gold & silver sold outThis year’s 2014 American Silver Eagles debuted on Jan. 13, or about a month after the 2013 American Silver Eagles sold out on Dec. 10. United States Mint distributors could not order as many as they wanted, as sales were rationed. The U.S. Mint allocated how many it sold during the first week to fewer than 3.6 million, and then reduced the amount to less than 600,000 for the second week so it could “begin the process of slowly building weekly inventories.” The final week of Silver Eagle sales reached 741,000.
…..The United States Mint now has the capability to fulfill demand, but the limited supply of silver blanks has kept allocation alive.

2014 Silver Eagles As Low As $3.29 Over Spot at SDBullion!

 

From The SRSRocco Report:

Sales of 2014 Silver Eagles were restricted in January due to a limited supply of available silver blanks.  Silver Eagle sales during January reached 4,755,000 oz, compared to 7,498,000 oz in January, 2013.

According to Mike Unser at the CoinNew.net:

This year’s 2014 American Silver Eagles debuted on Jan. 13, or about a month after the 2013 American Silver Eagles sold out on Dec. 10. United States Mint distributors could not order as many as they wanted, as sales were rationed. The U.S. Mint allocated how many it sold during the first week to fewer than 3.6 million, and then reduced the amount to less than 600,000 for the second week so it could “begin the process of slowly building weekly inventories.” The final week of Silver Eagle sales reached 741,000.

…..The United States Mint now has the capability to fulfill demand, but the limited supply of silver blanks has kept allocation alive. The bureau does not manufacture blanks for silver coins like it does for nickels, dimes and quarters. They are purchased from a select group of vendors who are rationing how many they sell.

Interestingly, the U.S. Mint sold out of 2013 Silver Eagles on Dec. 10th, last year and had more than a month to get the 2014′s up and running.  However, the U.S. Mint could only produce 3.6 million by Jan. 13th, 2014, compared to the 3,937,000 oz sold by Jan. 7th, 2013.

Again… according to Mike Unser,

Last year in January, 2013 American Silver Eagle sales reached a monthly record of 7,498,000. The 2013-dated coins debuted on Jan. 7, 2013 with orders of 3,937,000. The Mint had to halt sales temporarily on Jan. 17, 2013 when its stockpiles were depleted. Sales resumed in an allocated basis on Jan. 28, 2013 with rationing in place ever since. The 2013-dated Silver Eagle inventory ran out on Dec. 13, 2013. The month-long dry spell may help in driving January 2014 sales to a new record.

I spoke with Michael White, Public Affairs for the U.S. Mint last week about the decline of 2014 Silver Eagle sales compared to last year.  I asked him if the reason for the fall in sales was due to supply or demand.  Mr. White did not have an answer and told me that he would return my call in a few days.  I still have not received a call, but when I do, I will update this post.

There are two reasons why sales of 2014 Silver Eagles in January were down 2.7 million oz (36%) compared to the same month in 2013.

1) Limited supply of silver blanks from third-party vendors

2) Softer sales in the beginning of 2014

I also corresponded with James Anderson at Goldsilver.com.  He said that the big reason for low 2014 Silver Eagle sales is that Hedge Funds dumped millions of ounces of 2011-2012 Silver Eagles on the wholesale market at the end of 2013.

He went on to say that once the wholesalers worked through this glut of secondary mint supply, the normal monthly orders for the 2014 Silver Eagles would ensue.  James believes this might take until March before the market absorbs the extra supply.

Here is a table from CoinNews.net on the total 2014 Gold & Silver Eagle sales for January:

2014 Jan Gold & Silver Eagle Sales

If the U.S. Mint released the new 2014 Silver Eagles during the first week of the year instead of the end of the second week, I would imagine sales would have been closer to 6+ million for January.

The Mint recently updated their Silver Eagle sales for February, yesterday:

2014 Jan Feb Silver Eagle Sales

Just as I was getting ready to finish this article, I noticed that the U.S. Mint updated their sales figures once again.  Here we can see that the U.S. Mint sold another 234,500 oz in the past 24 hours:

2014 Jan Feb Silver Eagle Sales NEW

The total Silver Eagle sales so far for 2014 are 5,570,000 oz.  It will be interesting to see how the rest on the year unfolds for Silver Eagle demand as weakness continues in the Broader Stock Indexes and financial system.

Lastly, demand for Silver Eagles is stronger than Gold Eagles.   So far this year, 5,775,000 oz of 2014 Silver Eagles have been sold compared to 95,500 oz of Gold Eagles (in all denominations).  This turns is a ratio of 60 to 1.

 

100 oz Silver RCM Bars As Low As $0.79 Over Spot at SDBullion!

  1. Still thinking that AVALIABILITY is the Key to the whole ball game.
    Where the rubber meets the road is–CAN I Add If I Choose To–even if it it’s all the way into the “sell in May and go away” season, or this summer—price can stay low & it really will be the last shot a guy is gonna get to ad Phyzz on the Cheap; Have my fingers crossed!
    But…is supply going to be there??

    • No, but it IS ridiculous that the US Mint allows itself to be put in this position.  Imagine if Nike or Reebok quit selling shoes for a few weeks because of a shortage of shoe laces.  Or Ford or GM had to stop selling cars because of a tire shortage.  The entire world of business and industry would be rolling their eyes at allowing that to happen… and continuing to let it happen.  This is not exactly a new problem.
       

    • Ed, that argument i can agree with! In the meantime the cdn maple leaf is undergoing some technological advances, arguably is a prettier coin (my opinion), not arguably it is more pure (though we can debate whether that is really worth much), and it carries cheaper premiums!

      Personally i think kookaburras are a good shot right now, xc likes the lunars better.

    • The lunars may be useful for buying and then flipping for a profit, but I personally am NOT going to pay homage to the Aussies’ & Canuks’ chinese overlords.
       
       

    • @mikeyj80
       
      So we can agree to agree?  lol
       
      I like the Maples and have quite a few of them.  Yeah, that $0.50 to $0.75 per coin discount compared to ASEs is nice.  
      :-)

  2. See? Look at how far sales of silver Eagles have declined! Demand has fallen off a cliff, so get out now! (Wry sarcasm vented)

    The supreme irony is that while COMEX ‘bullion’ is ‘valued’ under 20 banknotes, Mint ‘bullion’ coins are 45 banknotes.

    See: http://catalog.usmint.gov/webapp/wcs/stores/servlet/CategoryDisplay?catalogId=10001&storeId=10001&categoryId=13738&langId=-1&parent_category_rn=10191&top_category=10191

    Perhaps, like Post Office Stamps, we should gauge currency inflation by Mint seigniorage in tandem.

    • If that comment was directed at me that is certainly not the message i am selling.  If demand for bullion coins is exceeding blank supply clearly there is demand, but demand for bullion products vs. mass consumption of silver for industrial use are different things.  Maybe part of the ‘mass awakening’ people have been hoping for?  
       
      However this demand seems mostly constrained to the US Eagle?

    • Mikeys right- Nothing to see here… Go home folks. Talk of rationing silver is pure heresy!  As a matter of fact, I’m tired of all you PM junkies, I’m logging your IP’s right now, passing it to the FIAT DEMON in charge (or the FDIC) and have you all black-bagged without trial under the NDAA.
      And I’ll hear no more of this “lack of availability” nonsense! 

    • @Shamus001
       
      LOL!  Well, good luck with that.  StartPage says you can’t have my IP address.  NSA can’t have it either because StartPage does not store it.  Not that they can’t get around that if they want.  It is amazing at what one can do with a HUGE budget and no one to tell you that you can’t do whatever you want. Oh, need a warrant for something?  No problem.  There is a special rubber-stamp court that will crank out as many warrants as you want.
       

    • @shamus001

      i was laughed at a week back for suggesting that blank production, and therefore rationing wasmto blame ( not an original thought mind you, shamelessly stolen from what i’d been reading). It is pretty clear to me that is where the bottleneck is inmretail production.

    • @Canadianstacker

      Let’s be a bit more precise, the *canadian mint* is selling a *premium version* of their silver eagle for $80. And I thought US Proof eagles were high!

      The canadian mint is notorioius for high priced offerings with limited mintages, some are downright beautiful, others downright silly. That said, i won’t be buying one of these, but I do bet the popularity of the maple leaf let’s them sell this out… I may be wrong but I’ve seen them sell out of uglier coins!

  3. Wasn’t Silver and Gold considered currency before  1971?  Why are the traders getting suicided?  Was it not Iraqi Dinar considered $3.44 compared to the $1 USD back in the 1980′s?  Now Argentina FOREX getting fired, soon to be suicided?  All the questions but I here ain’t no meat beneath them bones?  The U. S. D. sucks & I’m sorry Silver& Gold played in the London whale for the manipulation. http://mobile.reuters.com/article/idUSBREA1423620140205?feedType=RSS&irpc=932

  4. Prior to the congressional act that authorized the minting on ASE`s and Gold Eagles, that began releasing in 1986, Silver and Gold prices were a fraction of todays prices. I believe the minting of these coins has legitimized Silver and Gold investing. And caused (or at least contributed to) the bull market that many seem shaky about today. Prior to 1986 ALL YOU COULD GET WAS JUNK AND GENERIC ROUNDS AND ART BARS. My God, most Silver was used as door stops and paper weights. I do believe we have passed that point today.
     
    For me, it`s U.S. , Canadian, and Royal minted soverign coins only. I get virtually no pride of ownership in generics. And if perhaps you, dear reader, have no pride of ownership in your stack, that may explain why some are falling on thier swords here. But, thats just me, what do I know?

    • @Silver-Dollar
      I think that theory has merit. I have a similar theory regarding the advent of “e-trade” and the bull mkt of the 90s. Brought the stock mkt to john q in an affordable and easy way, new buyers mean prices go higher.

    • You know what you like and that is all that one needs when one is collecting something.  Like you, I like coins that look nice.  Some of the generic rounds are OK but not great.  I prefer BU grade US 90% dimes, quarters, halves, and dollars as well as ASEs and Canadian Maples.  There are some beautiful coins out there but I don’t want to collect them all.  The ones that I have are used for financial insurance, long-term savings, and because I enjoy collecting and looking at them from time to time.  I do have some 5-oz SilverTowne bars and a couple of 1-oz. art bars and rounds as keepsakes.  But the bulk of my collection is in the sovereign mint coins mentioned above.
       

    • @Ed_B
       
      I like your collection criteria Ed. I too have a few art bars and rounds, but damn few. But to be sure I will dump my soverigns should the price and oppurtuinity present itself. Well mabey not all, but most.

    • @Silver Dollar
       
      Thanks, I like yours as well.  In fact, there is some similarity there!  :-)
       
      I think that it would be VERY nice if the price of silver were to go up considerably.  If it did, I would be very tempted to sell off enough of my stack to re-pay what I have put into it.  That would allow me to “play with the house’s money”, essentially having the remainder of my stack for free while I put the cash collected from the sold portion into a decent piece of land.
       

    • @Silver_Dollar , Ed_B , we all share the same preference, it seems.
      When I buy, I always keep in mind there will be a time to sell, and try to consider what the buyer is seeking.  Yes – everybody has their own preference – but the buyer will want to have confidence that he is not buying a fake.  Circulated, pre-1965 US coins, each with their own unique wear marks, are likely to be real and not counterfeits.  ASE’s & Canuk Maples can be verified with a fisk(?), scale, or other test method.
      But it may be difficult to verify the authenticity of generic rounds & bars, which the buyer may be unfamiliar with.
       
      Ed, not to shoot a hole in your preference for BU ‘junk,’ but a brand-new counterfeit can appear as a BU ‘junk’ coin.
      Just sayin’

    • If you live in the U.S. I can make a good case for only stacking AGE’s, SGE’s, pre 1933 gold, and junk silver.  Figuring there will come a day that you will want to sell your stack for the currency de jur, what forms of bullion will have more favorable tax reporting requirements by the buyer and tax liability for the seller? Present tax regulations favor official U.S. coins.  There already is mov’t in many states to reclassify official U.S. Mint coins as spendable legal tender. I have every expectation that when the real financial system crisis hits this will become law. And because there is no tax on “money”, your gains will be tax free. But, only if you are holding the right material. Think about it. There must be a reason TPTB started the Eagle program in 1986. There must be a reason why it currently enjoys favorable tax treatment. I think it’s the smarter place to be. And these products are recognizable and easily verifiable as authentic.

    • @Mammoth
       
      “Ed, not to shoot a hole in your preference for BU ‘junk,’ but a brand-new counterfeit can appear as a BU ‘junk’ coin.  Just sayin’”
       
      I hear ya, Woolly.  I avoid that by not buying from Joe Schmo, who sells out of his overcoat in an alley via a Craig’s List ad.  ;-)
       
      More than 95% of my stack was bought from highly regarded big volume dealers plus a bit from a LCS.  Yes, it is possible to get fakes these days but the chances are pretty small when buying only from dealers who have WAY too much to lose via having the word get around that they sold fakes.  I would rather have that kind of assurance than to squeeze the last price squeal from a “deal”.

  5. Oddly enough, what I took from this story was that “This is the reason there was little silver sold in Jan”  But this morning, Bloomberg article is explaining why SO MUCH SILVER AND GOLD SOLD AT THE MINT THIS YEAR?
    “An ounce of gold bought as little as 62.65 ounces of silver in London today, the least since Jan. 23. Sales of gold coins by the U.S. Mint rose 63 percent in January to the highest since April, while silver purchases almost quadrupled.”
    Ok, Now im getting confused?  Here’s the article in it’s entirety, although i’m sure some of you already read it today:
     

    http://www.bloomberg.com/news/2014-02-06/gold-holds-advance-as-growth-concern-increases-demand-for-haven.html

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