as they are sometimes referred to, is a round metal disk that is ready to be struck into coins. These planchets are also used to create coins other than the American Silver Eagles, and the companies that produce the planchets are busy, limiting the supply received by the U.S. Mint.
The Silver Institute, a nonprofit international industry association headquartered in Washington, D.C., has written a letter to the Director of the U.S. Mint, urging it to take immediate steps to increase production of the popular Silver Eagles. With silver bullion on the rise, the Silver Institute has asked the U.S. Mint to consider alternative methods for streamlining the production process of the American Eagle Silver Dollar coin.
The U.S. Mint has limited silver purchases before, in the late 1990's. Investors loaded up on the precious metal, fearing that the economy would be crippled by the computers' inability to adjust to the new millennium. The U.S. Mint has explained the rationing as a necessary decision, due to the unprecedented demand for the American Silver Eagles.
In 2008, The U.S. Mint sold 6.8 million American Eagle Silver Coins. That is twice the amount that was sold in 2007. In March alone, sales of the Silver Eagles surged to 1.85 million, nine times the amount sold in February! Clearly, the U.S. Mint has misjudged the strength of the silver bull market and the demand for the American Eagle Silver Dollar coins.
But what has caused this unprecedented demand for these silver bullion coins? Here are a few possible reasons:
The price of silver is soaring. On January 3rd, 2000, the first trading day of the new millennium, the spot price of silver traded at $5.41. Recently, the spot price of silver has traded as high as $20 an ounce, a 386 percent return on investment! Traditionally, more silver is mined each year than gold. Therefore, silver is much cheaper and more affordable for individual collectors to purchase than gold. The American Eagle Silver coin is the only American silver coin that can be invested in an IRA. Thus, buying Silver Eagles are an easy way for a small investor to participate in the silver bull market.
But, is this increased demand the only reason for the rationing of these Silver Eagle Coins?
Rumor has it that the U.S. Mint has run out of the planchets used to create the coins. A planchet, or blank as they are sometimes referred to, is a round metal disk that is ready to be struck into coins. These planchets are also used to create coins other than the American Silver Eagles, and the companies that produce the planchets are busy, limiting the supply received by the U.S. Mint.
The Silver Institute, a nonprofit international industry association headquartered in Washington, D.C., has written a letter to the Director of the U.S. Mint, urging it to take immediate steps to increase production of the popular Silver Eagles. With silver bullion on the rise, the Silver Institute has asked the U.S. Mint to consider alternative methods for streamlining the production process of the American Eagle Silver Dollar coin.
