With today’s update of 500,000 Silver Eagles sold, bringing November’s totals to exactly 1,000,000, the US Mint has just set an all-time sales record for Silver Eagles, eclipsing the previous annual record of 39,868,500 oz set in 2011.
With the US Mint alerting primary dealers last week that 2013 production will shut down on December 9th, it appears that the powers that be do not wish to allow 2013′s all time silver eagle sales record to get too far out of hand.

Silver Eagle Sales & Ratio To Gold EaglesWhile owning precious metals will be a very wise store of wealth and investment in the future, silver will actually turn out to be the “King of Investment Gains.”  A good barometer of the retail gold and silver market is shown by eagle sales on the U.S. Mint.
In the first three months of the year, investors were purchasing silver eagles at an average ratio of 48 to 1 to gold eagles.  However, after the huge April 12th precious metals take-down, investors overwhelming purchased a great deal more gold eagles in percentage terms that month as the price of the yellow metal fell $200 in two days.
However, something startling has taken place in the month of July.  Investors have been purchasing silver eagles at ratio of 95 to 1 compared to gold eagles.
Investors are presently buying, nearly 50% more in silver eagles than in gold eagles in dollar terms!

usmint-goldcoinsalesToday’s charts of the day examines US Mint gold eagle and silver eagle sales totals from 2008-2013.
Surprisingly, while ASE sales have increased the most on a percentage basis, it is US Mint gold eagle sales that are literally going parabolic.

MUST SEE US Mint Gold & Silver Eagle sales charts are below:

When it comes to real physical “hold in your hand” metal, there is NO ONE selling.  If no one is selling then how is it that the price could go down?  …COMEX and LBMA!  The paper markets, that’s how.  Paper contracts that are “sold” with no Silver, no Gold backing them AND no intention of ever delivering have hit the markets to knock prices down.

This “strategy” however, has spawned the unintended consequences of increasing demand for the real thing.
The recent US Mint shutdowns and premium spike in 90% silver is the looming “shadow” of shortage and as long as the “price” in the paper markets have JP Morgan’s boot on its throat, the shortage situation will continue, get more acute and ultimately blow up in a buying panic…exactly what JPM has been trying to avoid at all costs!

The US Mint announced another 300,000 silver eagles sold Monday, bringing the 6 day sales total to an astonishing (and record pace) of 5.082 million ounces!
As silver eagle production was shutterred until January 7th, the Mint is on pace to sell nearly 15 million silver eagles in the first month of 2013, which would be a record ANNUAL sales total as recently as 2007! (9 million ounces sold for all of 2007). 

Zeal010413BSubmitted by Adam Hamilton:

The US Mint’s bullion coins are called American Eagles. The “bullion” distinction means their value is based solely on the spot prices of gold and silver, with no special premium for rarity. So they offer investors far more physical metal per dollar spent than expensive collectible coins. I’ve always believed maximizing one’s total gold and silver holdings is far more prudent than playing the scarcity game.

The US Mint’s production is based on real-world demand from coin dealers. When these guys have enough inventory from existing investors selling, they don’t need to order new Eagles from the Mint. So the Mint ramping up production is always a response to rising coin-dealer demand, which is in turn the result of rising investor demand for physical gold and silver. Thus the Mint’s sales data is valuable.

It is made available on a monthly basis for both gold and silver Eagles. The charts in this essay superimpose these coin sales over the daily gold and silver price action over the course of their entire secular bulls. Despite the perception of 2012 being a weak year for the precious metals, new physical demand from investors for American Eagles is actually robust to strong. This is certainly a bullish omen.