US Mint to Resume Bullion Silver Eagle Sales on Nov. 17

by Rhonda Kay on November 10, 2014 · 11 comments

Stacks of American Eagle silver bullion coins

The United States Mint will resume sales of its most popular bullion product on Nov. 17, 2014

The United States Mint expects to have over one million 2014 American Silver Eagle bullion coins for sale by Nov. 17, according to a memo the agency sent to its authorized distributors.

Since the U.S. Mint cannot produce enough Silver Eagles, the Mint sold out of them after weeks of explosive demand, sales of the 99.9% pure silver coins will resume on a rationed basis.

"As you know, the drop in silver prices has led to significantly increased demand for American Eagle Silver Bullion coins in the last four weeks," the U.S. Mint told its authorized distributors on Monday, Nov. 10.

"We anticipate having over one million 2014-dated American Eagle Silver Bullion Coins available when we go back on sale, on an allocation basis, Monday, November 17th."

At some point, the Mint will no longer strike coins for this year. As a point of reference, the Mint sold its last batch of 2013-dated Silver Eagles on Dec. 9. Buyers then had to wait for five weeks until this year’s version launched on Jan. 13, and quantities were limited until May. Next year’s American Silver Eagles are due out in early January.

Update: Tom Jurkowsky, director of the U.S. Mint’s Office of Corporate Communications, sent CoinNews.net the following statement on Tuesday, Nov. 11:

"The recent volatility in silver prices, with silver dropping to five-year lows in the $15.00 per ounce range, has resulted in an increase in sales of United States Mint American Eagle Silver bullion coins. The weekly average sales of American Eagle Silver bullion increased to 1.16 million ounces in the weeks since October 1, up from 586,000 per week in the July-September quarter. This represents an increase of approximately 98% in a time span of just over one month. Calendar year (CY) to date, the Mint has sold 39,381,000 American Eagle Silver bullion coins. The Mint sold a record 42,675,000 coins in CY 2013.

When bullion demand exceeds the supply of ready-to-ship finished inventory, the Mint institutes a policy to allocate available American Eagle Silver Bullion Coins to its authorized purchaser distribution network. The allocation policy was in effect from January through May of 2014.

Over the last five years, the Mint has dramatically increased the supply of American Eagle Silver bullion coins with the majority of the raw material silver blanks coming from two suppliers-Sunshine Minting and Leach/Garner.

Near the end of every calendar year, the Mint plans the production transition to coins dated with the upcoming year. The Mint began the transition to build inventory of 2015-dated silver bullion earlier this fall. With demand for immediate delivery of 2014-dated coins exceeding supply, we are shifting all resources back to 2014 production."

The United States Mint does not sell bullion American Silver Eagles directly to the public. Instead, they are offered in bulk to "Authorized Purchasers" who buy them at melt value plus a premium of $2 per coin. Bullion coins are usually available to buy for a few percentage points above the spot value of their precious metal content.

{ 11 comments… read them below or add one }

John Pate November 11, 2014 at 2:34 pm

The mint shouldn’t ration the coins, they should increase the price until supply meets demand. It’s called “the free market” but it doesn’t seem to apply to anything these days.

James November 11, 2014 at 5:05 pm

Well said John,

Soon after I buy all I can get at these cheap prices!

K S November 11, 2014 at 6:10 pm

@John, why would you suggest that the Mint increases its premium to spot price when pricing the bullion coins? You are looking at the wrong end of the stick. It’s the spot price that has to reflect supply vs demand. Would miners be able to continue supplying silver at these spot prices? Can other mints supply the blanks for the ASE at these spot prices?

kevin November 11, 2014 at 11:02 pm

just a thought, i wonder if they really are running out of silver after all, there is no real use for gold,and they say they have plenty of gold bullion,silver could be totally undervalued and rare might be time to buy some silver.

TJ34231111 November 12, 2014 at 8:07 am

WHAT?! I thought there was a SHORTAGE! That was pumped on so many PERMABULL SITES, HOW CAN THEY RESUME SELLING!!! OMG! lol. Shortage my a$$

John Pate November 12, 2014 at 10:00 am

Physical silver price should be much higher. Many mining companies are refusing to sell at this price because it’s below mining cost. Derivatives using the price of a commodity as a level is OK until the paper market starts dictating the price of the commodity.

Mikki2071 November 12, 2014 at 10:07 am

The shortage is in the capacity to make the blanks, not physical silver. The suppliers of the blanks aren’t going to kick in new investment unless the higher sales can be anticipated to go on forever. They max their return by running at 100% of capacity with a backlog. They don’t give a damn whether you get your coins this month or next. No competitors per guaranteed government contract. So, you get allocation on peaks, filled later. I’m not seeing any shortage of Eagles from retail dealers. Dealer mark-ups vary but are running $0.85-$1.00/ coin which is normal. They’re not offering any incentive to sellers.

Mining companies are dumping silver on the down slide. Writing a futures contract today at $16/oz is better than next week at $15. Until they band together and price fix, nothing changes. The other aspect is silver is a minor component of most mining companies total revenue. It’s the gravy not the turkey. If you’re primary is copper, the silver has to be removed anyway so it can be viewed as a waste product. Sit and hold costs you.

Goldbug November 12, 2014 at 11:03 am

To TJ34231111:

“WHAT?! I thought there was a SHORTAGE! That was pumped on so many PERMABULL SITES, HOW CAN THEY RESUME SELLING!!! OMG! lol. Shortage my a$$”

Well let’s see . . . when you can’t accept new orders because you lack the inventory to fill such orders, you have a shortage. It’s not rocket science you ding a ling.

John Pate November 12, 2014 at 12:38 pm

If production cannot keep up with demand, that’s a shortage. 🙂

In times of shortage the price rises, doesn’t it? err maybe not,

I just can’t see how anyone can suggest the price of precious metals is not being manipulated.

RonnieBGood November 12, 2014 at 11:25 pm

Kevin- No real use for Gold?
There are many industrial uses. For example the terminals for all of the connectors for sensors made in all cars since 1994. OBD2 requires Gold plated terminals for all connectors on car sensors!

paul April 18, 2015 at 9:41 am

Government needs price of silver to go up a shortage would do that think about it if raw silver is 16.00 oz its hardly worth mining or is it???

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