At the start of November, the U.S. Mint made a decision that has impacted the premiums of the Silver Eagle. The Mint let the world know that its last allocation of American Eagle Silver Bullion coins for 2013 would occur on December 9, 2013. The news came as a shock to many, because at the time of the announcement, the country was only slightly more than 80% finished with the 2013 calendar year. The four-week suspension of sales has retailers scrambling to fulfill orders, on a rapid increase in demand.
They continued on to say they would begin accepting orders for the 2014 Silver Eagle, beginning on Monday, January 13, 2014.
The Shrinking Silver Supply
The news caused a significant rise in Silver Eagles premiums, as many investors were attempting to interpret what this halt in production could indicate. Many investors believe it’s related to the Mint’s attempt to continue to tighten the available silver supply.
Throughout 2013, the Mint has been working to limit the amount of Silver Eagle coins produced, relative to demand. During 2011, there was a record set for the number Silver Eagles produced, but 2013 has already shattered that existing record, and sales have completely surpassed any expectations.
Wholesalers Struggle to Fulfill Orders
In addition to the announcement of ending production, the U.S. Mint also made an unexpected move when it cut allocations of the Silver Eagle to authorized purchasers by half. As a result, not only has the supply of Silver Eagle seen a serious squeeze, but wholesaler delivery dates were also pushed back.
Often, November and December are viewed as the most popular time for gold and silver investors to make purchases, and suppliers are scrambling to fill orders, even as the Mint continues to make Silver Eagles less accessible.
The Silver Eagle Advantage
In spite of the higher premium, investors continue to seek out the Silver Eagle, primarily because of its .999 percent makeup of pure silver, and its stamp of authenticity from the U.S. Government. The Silver Eagle, along with its purity, is easily identified and authenticated, making it an ideal option for investors. Because of this trusted reputation, the Silver Eagle holds its value, even in the face of challenges to the silver market, making it well-worth the high premiums in the eyes of investors.
Despite the fact that Silver Eagle sales have already surpassed 2012 sales by more than five million coins, we still have Silver Eagle coins available. Due to our own unprecedented access to industry insiders, we’ve been able to hold onto a steady supply of Silver Eagle coins, and we anticipate the ability to fill orders through the year’s end, although it is important to note that as with any very sought-after coin, our supply isn’t endless. While our customers will experience the hike in premiums that is unavoidable in times like these, when the Mint makes these types of announcements, we are one of the few providers able to fulfill orders at this point in time.