Silver Eagle Demand Returns With A Vengeance As Political & Economic Turmoil Increases

U.S. Mint Silver Eagle sales surged in the first half of October due to increased turmoil in the political system and economic markets.  Silver Eagle sales were strong in the first five months of the year, but weakened in the summer due to several factors.

One factor was the fall-off in demand by the Authorized Dealers (wholesalers) who had continued to purchase record Silver Eagles in the first part of 2016, even though retail investor demand had softened..  The other factor was a weakening of investor demand as the contagion from the U.K exit of the European Union subsided in the summer.

Regardless, U.S. Mint Silver Eagle sales came back with a vengeance in the first half of October, reaching 2,925,000 according to their most recent update today (Oct 18th).  If we look at the chart below, we can see how much demand has increased compared the previous three months:

us-silver-eagle-sales-july-oct-est-2016

Silver Eagle sales as of October 18th are 75% higher than total sales for September of 1,675,000.   Furthermore, they have already surpassed June’s sales of 2,837,000.  If Silver Eagle sales continue to remain strong for the remainder of the month, I estimate that at least 4,000,000 will be sold.

In addition, Gold Eagle sales are also much stronger in October.  Even though Gold Eagle sales of 84,000 oz have not yet surpassed the total of 94,000 oz in September, we still have nearly two more weeks remaining in October.

us-mint-gold-eagle-sales-jul-oct18-2016

Also, if Gold Eagle sales remain strong for the next two weeks, they could reach 130,000 for the month.  Not only is this much higher than September’s sales, it would be the highest monthly sales for the year…. even beating January’s record of 124,000 oz.

I believe investors are buying more Gold & Silver Eagles due to the continued disintegration of the financial and economic markets and the “Political Circus” called the U.S. Presidential Race.  There has never been a more bizarre U.S. Presidential Campaign than the one we are witnessing today.

And then we had this headline from Zerohedge today, Saudis, China Dump Treasuries; Foreign Central Banks Liquidate A Record $346 Billion In US Paper.  I imagine this is only the beginning, as the situation in the United States continues to unravel after the election… regardless of who is elected.

Precious metals investors need to understand just how much Silver Eagle demand increased after the collapse of the U.S. Investment Banking and Housing Market in 2008.  As the Fed pumped massive amounts of liquidity via its QE policy (Quantitative Easing = Money Printing) into the U.S. markets, Silver Eagles sales have reached a staggering 325 million since 2008 (2008-2016 ytd):

total-us-gold-silver-eagle-sales-1986-2016ytd

While total cumulative Silver Eagle sales are 483 million oz (Moz) since the U.S. Mint started the program in 1986, investors purchased a stunning 325 Moz since 2008.  Thus, Silver Eagle demand for the past nine years accounts for 67% of total sales since 1986.

Looking at it a different way, investors purchased 325 Moz of Silver Eagles from 2008-2016, versus 158 million oz from 1986-2007.

When the markets finally crack in the future, investors who have purchased physical gold and silver will be holding onto the best quality “Stores of Wealth” providing much better options that those stuck with most Stocks, Bonds and Real Estate.

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23 Comments on "Silver Eagle Demand Returns With A Vengeance As Political & Economic Turmoil Increases"

  1. lol & I have a few more here in October now, too.

    • People should be continuing their stacking campaign. Never before have we seen such a precarious period of time going completely unreported by the MSM. The media is completely and utterly owned by the government now. Protect yourself, the government will be of no help to you.

  2. Just this morning I was saying, “What happened to the articles on Silver Eagle sales?”

    Thanks, Steve!

  3. Bhavesh Modi | October 18, 2016 at 7:37 pm |

    Thanks Steve.

  4. It’s pretty obvious what’s going on around us. Upheaval everywhere regarding real jobs. Industry in this country is all but shot. Buying physical silver and gold are practices that are being recommended even on prime time radio today. A sure sign that the masses are starting to involve themselves with the seeing to it that they hold some amount regarding physical metals.

    • DisappearingCulture | October 19, 2016 at 8:06 am |

      “Buying physical silver and gold are practices that are being recommended even on prime time radio today. A sure sign that the masses are starting to involve themselves…..”

      Probably resonnates with a few %, but many of those are tapped out. Maybe 1-2% of listeners make a purchase as a result of covering the topic or advertisements from overpriced advertisers.

      • “Maybe 1-2% of listeners make a purchase”

        yeah, the market’s pretty thin. 2,925,000 sounds like a lot, until you realize that if they bought 100 each (not uncommon) that means only about 30,000 people purchased anything. realizing that that means, for example, only 3000 californians bought anything, puts it into further perspective.

      • ” Probably resonnates with a few %, but many of those are tapped out. ” If this is the case it won’t be long for the bond market followed by the stock market followed by the real estate bubble to all plummet from their highly artificial towers.

        In one of the precious metals commercials that this reader heard recently , the announcer was recommending even a small amount of physical metal would help. Quite telling.

  5. Thanks for the update Steve. Have you looked at http://didthesystemcollapse.com/
    Back in the spring the SILVER price differential between the London bullion market and the Shanghai exchange was around a 14 cent premium in China with silver in the $16-17 range or 0.8%.
    Then in mid Aug the premium rose to the mid 50 cent range with the silver price @ $19.50 or 2.7%.
    After the recent price smash during the week the Shanghai market was closed, silver dropped back to the $17.50 range, but the Shanghai premium increased dramatically to the 80-87 cent range or @ 4.7%. Gold premiums are very small and haven’t changed much. It seems like Chinese banks could arbitrage this by buying in London and selling in Shanghai. There is definitely something to see here.

  6. Steve.
    I stumbled across an interview you did on some channel called SGReport and the interviewer said he did not think that oil, coal and gas were produced by fossils. I almost fell off the chair. And I am a wondering why you didn’t correct him. Or did you not hear this absurdity?
    Even though I own some precious metals I am more interested in your site because of your work on energy. Where did you find this guy? Kindergarten? Please don’t tell me you agree with him.

    • DisappearingCulture | October 19, 2016 at 8:09 am |

      Well Barry whether fossil source or not doesn’t matter to the EROI topic.

      People believe the earth is flat and only a few thousand years old too.

      • “Do you really believe that petroleum is a fossil fuel?” The man said,”Certainly” and all four of them joined in. Kantrowitz listened quietly and then said, “The deepest fossil ever found has been at about 16,000 feet below sea level; yet we are getting oil from wells drilled to 30,000 and more. How could fossil fuel get down there? If it was once living matter, it had to be on the surface. If it did turn into petroleum, at or near the surface,how could it ever get to such depths? What is heavier Oil or Water?” Water: so it would go down, not oil. Oil would be on top, if it were “organic” and “lighter.” This quote is said to have been made by Prof Arthur kantrowitz. I dont think he was at kindergarden at the time. i would not have thought he believed that the earth is flat either.

        “Oil is neither.”

        • Later in the interview the interviewer started going on about how the “elites” are holding back zero point energy that the aliens gave us.
          And when Steve used the world religion as a metaphor he got all excited because his sentence had the word religion in it.
          My gut feeling was that he didn’t “believe” fossils make oil for theological not scientific reasons. Which is the worst reason to believe anything.

        • “The deepest fossil ever found has been at about 16,000 feet below sea level; yet we are getting oil from wells drilled to 30,000 and more. How could fossil fuel get down there? If it was once living matter, it had to be on the surface. If it did turn into petroleum, at or near the surface,how could it ever get to such depths? What is heavier Oil or Water?” Water: so it would go down, not oil. Oil would be on top, if it were “organic” and “lighter.”

          did anyone answer these observations?

  7. silverfreaky | October 19, 2016 at 7:01 am |

    Saudia Arabica and China is dumbing US-Bonds.The knell is ringing for the US-financial system?
    Lord have mercy with the US-citizencs!

  8. A few may be buying silver Eagles but the premium and lead times haven’t changed. When premiums
    beginning hitting 25% and lead times in the 6 to 8 weeks range, then it’s time to buy more silver. Demand
    must exceed supply or silver goes no where. You preach a currency, oil and economic collapse, but who wants to live in those times? Silver is in for a long, long wait for spot to go over $20.

    • “You preach a currency, oil and economic collapse, but who wants to live in those times?”

      heh. most won’t.

    • Hi Joe, your comment brings me out of the woodwork. Steve’s argument since the beginning has been very simple. It is that debt based money needs to constantly expand or it collapses. Yet the conundrum is that we can’t return to growth or expand the economy without expanding the energy.

      You may very well be right, I certainly never thought we would make it this far. We may be a long way off, but it could be tomorrow or next month. Nobody knows the day or the hour. That is why PM’s are considered disaster insurance by many of us stackers.

      Honestly, I don’t want to live in those times. I pray to the universe that I can leave my children one hell of a coin collection. But I also know that a collapse is a mathematical certainty.

      Steve, I don’t stop by here enough to thank you for your work. Be Well! TH

    • Yeah a wait of a few weeks

  9. Thanks for your efforts Steve.

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