subject: Us Mint Grapples With American Silver Eagle Demand [print this page] The United States Mint first issued the American Silver Eagle bullion coin in 1986. This represented the release of the first silver bullion coin with weight, content, and purity guaranteed by the United States government. The coins were immediately popular with precious metals investors and coin collectors alike, selling more than 10 million coins in the first two months of availability.
The United States Mint has produced Silver Eagles in both bullion coin format as well as collectible proof format. The bullion coins are distributed through a network of authorized purchasers and sold based on the prevailing price of silver plus an established mark up. The proof versions of the coin are typically offered annually at fixed prices. These coins are sold directly to the public and come in special packaging with a certificate of authenticity. Proof Silver Eagles had been issued from 1986 to 2008, before the offering was unfortunately canceled in 2009.
The popular proof Silver Eagle had been canceled for reasons related to the economic turmoil which occurred at the end of 2008. In the search for safe haven investments, some turned to physical precious metals, an historic store of value. This caused increased demand for the Silver Eagle bullion coins, and the United States Mint had difficulty coping. By law they are required to produce the coins in amounts needed to meet the public's full demand.
In order to cope with the situation, the US Mint suspended bullion coin sales on several occasions and allocated rationed available supplies to authorized purchasers. An additional step, which was not popular with collectors, was the cancellation of the traditional collectible proof and uncirculated versions of the coin for 2009, since these are not required to be produced under current law.
Heavy demand for Silver Eagle bullion coins has continued into this year. Although the US Mint managed to increase production numbers, they still fall short of the full public demand. For the year to date, the US Mint is selling an average of 3 million coins per month. The status of collectible versions of the coin remains in doubt, although there has been some discussion of a change in law that would allow the coins to be produced.
by: Michael Zielinski..
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