Market Continues To Purchase “All” Allocated Silver Eagles From U.S. Mint

As sales of Gold Eagles remain subdued, the market continues to purchase every available Silver Eagle from the U.S. Mint.  Since the beginning of the year, the U.S. Mint has sold its Silver Eagles on a weekly allocated basis.

This means its authorized dealers are limited to the amount of Silver Eagles they can purchase each week.  Michael White, the Public Affairs person for the U.S. Mint, told me that in order for the Mint to build up inventory of Silver Eagles, it has to ration sales to its authorized dealers.

For the second week in February (10th – 14th), the U.S. Mint allocated 900,000 Silver Eagles.  At the beginning of that week, total sales were 850,000.  By Friday, the 14th, total sales reached 1,750,000.

The next week, Mr. White stated in an email that the allocated Silver Eagle amount for the third week (18th – 21st) were 750,000.  I believe this lower figure was due to the Presidents Day Holiday making it a four-day work week.

The U.S. Mint updated its figures on Friday, the 21st:

Silver Eagles Update 22114

Here we can see that the authorized dealers bought every available Silver Eagle for the week.

The U.S. Mint just updated its sales figures today (Feb 24th), with an astonishing 744,500 Silver Eagles sold in one day:

Silver Eagles Update 22414

I noticed in the past several weeks, 80-90% of the total allocated weekly Silver Eagle amount was sold on the first day of the week.  Just when I was getting ready to include my next chart in this article, I checked the U.S. Mint website to see if they updated their Gold Eagle sales.

I wanted to make sure that I had the most current Gold Eagle sales figures for my Silver/Gold Eagle ratio chart.  When I updated the U.S. Mint’s Bullion figures, they sold an extra 81,000 Silver Eagles — within the hour.

Silver Eagles Update 22414 Second Update

Including the second update, the U.S. Mint sold 825,000 Silver Eagles today.  I emailed Mr. White to see what the weekly allocation of Silver Eagles will be this week.  He replied stating the total allocation figure for the week to be 1,250,000.  I will provide an update on Friday to see if the authorized dealers consumed the total amount.

Furthermore, the current 3,325,500 February Silver Eagle sales figure, is only 43,000 less than last year’s February total of 3,368,500.

I have to say, this is the largest amount of Silver Eagles sold in one day if we exclude the first day sales in the beginning of 2014.

SILVER EAGLE MARKET:  Red Hot

Even though the huge amount of Eastern gold buying continues to steal the show, retail investors are purchasing more Silver Eagles to Gold Eagles than ever.  If we take a look at the chart below, we can see a definite trend:

U.S. Mint Silver Gold Ratio

In 2010, the U.S. Mint sold 34.6 million Silver Eagles and 1.22 million Gold Eagles for a ratio of 28 to 1.  Each year, the ratio has increased.  Last year, the U.S. Mint sold a record 42.6 million Silver Eagles compared to 856,500 oz of Gold Eagles.

Thus, the Silver to Gold Eagle ratio increased to 50 to 1 in 2013.  So far this year, the U.S. Mint sold 8.1 Silver Eagles and 116,000 oz of Gold Eagles.  Investors are currently buying 70 Silver Eagles to every Gold Eagle.

It will be interesting to see how 2014 unfolds.  As the Chinese continue to consume nearly 100% of the annual world gold mine supply, the paper precious metal trading exchanges will come under severe stress.

Supplies of physical gold and silver will become tighter as the global financial system weakens.  In the future, as one metal suffers a shortage, I would bet my bottom silver dollar, investors will soak up supply of the other.

Time is running out for investors to protect their wealth in gold and silver.

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23 Comments on "Market Continues To Purchase “All” Allocated Silver Eagles From U.S. Mint"

  1. Frankly, the only difference (to me) between silver eagles and gold eagles is color…they both come from the same place and without the former we wouldn’t be having this discussion.

    Perhaps that sounds ridiculous…or just that simple.

    No silver, no technology…it is just that simple. Soon, energy will not be used recover pm’s in any way.

    Silver is the underdog. It gets less than no respect. Great work as always Steve.

    • I hear there’s an app coming out so you can power heavy mining machinery with your iFone. You just charge it up with Buttcoins.

      • To be clear…

        PMs are a store of wealth…

        Bitcoins (or similar) are a currency (a cryptocurrency)…

        Get used to the concept caveman…

        • lastmanstanding | February 25, 2014 at 1:50 pm | Reply

          A currency developed out of nothing. You globalists crack me up…lmfao!

          Oh wait! Mt. Gox has disappeared!? All gone it appears. Millions stolen…Stories all over from Google, Reuters, Bill Still. Hope you didn’t get burned…NOT!

          By the way, I am a caveman. Tech is nearly over with and those of you who need it to survive are screwed. wtfu.

          Come back to earth spaceman.

          • I glad you used your computer to claim the demise of technology…

            Cryptocurrencies ARE the answer to the globalist banker corruption/control…

            Yes they (these new currencies) will be volitile.

            MtGox is gone (maybe) – but their currency is still there – GO GET IT.

            … “These talkie movies will never last” … Vaudville …

          • lastmanstanding | February 27, 2014 at 4:06 pm |

            Just a tool that I currently USE to MY advantage… whose days are numbered.

            The earth would be a far better place without computers.

        • Bitcoin is a digital daydream backed by a fiat fairy tale. When will everyone wake up?

      • hey lastmanstanding,

        I don’t want to be confrontational – I believe (mostly hope) that a new currency – free (as much as possible) from government & bankers control – could be developed. The latest try is the bitcoin – based on a computer generated formula where on a certain number can be “mined”. Therfore no entity (Federal Reserve, U.S.Gov’t, JP Morgan) can have control (in theory) over this trading currency…

        They (the globalist contollers) are afraid of cryptocurrencies for that reason – all the more reason we (the people) should support it – or something similar.

        I own one bitcoin (actually 1.02570118 bitcoins) – I’ve made purchases through overstock.com, transfered funds (back & forth in dollars) to my bank.

        I will continue to trade in bitcoin – again, using it as a currency – NOT AN INVESTMENT.

        Right now if my “coin” somehow disappears… well, that’s my 500 dollar experiment.

        Tell you what – look into getting 0.18939393 btcoin… ~100 US Dollars… and begin trading.

        This (people) driven currency is not going away…

        – enjoy the ride, Imagine…

        • Hey Imagine,
          1st of all, more power to you with your digital currency. I applaud the experiment. And I agree the genie is out of the bottle with digital currencies so they are not going away.

          You missed my point earlier, and maybe the point of this blog. That is technology is not rescuing this situation in any way whatsoever. The Moore’s law that Kurzweil and others (including me) are so excited about is NOT playing out in energy production. You may see the exponential function in DNA sequencing, robotics, data analysis etc… but instead you see the downside of Hubbert’s curve in energy production. That means you’ll see deflation in stuff that has no intrinsic value ( Bitcoin) and inflation for everything you need (like food & gasoline).

          • True, but I foresee that bitcoin will be based in physical commodities like Gold & Silver (relating back to the article)….

            Physical…

            Follow Me…IF Gold & Silver were priced in true WITHOUT MANIPULATION… Think about it… They would go back to their natural (in nature) price ratios… Let’s call it 10 to 1 (Silver to Gold) for ease of conversation & math…

            So… You want a set price… 1 ounce of Gold = 1 bitcoin (if you still need to think dollars, then $1334 (right now…)…), thus 10 ounces of silver would be 1 bitcoin, so (again in US Dollars) 1 ounce of Silver would about 133, which, to be honest with you is closer to the TRUE UN-Manipulated price of silver… you know IT SHOULD be even higher (Let’s say 1 ounce of Gold = 1 bitcoin = $2500 US FIAT, therefore 1 ounce of Silver should be $250 phoney U.S. FIAT Dollars.

            No …???…

            Deflation of bitcoin would happen if there is loss of confidence in this system. MtGox is a Prime example (but those “coins” are not gone… MtGox (maybe), but not the coins that are already “mined”)… There will be more hits, attacks, gov’t controls, bank involvement, but, I believe this is “organic” as we are going to get… A FIXED currency (not wealth)… That has an intrinsic value placed on “it” but the people… GLOBAL…

            Want more… listen to what Max Keiser has to say:

            http://www.youtube.com/watch?v=WQx-3jO-AIU

            Rojelio, are you thinking about using a cryptocurrency, or are you against it? … As a currency (NOT an investment…)…

        • @ Imagine,

          No I am in no way against Bitcoin and I believe many new young entrepreneurs will run with this idea in ways that people don’t even realize yet. I also find the spin-off effects to be fascinating, like for example the furious development of faster chips to better mine the coins.

          For most folks however:

          1. I don’t think it has intrinsic value
          2. People don’t need the uncertaintly and volatility we see in Bitcoin right now
          3. I don’t see how the small guy can mine these things competing with giant servers, so the small guy is already shut out in many ways.
          4. It’s completely reliant on the grid which may not be reliable at some point moving forward.
          5. If you think you’re anonymous and free using your bitcoin, you’re dreaming.

        • lastmanstanding | February 27, 2014 at 5:10 pm | Reply

          Imagine…No sweat, a bit of shit back and forth is a good thing. I like it when someone stands their ground and flings a bit of poo. Rojelio was flipping a bit of sarc at me. (above)

          I just don’t believe that bitcoin, tech, etc. is headed forward. Energy as we know it fossil fuel, coal, etc. is declining rapidly. TPTB are destroying the earth, killing millions of innocent people and pissing the rest of those who “just want to be left alone” off.

          I won’t bore you with the hockey stick graph as I know you are aware of it. What I will say is that anything sent via a keystroke can be seen by those who have designed it. The last 30 years the “stick” reveals the biggest fucking waste of energy that there will ever be in the history of mankind. IMO, hundreds, maybe thousands of years of fuel have been wasted because a handful of satans greedy little minions want to control everything.

          They have selfishly bought up and rat-holed any and everything idea that may have given us cheap, easy, earth-friendly energy. It is hard to believe that we can create all of this enslaving tech, nuclear weapons, military industrial complex and not be able to have designed/built a roof system to collect the suns rays to heat our homes and water. Frankly, I believe that solar panels were the worst of these hidden ideas that were shared because it would be the easiest sell to the sheep…and batteries to store that energy! That’s the best our tech can create???!!!! lmfao…rant over.

          Brother, they have destroyed hundreds of millions of lives, minds and acres with their bs high technology at any cost mentality.

          What I am trying to say in a nutshell is that the earth is tired of this crap. She is going to send all of this tech back to the recycle bin until humans learn how to use everything in a simple, productive manner. A friend of mine who recently passed away always said that all you need to survive is food, water, and shelter.

          Three words to live a great life by. Half of Americans can’t even provide this for themselves. Money has to be stolen from folks like you, me and the other commenters here to provide them with the 3 and way more.

          Imagine…The. Earth. Doesn’t. Work. That. Way…and payback is coming.

          In closing, I believe that returning to the basics, real things that come from the earths crust. Returning to the days when everyone tried and was moral will be the only way to move forward.

          Told you I was a caveman.

          • lastmanstanding | February 27, 2014 at 5:15 pm |

            ps…and I love ALL pm’s…if you don’t hold it, you don’t own it…or can’t shoot it.

  2. Hey Steve – thanks as always.

    Spoke w/ a couple different PM / coin shops representing about 15 doors and interesting what they are seeing…

    Continued buying 5:1 ratio over selling. Business remains busy but no shortages or delays in getting whatever they order, including SE’s.

    • Chris,

      Thanks for the insight on the local coin supply and demand outlook. The only way we are going to see shortages again is if we have another Lehman type of event. Right now the Fed & Member Banks have deluded the public into believing EVERYTHING IS FINE.

      Unfortunately… the situation continues to weaken and worsen each and every passing day. I believe the next time we do have the BIG ONE, physical gold and silver will be impossible to acquire.

      There will be no time to make the switch from paper to physical.

      steve

      • Steve – I’m clear on the gold supply / demand picture always with the knowledge there is a large supply that is available @ likely much higher prices. But there is supply.

        I’m less clear on the silver supply / demand picture as this seems more dramatic as there is not the great supply of silver to be loosed on the markets regardless of higher prices. It must come from mining or scrap or ETF’s…fairly inelastic sources.

        • For anyone that thinks there isn’t currently a large supply of silver coming into the market read Ed Steer’s Tues. through Sat. column about the quantity coming into the ETF’s [and to JPM [that falls under the rules of what needs to be reported]. There are days over a million ounces are deposited. This excerpt is from today’s column:

          ” There were deposits in both GLD and SLV yesterday. In GLD an authorized participant added a decent 106,025 troy ounces—and in SLV there were 384,740 troy ounces deposited.

          The U.S. Mint had a sales report on Monday. They sold a chunky 825,500 silver eagles—and that was it.

          There was only a small movement in gold over at the Comex-approved depositories on Friday. They reported receiving 5,144 troy ounces—and that was all. All of it went into Scotia Mocatta’s vault. The link to that activity is here.

          There was a big deposit in silver on Friday as well—and all 1,566,700 troy ounces ended up in Scotia Mocatta’s vault, too. It wouldn’t surprise me in the slightest if this silver wasn’t being brought in to cover their short position in the Comex futures market. As I’ve said on many occasions, it’s my opinion that outside of JPMorgan Chase and two other U.S. bullion banks, Canada’s Bank of Nova Scotia is the only bank that holds a material short position in that metal. The link to that ‘action’ from Friday is here.

        • Chris,

          There is plenty of newly mined/refined silver coming into the market.

          • Yup – as the largest ETF holders of PM’s, GLD has just under 800 tons and SLV has like 10,150 tons…

            my point is there’s something like a 170k tons of gold sitting out there in vaults of CB’s, investors, etc. and annual demand is something like 4500 tons. Supply of mining + scrap is like 3700 tons…the rest has been coming from ETF outflows. Absent ETF outflows w/ continued demand, the supply of 170k tons can be tapped to keep a lid on prices…until it can’t.

            For silver, I’m guessing the dynamics are quite different. There really is little to no supply of CB silver and no longer government stockpiles to be tapped if demand exceeds supply. There is only mining, scrap, ETF flows…and some amount set aside by manufacturers plus investors. Just curious if anybody has a clearer picture of these dynamics?

          • Global inventory of Silver 1 billion oz or less ??? = less than 1 yr supply

            (300,000 tons / 350,000 tons/yr demand)

            (btw – 1950 = 9 billion oz inventory)

            Global inventory of gold of 170k tons = 38yrs supply

            (inventory 170k tons / 4500 tons/yr demand)

  3. Just like a lib to always go to the personal insult/attack. Not a good way to win others over. For such great thinkers you guys always stupe to the lowest form of debate.

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