US Mint Alerts Primary Dealers Silver Eagle Production to Be Halted for 4 Weeks!

gold & silver sold outSDBullion has learned from industry contacts that the US Mint alerted its Primary Dealers Thursday that The Mint is halting its weekly allocation of 2013 Silver Eagles, and will be suspending all sales of ASEs for 4 weeks!

*Updated 2:30pm EST: Silver Eagle shortage already underway as primary dealer wholesalers have taken the rare step of raising ASE prices intra-day on a Friday.

USMint


“The United States Mint will issue its last weekly allocation of 2013 dated American Eagle Silver Bullion coins on Monday, December 9, 2013.  We will begin accepting orders for 2014 dated American Eagle Silver Bullion coins on Monday, January 13, 2014.”

At the end of 2012, the Mint also took the unusual step of halting sales of 2012 Eagles on December 20th through the first week of January, which resulted in large premium spikes of ASEs as a shortage developed.  The resulting supply squeeze in Silver Eagles also resulted in a tightening of other official mint products (Maples and Philharmonics) as well as generic silver rounds and bars as Silver Eagle demand was forced into other products.

With silver spot prices nearly 50% lower than 2012 levels, and the Mint shutting down production 11 days earlier this year (December 9th), expect physical premiums on ASEs to jump significantly over the next 2-3 months.

We will continue selling 2013 Silver Eagles as low as $2.69 over spot at SDBullion as long as we can, but suppliers are warning that significant premium increases are imminent.
-Doc


*Updated 2:30pm EST: Silver Eagle shortage already underway as primary dealer wholesalers have taken the rare step of raising ASE prices intra-day on a Friday.
  This is extremely rare and likely indicates further price increases will occur Monday as the wholesalers complete their weekly price meetings on Monday morning.

eagles

Comments

  1. Certainly isn’t a concerted effort to slow down sales or catch up to demand if they don’t have the silver available and ability to produce the record amounts of ASE’s that have been sold already. <sarc>
     
    Nothing like a little obfuscation from the US Mint to blur the bigger picture.

  2. But for a trader, now may be a good time to load up on ASE’s and then flip them when the premium spikes as demand increases.
    But the risk, of course, is that a year-end price smash will push prices even lower than your purchase price and eliminate the possibility of making a profit.

    • No, in a price drop the gains are as great or greater. You buy a 500oz monster box of Eagles today, same cost as (say) a 525 oz order of Buffalo’s or other generics. If indeed the premium on ASE jumps at ANY given time, preferably when silver is LOWER (say $16), the premium gain (say $2/oz) would translate in an OUNCE gain. In this example you’d flip the monsterbox not for 525oz but for close to 600oz of generic silver. You’re left without ASE’s, but your low premium purchase did protect you against price drop of silver.
      If silver were to rise violently, supply of all silver to tighten up (supply follows demand follows price swings), premiums of all silver would go up, but possibly even more on ASE. You could still flip the monsterbox and get more than 525oz back.
      That all said, IMO there are very RARE moments in time where it is wiser to buy ASE than any other form. I buy Somali Elephants at a lower price than ASE. And after 1 year I can flip them for 50% markup even on a flat spot price. I’d be out of my friggin’ mind to buy ASE’s.
      Yet, they find suckers to get 40 million+ of them annually. Overpaying some $1.50 each, is $60 million down the drain. Pointless premium.
      So much variety and premium groth options for silver, and peopl line up to overpay for ASE’s. How the smartest people (stackers) can be so dumb…
      Some people buy Panda and Lunar coins because China is up and coming and they’ll be into buying these at a premium later on. Who is to buy your ASE’s for any more than melt the way USA is behaving itself? Like selling a painting with a huge swastika on it, in Israel.
      Changes are, 10 years from now you’ll get more bread and butter for a Maple and even Buffalo than for an ASE. Less abundant, less negative charge. Governments have needed less provocation from other nations to boycott it. Imagine US products to be boycott (not that that would hurt US exports a lot on a nominal basis…). 

      I could go on. And will some other time.

  3. The shortage is getting a bit worse every year. Good.

  4. Curious… either way I hope deman just moves to other offerings. I’ve stopped buying government mint issue coins anyways. With the advent of SBSS, Zombucks – to me there are decently priced more interesting alternatives. Also, you never have to worry about “this is technically property of the government bullshit in an extreme case.
     
    With respect to shortages, I think the physical market is “tight” and I have said for a while, I can only imagine what mining supply is gonna look like if they keep prices low for a long time.

  5. explains why silver was hammered the last few days. easy stuff, this market. why didn’t I think of all this before hand? This market is easy to figgure. Inside knowledge of an anticipated shortages of silver and whammo, prices collapse like they have just done. A declared out loud and to the public shortage statement like this article and whammo, prices take a moonshot. 10:45 a.m. mt time silver just rocketed up 3 cents on the + side  -  ”Free Markets Rule” it says so right in the CFTC report!  Hi Ho Silver! 

    • @BigTom – You’re right, but there’s other stuff going on too.  The primary goal for this week was to keep gold and silver showing fake market signals in reaction to the Fed’s FOMC release.
      It’s interesting to note that silver’s trading suggests it has been harder to keep it down this week.  Sure, we get big spike-downs, but look at trading today as an example of what I’m talking about.  After both metals were pushed off a cliff earlier this week, the downward pressure on gold continues, as the internal sentiment of the market bleeds out more sellers during COMEX trading today.  But silver didn’t fall as much.  See the difference in the slop of the green lines below?  That speaks to a silver market that has even tighter demand than gold at the moment.  It’s just one data point, but it happens to fit with the US Mint’s action.

      Eric Dubin
      Managing Editor, TheNewsDoctors.com
       

    • .

    • Sorry for another post.  But it’s easier to see what I was talking about with the 24hr spot charts.  The below is a screen shot taken at 5:15pm EST today.

    • “Sorry for another post.”
       
      Never a problem, FW.  That’s like saying, “Sorry for those extra flakes of gold in your pan there”.  ;-)
       

    • The $23.20-40 area is big time resistance…last 2 times it has gotten there it has gotten hit $1+ within the next day or two???

      And then capped at $22 until the next bullish news comes out that drives it back to that low $23 area and, if we can get through there, seems $25.35 would quickly follow but we have failed spectacularly the last couple of times in the low $23′s

  6. Its only a matter of time until the manipulated markets catch up with the real supply and demand figures.  Its pretty sad how long this has been going on.

  7. Bloody hell they are only taking a vacation during the festive season when they are short on staff like any other business. Give me a break. Keep Stacking I am.

  8. Late in December the bears will be writing columns telling us how sales ‘tanked in December’.  More smoke and mirrors.

  9. Hmm…. No minting right through the “blackout” date in mid Nov.  Maybe the U.S. Govt. is supplying the martians riding the Comet Isis ship all November & Decembers supply of silver so they don’t suck our brains?  With a little luck, they’ll slingshot around the sun, and we won’t see them silver stealing martians for another 200 or so years?
    Phew! that was a close one! ;)

  10. C’mon, when does the gumment NOT want to make a profit?  Never.  They are OUT of silver, and have to wait for Perth (Australia) to make their blanks for them….Of course, China would be delighted to make the blanks for the U.S. Mint.  I’d be checking what you bought…BE WARNED.  If it aint real $$$ (read that junk silver) you best watch your step.  Just remember, I told you!

    • “Of course, China would be delighted to make the blanks for the U.S. Mint.”  LMAO here…..hell they could even run a sale below spot, crowd out the tungsten filled gold market and push everybody into fake silver to compete with fake gold! Then Cat Ann Fitts or somebody, on discovery, could do an interview on how it is all the fault of the U.S. citizens. Throw in an immense population reduction effort on the way, it is their fault too! waddya think?

  11. Wombat – “The primary goal for this week was to keep gold and silver showing fake market signals in reaction to the Fed’s FOMC release.” You are very right. They did an excellent job with the head fakes, speaking for myself, though experience told us otherwise. We mostly sorta kinda knew what was coming down the pike but the carrots dangling out there just hinted at the possibility of maybe this time it may be different, it may all just move higher. LOL It is a grueling game and one must give the devil his due, for entertainment value watching a writhing victim(us) getting tortured by a thousand cuts in their cunning applications, but on the other hand a sledge hammer between the eyes would do for their intent….

  12. Squeeze more silver out of private hands while the mint is shut down. Weak hands will sell with the increased premiums.

  13. Why can’t the US Mint procure its Silver from the comex?  They seem to never run out of Silver. 

  14. come on guys, they do this every year as maintenance and get a head start on  the 2014′s who go onsale in early January.

    Look how many they sold last year on day 1 = 7M or something ridiculous like that so where do you think those new dated coins came from? They were certainly not minted in 10 days if it takes 10 months to get 30M+ ;o)
     
    Nothing new here, most dealers are more than stocked…it just begins a little earlier every year since the NGC/PCGS label craze, i.e. first day of issue, first strike, early releases, box 1 of xx, etc. so everyone wants the new date NOW!

    Keep your eyes open for opportunities, though, sometimes you can trade the current for back years and collect a little premium near Christmas if the smaller dealers are already out of the current year and need some for stocking stuffers, etc. but don’t want to place a larger order with their wholesaler that late in the year.

  15. just buy maples at record low premiums right here on SD

  16. good for you Mikey .9999 silver from C and supporting the Doc and this site. Maples are so pure they have to be hermetically sealed.
    As for the mint, D.D.S.S.
    The US mint has run itself into the lying assed dog BS MOPE cess pool as the rest of the gummint.  It’s competitive septic tank turd diving and Le Cess pool synchronized swimming events, judged by Christine Le Gard, the head of the IMF and Olympic syncho swimmer.  If the Mint shuts down due to force manure or anything else, then the FIAT will be in the fire.
    I will be posting less the next two weeks so as to give readers a rest from long windedness. Here’s an hour a day back to all y’all
    Back to you Mary B.
    Cheers.
    As for the US Mint  Here’s a big glass of fukitall.  I don’t give a rats ass about the mint or the rest of the gummint.  Liars all.

  17. I have a nice even disposition silverrrr.
    With the government in session, I am cranky all the time   Kauai will work its magic soon enough,once I slough off the TSA traveling blues.
    In my  post on Willie about the TSA,  I forgot to mention that they stole my wife’s 9 oz tube of toothpaste.  
    SOBs, I guess they need to clean some cavities.  
    When they’re done with that search, someone’s behind will be sparkling fresh
     Does flouride cause hemmorhoids?
    Hope not. 
    TSA, the only Fed agency that has job fairs between a Jenny Craig office and the sheltered workshops.
    As for Maples.  I hark from Canada so have a certain appreciation for many things Canadian such as Maples.
    As for the Queen, I’ll defer to the Beatles tune, ‘Her Magesty’s a pretty nice girl, pretty soon I think I’ll  make her mine’. 
    Got Paul a KBE
    Buy Maples;  get a free picture of Queen Elizabeth
     For a limited time only.

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