At the start of the month, the US Mint lifted their allocation program for Silver Eagle bullion coins, which had previously limited the number of coins that authorized purchasers could order. Rather than opening the door to higher order levels, sales figures for the most recent month have fallen to their lowest level of the year.
For the month of June 2014, Silver Eagle bullion sales reached 2,692,000 ounces. This is down from the prior month when sales were 3,988,500 ounces, and also down from the year ago period when sales had reached 3,275,000 ounces.
|2014 American Silver Eagle Bullion Coin Sales|
Based on recent testimony delivered by the United States Mint Deputy Director Richard Peterson, the demand for silver bullion coins worldwide had shown signs of weakness within the last two months. He offered the possible explanation that “investors apparently have focused more on other competing investment classes.”
The resulting combination of increased production and decreased demand finally allowed the US Mint to end their allocation program.
When Silver Eagles are subject to allocation, it is not possible to determine market demand based on sales figures alone. The monthly sales levels are more a reflection of current production levels, with the extent of additional unmet demand unknown. With allocation lifted, sales figures from June onwards should provide a clearer indication of full market demand for the silver bullion coins.
At the half year mark, Silver Eagle sales have reached 24,128,500 ounces. This is slightly lagging compared the year ago period when sales had reached 25,043,500 ounces after six months. Last year, Silver Eagle bullion sales went on to establish a new annual record at 42,675,000 ounces.