Lower Demand for Silver Eagle Bullion Coins

aseAt 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
January                              4,775,000
February                              3,750,000
March                              5,354,000
April                              3,569,000
May                              3,988,500
June                              2,692,000
Total                            24,128,500

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.

Facebook Twitter Email

Comments

  1. HIdalgo says

    I am not the least bit surprised. I previously mentioned that investors have been shifting their money from precious metals to stocks. As long as the economy continues to hum along, we should see stocks continuing to rise and precious metal values fall. However, there will be a point in time when the return on investment in stocks and precious metals will be low or relatively low. When that happens, investors will seek other profit-making opportunities, e.g., real estate, collectibles, etc. and move their money into these areas.

    The sad thing is that some folks invested in silver bullion a few years ago as if silver prices would rise indefinitely. Silver was selling for $45 + at one time (during early 2011). Currently, silver is selling at less than half that price. Those who bought high have been burned…. Well, lesson learned. We all make mistakes. If we didn’t most of us would all be millionaires…. 🙂

  2. GMS says

    The economy will stop “humming” when the Fed stops flooding the market with bogus paper! So hold on to your already overvalued stocks and see who is better of this time in a year.

  3. stephen m says

    Nothing good last forever including sales of silver eagles for the mint. Metals and stocks do rebound from lows. Stocks do better as an investment than metals IMO.

  4. says

    Equities markets have all the forward guidance they could ever hope for. The smart money is in stocks. I however believe the prices we’re seeing for precious metals is not bad and may even be sustainable. It’s funny how so many people will buy the high and sell the low, just crazy!

  5. says

    @Dustyroads, “It’s funny how so many people will buy the high and sell the low, just crazy!” So True. That is why the majority of people can not successfully TRADE the market. Fear and Greed drive just about any market…

  6. Donald Frump says

    “Central banks hold 29 trillion in stocks? Give me some of that, cuz the central banks are such benevolent creatures!” –j6p

  7. says

    I’m not surprised we’re finally seeing sales slow down a bit with silver prices having begun to gradually rise again. Most likely, investors are waiting to see whether the climb continues or whether there’s another price fall in store. If we get another big “smashdown” to the $15 range then we’ll likely be in for another few months of binge-buying.

    Hidalgo,

    After the huge contraction we had last quarter, I’m not sure it makes sense to claim “the economy is humming along.” I think what’s happening must is for some other more market-specific reason.

  8. Clark says

    As expected, the mint started to ship BHoF gold proofs following the conclusion of its quarterly inventory Sunday night. My 3/27 11:15 p.m. $5s just shipped today after being IS&R for almost two weeks.

  9. Sith says

    This is just the normal Summer slow down…June is one the slowest sales months at least based on highs. The highest mintage for June was 3.4 million in 2011 only October is lower with a high of 3.1 million in 2012. Things tend to pick back up toward the end of July.

    Personally I think people are just waiting to see if the latest price spike will dissipate, no sense in stacking at $21 when you can buy at $18 in a few weeks.

  10. says

    Sith,

    Agree with your post. I had tried to comment earlier on the price spikes when my posts kept getting “eaten” – I think people are pulling back and waiting to see whether the price spike is real or whether we resume our downward moves towards $15.

  11. fmtransmitter says

    the mint knew sales would slow, very smart because they are in process of a new reverse design for them…sales will boom when a new reverse is made…we can’t help it, were addicted!

  12. hw says

    Off Topic. MCM is having a private sale on BHOG PCGS coins that they purchased from another dealer. Must use links in e-mail. Examples:

    $5 GBHOF PCGS PR/MS 70 First Strike $999.
    $5 GBOHF PCGS PR/MS 69 First Strike $699

    Sorry. Don’t know how to forward MCM e-mail.

  13. Hidalgo says

    @Stephen – you’re absolutely correct. Stocks are better investments in the long term. I invested in stocks years ago. Sure, the market goes up and down, depending on the economy, world conflicts, etc. However, in the long term, the average stock portfolio tends to appreciate much more than the average coin (precious metal or otherwise) portfolio.

    My stock investments, made years ago, have done exceedingly well. In fact, my stock portfolio is worth more than the value of my home.

    I collect coins because I enjoy it as a hobby. I am not into coin collecting for profit. I do sell coins when I need to downsize my collection.

  14. Sith says

    My silver BHOF finally shipped, 3 months to the day after I ordered it. My ATB is about to ship as my credit card just got pinged.

  15. Hidalgo says

    By the way, in case anyone is interested, Modern Coin Mart has/had a fantastic sale on 2014 W National Baseball Hall of Fame, PCGS MS69 and MS70 – First Strike gold coins. I bought one for $999. To me, that’s a real deal considering the ones on eBay and some online coin shops are selling the same coins at significantly higher amounts.

    The sale also includes silver and clad coins, graded by PCGS as First Strike MS69 and MS70.

  16. gary says

    Just got my single Arches P-Mint 5 ouncer from the Mint today. WOW! What a stunning design in the vapor-blast finish!!! Not to mention a great (and cheap at the subscription price) to get 5 oz. of pure silver.
    @Captn-O: I think that silver is more likely to go to a level of $23-$24 per ounce than reach a low of $15. Should that happen, look for the Mint to jack pricing on the ATB P-mints later this year or in 2015. Either way I’m hooked & OK with it as I have one of the few full complete sets of the ATB P-mint 5 ouncers. Wish I could’ve done the regular bullion issues as well but moths continue to fly out of my wallet!

  17. says

    gary,

    I am basically satisfied either way the price moves. If it goes down, I get cheaper coins, and if it goes up what I have is worth more and I can potentially look to make some money. To be honest, I’d been hoping the low levels we had would hold until the gold Kennedy was released.

  18. Sith says

    CO,

    I’m in your boat I’m hoping prices will stay low, but based on movement I will say they are going up. I just picked up a Shenandoah as they are temporarily sold out just to safe.

  19. thePhelps says

    @gary – the mint might jack the price up at $25 but that is near the price range they dropped the price of the ATB to the current $154.95… I think it will need to trigger an increase.

    I am still trying to figure out where the economy is humming – and think the expansion looks like a contraction acording to the recent statisics I’ve seen. Might even relate a little to the fact that the FED is taking month bites out it. The fact that the stock market is humming along is totally contradicting most pointers and it can’t be good when the skid marks hit..

  20. thePhelps says

    Should have said it might need to be higher to trigger the increase… got interrupted in the process of typing…

  21. JOSEPH says

    Wow, money flows to stocks. sounds like the dot com boom. what do you call this “boom”. $ carry trade boom? interest free boom. watch out, don’t get burned. LOL. because I know, for every boom, there is a bust. and most so-called investors(I called them suckers) will say that ain’t happen to them. hmm… heard that in late 90′ and 2000. LOL. History will repeat itself.

    “…
    I am not the least bit surprised. I previously mentioned that investors have been shifting their money from precious metals to stocks. As long as the economy continues to hum along, we should see stocks continuing to rise and precious metal values fall. However, there will be a point in time when the return on investment in stocks and precious metals will be low or relatively low. When that happens, investors will seek other profit-making opportunities, e.g., real estate, collectibles, etc. and move their money into these areas.

    The sad thing is that some folks invested in silver bullion a few years ago as if silver prices would rise indefinitely. Silver was selling for $45 + at one time (during early 2011). Currently, silver is selling at less than half that price. Those who bought high have been burned…. Well, lesson learned. We all make mistakes. If we didn’t most of us would all be millionaires….

  22. VA Rich says

    50th Anniversary Kennedy Half-Dollar Uncirculated Coin Set (K14)

    Posted to Upcoming Products page

  23. VA Rich says

    This product will be available for sale
    on July 24, 2014, at 12 noon (ET).
    Mintage Limit: None
    Product Limit: None
    Household Order Limit: 5
    Available by Subscription: No
    $9.95

  24. Sith says

    No the really sad thing is when the stock market tanked in 2008-2009 everyone who bought at the highs was told to hold tight, until the stock market rebounded, but somehow people who bought PMs at the high’s got burned, you can’t have it both ways either stocks burned people in 2008 and PMs in 2011 or they did not not burn anyone with a “buy and hold strategy.” Of course the logic is somehow stocks will always rebound but PMs always fall…

    FYI it does not matter what you invest in it can be stocks\bonds\property\PMs, it does not matter everyone is a currency trader as IMHO none of these investments are following fundamentals all that maters is how much currency the Fed (dare I say the ECB or BOJ) is pumping into the economy that month.

  25. Steve says

    I grabbed an MS70 FS $5 Gold from MCM for $999. Even though the prices are dropping somewhat, the uncirculated gold in MS70 FS has a low population and should always command a nice premium.

  26. says

    @Sith, Thanks. Wow.. household limit of 5 for something that only costs $9.95? They let you buy 50 of something that cost $424.75 and only 5 of something that cost $9.95. I guess that tells you that there will be a 1 household limit on the Gold and something between 1 and 5 for the Silver. Doesn’t make a lot of sense…But then again…

  27. KEITHSTER says

    Ya that seems a litte strange you could buy BHOF’s at 50 each but a limit of 5 for the cheap Kennedys ouch:( Surely this will be lifted once the big boys get all they need and sock it to little joe? My S mint GB’s do have the prizm effect but not as good as the D’s ? Glad to here most have good Arches:) Good Luck As Always:>:>:>

  28. Sith says

    The household limit must be for the presentation folder, then again the mint always goes to extremes, as they tend to underestimate\overestimate demand for their products.

  29. VA Rich says

    Cag – that’s exactly what I was thinking, doesn’t a 5 set household limit on the clad change things up a bit!

    I was just joking about loading up the bus full of hooter gals and heading to Chicago, though this dealer certainly isn’t! I’m sure he’s not alone…

    “It’ll be pandemonium,” one dealer told us. The aforementioned Mr. Timmons plans to bus in dozens of “assistants” to stand in line at the ANA to buy as many examples as the Mint will allow. Expect a repeat performance of the quick sell-out we saw in March, and if the Mint isn’t able to keep up with the inevitably high volume of orders, then expect another industry-driven modern market bubble*.

    http://www.coinweek.com/commemoratives/whitman-expo-baltimore-show-report-part-2/

  30. Eagle One says

    Maybe people are getting tired of buying spotted West Point Minted Silver Eagles. Since 2012, the BU & UNC Silver Eagles produced by the WP Mint have been heavily spotted. Something is going on in their process that causes spots. These spots look like water spots that grow and show up after the coins have been processed. I think WP is rinsing their finished coins or blanks in hard water or their water supply is possibly contaminated. They should be using Reagent Grade Deionized Water in their process. Almost all of the 2012, 2013, and 2014 Silver Eagles that I have purchased are grossly spotted. Especially the W Burnished Silver Eagles. The 2013-W Enhanced Silver Eagle has problems with spots too. When the 4 Coin Silver Kennedy Set comes out, expect the West Point Coin to be spotted and the others (P,D,& S) to be relatively spot free.

  31. Sith says

    @VA Rich – I maybe misreading you but I don’t see pandemonium for clads especially one without a mintage limit, now when the silver and gold are released that is another matter.

  32. says

    Looks to me like the Mint is going to have thousands and thousands of ‘new’ customers. Well actually old customers just using other people to purchase coins for them. The cheapest shipping will be 10% of total outlay so the USPS/FedEx/UPS will be winners. We’ve always known that the Big Boys found a way around the household limits, now it looks like the Little Boys will do the same.
    I can see someone just setting down with a phone and having different credit card numbers from friends just calling back to back to back orders in.

  33. Ray says

    Wow, things just got really interesting. Household limit of 5 sets of unc kennedy halfs? Strange, for sure. Should be great for collectors. I know I went from pass to buying 5 in a heartbeat. I wonder what the silver and gold limits will be? I’m really happy the mint is putting limits on these. I love it!!

  34. TheCoinKeeper says

    Currently showing shipping date for some silver BHOF proofs backordered expected to ship 6/26. Cancel button still showing. That makes no sense.

  35. Sith says

    About Changing Shipping Dates: We are experiencing technical difficulties with the part of our system that displays the expected ship date for your order, causing the dates to move incorrectly. Please be assured that orders are being fulfilled according to our standard policy. This issue will have no impact on the actual shipping dates. Thank you for your patience as we work toward a solution

  36. Clark says

    I’m a big fan of a diversified portfolio, but I don’t collect stocks, I just own them because I have to. My stocks have done well over the years, but I don’t really enjoy buying them, managing the mix or looking at them. I get very attached to most of the coins in my collection…even my 2011 ATBs that are now worth half of what I paid for them. I also get attached to the firearms I collect, although they hold their values pretty well. My unfired nickel plated Colt Pythons have doubled in value since I bought them two years ago and I wouldn’t think of parting with them or other Colt revolvers in the collection.

    I guess many of us collectors just collect what we like and are pleased if collectibles appreciate over time. If they don’t, well, we still enjoy owning them and the prospect of passing them along to family who might continue the collections.

  37. Samuel says

    talking about collecting and stock. does anyone collect the real, paper, stock certificate?

  38. Ray says

    I’m happy with the initial 5/product household limits. Hopefully this will help with getting the coins distributed better/quicker.

    Am I the only person who despises “coin dealers”. To me they seem like what travel agents were before the internet. They’re not necessary, and in my mind, they are equal to HSN, just trying to make a buck, no matter what it takes. I hope that one day the term “coin dealer”, becomes a thing of the past. They will be big time collectors at that point. Maybe they’ll actually get real jobs and create and contribute to society.

  39. says

    Looks like limit of 5 for ALL products. “All purchases of these products will be subject to an order limit of five of each product per household. The bureau will re-evaluate the order limit as necessary over the period these products are available for sale.”

    Pertaining to the Silvers: “The United States Mint is scheduled to release this in the fall of 2014.”

    http://www.usmint.gov/pressroom/?action=press_release&id=1592

  40. says

    You can buy 5 @$9.95/ each, 5 @$99.95/ each and 5 @ approximately $1,300.00/ each (my guess). I guess a little something for every budget.

  41. thePhelps says

    Good to see the mint put limits on these! With no production limit – and the end of the year for production to end – it might not be a totally stupid offering.

  42. says

    @thePhelps, Where are you seeing that? On the Clads I see “This product will be available until sold out.” I don’t see anything on the Golds or the Silvers…

  43. says

    Alright, I know that it is off topic, but the Arches 5 oz is spectacular. Delicate Arch really pops in the coin’s detail. I think that focusing on one natural structure gives this coin a lot of appeal. It gets my vote for the best ATB puck.

  44. thePhelps says

    cag – I was assuming like most other “commemorative” type offerings this will end at the end of the year. Granted this isn’t a true commemorative coin…

  45. thePhelps says

    @Hawkster… I think it goes into the meh bucket… since the background is blasse to me and yet takes up half the coin. I’d rather have had multiple arches – instead of a indistinguishable mountain … but to each their own.

  46. Hidalgo says

    I have always liked the Kennedy half dollar. I remember the day when the former President was assassinated. This “commemorative” coin will always be very special to me.

    It’s great seeing that folks are taking an interest to the new offerings. As interest shifts from the Baseball Hall of Fame coins to the next “hottest” offering by the US Mint, the number of posts on this blog will certainly increase.

    I am certain that many coin dealers have their staffs gearing up to place orders early so that they can have their coins labeled as “First Strike” or “Early Releases. Be prepared for more excitement as ordering day arrives….!

  47. Clark says

    @Samuel–Paper stock certificates are a dying thing as most investment banking firms charge a huge fee to produce a stock certificate IF companies allow paper shares. Electronically held & negotiated shares understandably have pushed paper certificates to the brink of extinction.

    There was something special about holding an actual engraved certificate of stock ownership. Often, the certificates were works of art in and of themselves. A coin shop in Denver I visit still sells old and worthless stock certificates to collectors.

    An outfit called OneShare.com sells one share of stock in some of the most visually appealing companies, like Disney, Coca-Cola, Tiffany & Co., et al. and will send you the actual stock certificate in a frame. I’ve given a few as gifts over the years and they’ve been very well received.

  48. gary says

    @thePhelps… yeah, multiple arches! But it would also need a windmill and a putter to give it scale. Could’ve been a Miniature Golf Commem!

  49. mgm says

    Coal, coal… Buy coal… I heard on an interesting website that when the market (stocks) correct, only 20 percent are in it, that the other 80% won’t be able to step in to buy cheap, BECAUSE THEY DON’T HAVE ANY MONEY AND THEY ARE’NT IN IT. That means it going to fall hard.

  50. says

    ThePhelps,

    Sometimes, as is the case with the Arches ATB, less is more. I just like the uncluttered look that this coin possesses. It enables Delicate Arch to be the focal point.

  51. says

    Hidalgo,

    Will the Kennedy P&D clad half dollars in the upcoming clad uncirculated set be any different than the the ones that are currently available in the 2014 Mint uncirculated Set?

  52. VA Bob says

    Samuel, if you’re reading, I responded to your dipping question on the previous thread.

  53. Jerry Diekmann says

    Ray – about coin dealers – some are good and some are bad, just like all people. I would choose a smaller dealer over a bigger dealer any day, though. They are much more friendly, willing and able to shave some %’s off a coin, and you actually talk to them. The big dealers don’t give a hoot about you – they couldn’t care less about you or your collection. My thoughts are based on 50 years of collecting.

  54. Ray says

    I wonder how hard it will be to get a ms70 clad D Kennedy from the special unc sets.

  55. Bobo says

    The majority of dollars exist outside the US. As the dollar loses its reserve currency status, as is happening gradually now, expect these to flood back to the US in search of buying things like stocks and real estate. The stock market is not only zooming higher because of the Fed’s electronic creation of cash out of thin air to buy stocks via its favored banks/owners. We may be witnessing the beginning of a tidal wave of foreign dollars coming back to the US and going into stocks and other assets. As the Russians, Indians, Chinese etc. no longer need dollars for trade, because of their recently set up bilateral trade agreements in local currencies, there are a lot of Russian and Chinese dollars coming back to the US in search of buying anything (dumping the dollar for stuff). Note that the Fed and BIS might be worried about this and actually trying to talk the market down. Long term this could result in an ever increasing torrent of dollars coming back to the US, which might look to the man in the street like inflation at first, and then massive inflation. Stocks might be zooming up in nominal terms now, but keep in mind that that was also true in Zimbabwe. A natural hedge for this grim scenario is owning PMs, including in the form of coins.

  56. A&L Futures says

    Don’t know if anyone caught this (or cares), but the 2014 American Eagle One Ounce Platinum Proof Coin has moved from a tentative release date in August to: “On-Sale Dates and Prices To Be Determined.”

  57. VA Rich says

    JFK Pricing from the Fed Reg pre-look –

    $1300.00 to $1349.99 ¾ Troy oz. – $1,277.50

    $1350.00 to $1399.99 ¾ Troy oz. – $1,315.00

  58. VA Rich says

    Oh, and I just know someone is going to ask, the above pricing is for the one that is not comprised of clad or silver! 😉 Happy Hump Day for those slaving away!

  59. longarm says

    Lower demand for silver eagles? Duh, everyone I know is broke and trying to just survive.

  60. Mark Rex says

    I think some of the slow down in ASE is due to the rapid increase in other world mints bullion coins.

    @fmt; usmint is ok for me I was able to browse, login, ck orders

  61. says

    One thing that has not been commented on is the packaging for the Gold Kennedy. Every time I do a survey with the Mint in the ‘suggestion’ box I list more than one suggestion. One suggestion is always that when they do the Gold Kennedy that they do something similar to the Buffalo. For those that have never bought an OGP Buffalo it is nice packaging. Looks like the Gold Kennedy will be done the same as the Buffalo. Here is the comment from the Mint’s press release:
    “The encapsulated coin is packaged in a single, custom-designed, brown mahogany hardwood presentation case with removable coin well.”
    The Mint should do the same for the Gold 1 oz American Eagle. Anytime you spend that kind of money on one coin you need something better than a little blue or tan box…

  62. JOSEPH says

    It is really interesting to see so many flippers (stock, commodities, PM, coins, etc.)here about their way to make ‘BIG’ bucks. Unfortunately they will lose their shirts before that “Big” bucks coming. The good thing is they can keep dreaming…. LOL

  63. Chief943 says

    Bobo-It’s nice to see someone out there gets it and understands what is actually going on. Since I agree with I am of course in PMs accumulation mode, and I’m surreptitiously sneaking in a numismatic item every now and then to scratch my old collecting itch. Those 5oz ATBs are what I’m buying now, having bought a bunch of gold coins and silver eagles already.

  64. fmtransmitter says

    Never stop dreaming Joseph, if you do, may as well bury me 6 feet under….

  65. Chief943 says

    A general question: I have noticed some of the 5oz ATBs that are slabbed by PCGS saying they’re in “BU” condition. How does this compare with MS-68/69/70? Why do they grade something without using the number scale?
    Thanks,

  66. GoldFishin says

    @Bobo – late to the party been on vacation, Excellent post…as someone else mentioned, it is really nice to hear somebody that really has the big picture insight, instead of having to read through some of these posts by economic talking point zombies.

Leave a Reply

Your email address will not be published. Required fields are marked *