U.S. Mint rationing silver American Eagle coins… again

SilverCoinsToday.com has suspected that silver coin rationing has been going on since February. Now, it’s official.

Spiking demand for silver American Eagles has forced the U.S. Mint to ration sales of the bullion coins … again. Via a special allocation program announced last week (per ChristianPost.com), the Mint will restrict the number of Silver Proof coins authorized purchasers can buy.

Similar allocation measures have been implemented off and on since 2009 as the Mint struggles to meet demand. This comes despite a law mandating coin production “in quantities and qualities that the Secretary determines are sufficient to meet public demand.”

Extraordinary times call for extraordinary measures.

SilverCoinsToday.com, in fact, has suspected that silver coin rationing has tacitly been going on since February.

“In January this year Authorized Purchasers were buying 2011 Silver Eagles nearly every day,” the site reports, “but by March that sales trend changed. Daily sales updates became less frequent and weekly sales increases were capped at or very close to the 700,000 level after the week ending March 4.”

That could explain why we haven’t seen record-breaking sales numbers for the coins since the start of the year. In fact, January 2011 saw the most American Silver Eagle sales in history with the Mint offloading 6,422,000 of the coins, according to SilverCoinsToday.com. The next closest month came in November of 2010 when 4,260,000 American Eagles were sold.

Silver prices have risen more than 40 percent since the start of the year. That’s on top of a more than 80 percent gain in 2010. At some point, those high prices could start eating into demand for silver bullion coins, but for now, at least, it looks like the eagles are still flying high.

Related

ONE RATIO TO RULE THEM ALL


Sprott silver predictions calling for uncharted gold-silver ratio


MINING INDUSTRY SHAKEUPS IMMINENT?


Silver Wheaton predicts mining deals once silver prices stabilize (SLW)


SILVER EYING $50/OUNCE


Silver just five trading days away from all-time record high price


ARTIFICIAL MARKETS


Silver market manipulation can’t be ruled out


PUT YOUR MONEY WHERE YOUR MOUTH IS


How to invest in food stocks

NO MORE CHEAP CASH


What happens when QE2 ends in June?

Leave a Reply

Your email address will not be published. Required fields are marked *