After Nearly Two Years of 1:1 US Mint Sales Ratios of Gold and Silver in Absolute Dollar Values, Ratio Has Spiked to 4:1

With the first week of May in the books, US Silver Eagle sales have failed to pick up the pace from April’s weak sales which saw only 1,520,000 ounces sold, which would have been the lowest monthly sales total in several years were it not for February’s total of 1,490,000 ounces.

The Mint has sold only 335,000 Eagles month to date- on pace roughly for another 1.5 million ounce month-the 3rd such in the first 5 months of the year.
Clearly investors have lost their excitement and enthusiasm for silver currently, and are waiting for a break-out in price before making additional purchases.

We’re not too concerned yet over the drop in eagle sales as enthusiasm and retail sales will increase again when price again begins moving higher.  The fact is that most investors buy when an asset is rising, rather than during a protracted and ‘boring’ correction and consolidation.

Perhaps more interestingly however, is the fact that after nearly two years of 1:1 sales ratios in absolute dollar values of gold and silver at the US Mint, the Mint is currently selling nearly 4x the dollar value of gold as silver.

Month to date, the Mint has sold 22,500 gold eagles, which at $1650/oz is approximately $37.1 million worth of gold.

The 335,000 silver eagles sold in May at $32/oz is only approximately $10.7 million worth of silver.

2012 Silver Sales Totals
(in ounces / number of coins)
Month One
( oz. / #coins )
January 6,107,000
6,107,000
February 1,490,000
1,490,000
March 2,542,000
2,542,000
April 1,520,000
1,520,000
May 335,000
335,000
Total 11,994,000
11,994,000

This fact, combined with the silver/gold ratio which has plunged to 54.3 to 1, presents an opportunity for stackers to consider swapping gold for silver to capitalize on silver’s current oversold condition relative to gold.

One month does not make a trend, but we will keep our eyes on the total dollar value of investment flows going into silver vs. gold closely over the next few months.

Comments

  1. Ive been considering platinum also.
    when i first got into collecting, platinum was way higher than gold,
    it seems that most of the manipulation tactics being used on Gold/Silver, are also having an effect on Platinum.
    Ive been tempted to sell some Gold for Platinum lately.
    Got no Platinum yet, in the spirit of diversifying my PM portfolio, and cuz I want some.

  2. so low prices plus low demand?  Time to stock up, when people AREN’T piling in on the rise :)

  3. Isn’t it supposed to be 10 gold per platinum? 

    In the fuutre, when we do eventually return to sound money, the fantasy gaming geeks truly will inherit the earth as we’re accustomed to talking about buying good interms of copper, silver, gold and platinum.  ;)

  4. Whoa! 54.3  to 1 what do the manipulators have up their sleeves. I think I will hold my gold for now (just in case) and I have every oz of faith in my silver stash out performing gold in the long run. But I’ll still be Stacking! Stacking! Stacking! SILVER

  5. I almost placed an order for silver AND gold on another site just now, then second guessed myself and cancelled before I clicked “place order.” I got into silver not just to make a good investment, but to help crash the banks. So I’m going to stick to silver today and get it from the local coin shop. I keep having this idea that I need some gold, but I know silver will treat me even better in the long run and I’m not very wealthy to begin with. The words of David Morgan ring in my head, “Gold will preserve your wealth, but silver has the potential to make you rich.”

  6. Gold has weathered the attacks better than silver this spring, and being touted by pundits all over the place. At the same time, silver has been panned and attacked (both in the press and on the market) daily for months. So there is more interest in gold than silver now.  The banks must be very relieved that their propaganda campaign is having some effect.
    The only way we escape these market controls will be through a commercial failure. With this decrease in interest, it will just take longer.
    The boyz are pretty good, no?

  7. What will it take to have interest in silver again?

  8. “What will it take to have interest in silver again?”

    Education of the rank and file about the manipulation, supply, uses and future for silver. All of which can be found on sites like this very informative one here.
    Tell your friends to visit SD and Turd’s place, Harvey and the rest.
    Keep the faith, there’s a reason why they sic their dogs on us.

  9. “What will it take to have interest in silver again?”

    Yes Conax, education is the key!!!

    “Paper is poverty…it is the ghost of money and not money itself.” -Thomas Jefferson

    I have seen bright and intelligent men that fail to understand that the electronic digits on their computer
    screens are not real money. They always “get” it, though, when they hold an ounce of gold or a 100-ounce bar of silver. It’s a frightening aspect of our society that we have become so detached from real money that most of us cannot even comprehend real money. Do yourself a favor this week and go to your local coin shop and just touch an ounce of gold or a big fat bar of shiny silver. Then look at the wad of paper in your wallet (or worse, digits on your bank statement) and tell me honestly where you would rather invest your future!!!

  10. 4:1 buying while price ratio is 55:1

    Still looks like silver is the better buy for me.
  11. I got educated in an old “Wendy’s” fast food joint. The tables had Sears & Roebuck catalogue ads from the late 19th century embossed in the table tops. A double barreled shotgun for $12. Oil lanterns for 75 cents. An iron stove for $9.  A warm coat for $1.50. It seems the United States had a very solid currency in place, and people could put their money in a mattress for their retirement. After a decade, the value would still hold up.

    Then, something went terribly wrong…

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