With the continued disintegration of the economic and financial system in 2021, investment demand for physical precious metals continues to be strong. After the U.S. Mint posted a stunning 2.7 million Silver Eagles sold during the first week in January, they just posted another update, which already blew past last year’s figure by a wide margin.
Remarkably, just the U.S. Mint Silver Eagle sales for the first two weeks in January accounts for 7% of the average monthly global silver mine supply. That’s a lot of silver demand, considering the U.S. Silver Eagle sales are only a small segment of the total global silver market. As I have mentioned in several articles, if we see another record year of physical and ETF silver demand this year like we had last year, the silver price will likely surpass the $35 level.
Now, according to the U.S. Mint’s most recent update, they sold almost 2 million more Silver Eagles this week to the Authorized Dealers. Total Silver Eagle sales as of Jan 12th, are 4,646,000. Already, for the first half of the month, the U.S. Mint sold 800,000 more Silver Eagles than during the entire month last year.
What’s interesting about Silver Eagles, even though the quality of .999 silver is less than its closest competitor, the Canadian Silver Maple coin at .9999 silver, the premium is higher. Silver Eagle premiums can run $1+ more than a Canadian Silver Maple. But, for whatever reason, Americans continue to buy a lot more Silver Eagles than Silver Maples.
With demand for silver investment reaching a record last year, Silver Eagle sales surpassed 30 million in 2020.
If the U.S. government passes the Federal Reserve “Digital Dollar Policy” this year, we could experience serious inflation. The Fed’s Digital Dollar Policy could directly send Americans money into their banking accounts without the need to add debt to the U.S. Government balance sheet. Furthermore, the Fed Digital Dollar Policy would no longer impact interest rates as its current QE policy of buying Treasuries, as a means of liquidity, brings artificial demand, thus lowering interest rates.
The Federal Reserve does not want to force Treasury Rates negative, so getting its Digital Dollar Policy passed by the Congress and Senate will likely be its primary focus. Thus, if the Fed and ECB (European Central Bank) get Digital Currencies, it could be bad news for Bitcoin and Cryptocurrencies.
We put out a new ULTIMATE CRYPTO REPORT on discussing many issues that tend to be overlooked by crypto investors.
My associate, the Tactical Trader, and I agree that Bitcoin will likely continue to experience a lower correction that could wipe out a lot of gains from investors who got in late. With Bitcoin and Ethereum seeing a 24-hour trading action of -20% and -25%, respectively, these will never become alternative currencies. They are way too volatile for wide acceptance as an alternative currency.
Getting back to the precious metals, the U.S. Mint also sold 81,000 oz of Gold Eagles in the first two weeks of the month versus 60,000 oz for the entire month last year.
So far, during the first half of the month, the U.S. Mint has sold 57 times more Silver Eagles than Gold Eagles. Mark my words, Silver Eagle investors are going to be happily rewarded in the future as the value of silver increases more in percentage terms than gold as the world being to head over the ENERGY CLIFF.
Also, if you have not yet seen my IMPORTANT VIDEO UPDATE on JAN 9th, I highly recommend it. If people think Tesla and Bitcoin stocks prices are signifying a NEW HIGH-TECH WORLD, they will be sadly mistaken. Tesla, Bitcoin, and the broader market indexes are all in MAJOR BUBBLES. While bubbles can go on longer, they all POP.
This is why it’s extremely wise to invest in physical precious metals as they will be one of the best stores of value while most assets (STOCKS, BONDS, & REAL ESTATE) decline during the coming Depression that never ends.
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Thank you Steve!
How tight is the overall S/D balance for Silver with this level of monthly sales?
Judging from the massive inventory from online dealers, I’d say they have found places to source the silver from [like the U.K.].
DC: I enjoy your comments, but…
There is absolutely no way to know what secret stocks and hords of silver, gold, money or any other material that any government on Earth has stashed away. Especially one the size of the U.S.
For all we know, they could have half a billion ounces buried at West Point. Maybe a billion ounces off the books out West.
The big question is how much are they going to make available to the peasants.
Stockpiles possible but highly unlikely.
I’ve read interviews with career people from U.S. Mint.
And individuals other than peasants are filling vaults with their personal holdings in the tons.
The secretive stockpiles are a more like an urban legend.
Tom Cloud is highly qualified to supply insider knowledge on this topic.
I’ve talked to him but not like Steve, so perhaps the notion of secretive stockpiles is something he would like to address.
Perhaps not this moment, but after a wholesale supply discussion with Tom.
Thanks, DC, I appreciate your balance and candor. You are probably right. Thanks for your insight.
Looking at it another way, the government probably doesn’t have a stockpile simply because having one would be the wise thing to do! 😀
I agree, and politicians can’t keep their hands off of “surplus” currency [or a metal that can easily be converted to currency]. So for a stockpile to exist it would have to be unreachable by politicians, like the cash or metals under control of The Federal Reserve.
I’ve had a sort of “what if” fantasy for many years. What if the government had bought silver and/or gold with all the Social Security surplus back in the 30s, 40s, 50s and 60s? (And not spent the surplus). We might be sitting pretty right now.
You can still rock in America!
I am not so sure that Canadian Silver Maples are better quality than American Silver Eagles. I bought 50 1oz Canadian Silver Maples back in 2018 and a number of them are milk spotting. Seems to be a common occurrence on Canadian Silver Maples and well known in the precious metals community.
I hope they have diagnosed & fixed that problem by now. A local coin dealer offers less for blemishes and tarnished coins. It is probably .0001 of an inch or .001 mm thick, something like that, but buyers don’t like that so the resale is lower.
Steve, the only people “out of the money” in bitcoin in its entire history, are those who bought between 07-11 January, 2021. Everyone else who EVER purchased bitcoin is in the money. We all knew a correction was coming, and of course buying the new all time highs is much riskier than buying during the 3 year bear market (where the smart money bought).
Bitcoin and Ethereum aren’t “alternative currencies”. You are creating a straw man argument. Bitcoin is becoming the global digital reserve asset that allows people, corporations, hedge funds, institutions, and even governments to hedge against inflation, and it is superior to gold in nearly every monetary feature. Ethereum is not a currency, it is the backbone of the decentralized applications, or the “oil” of the crypto world. You really need to do more research. Ethereum is transitioning to ETH 2.0 to proof of stake, and allows for smart contracts and decentralized finance. This is all early, ground-breaking technology.
“Steve, the only people “out of the money” in bitcoin in its entire history, are those who bought between 07-11 January, 2021”
What about it’s decline after around December 21, 2017? A lot of people had gone in high and lost a lot then.
They are all up about 2x currently… assuming they didn’t buy high and sell low. They only had to wait 3 years to double their money.
How are those silver buyers in 2011 doing nearly TEN years later at that $48 high? Still down a decade later.
Of course a lot of them bought high and sold low…they were ruined financially. Some had borrowed to buy, thinking this was going to secure their future forever.
I saw a YouTube compilation of people meeting that description.
When equities drop a lot many sell to cut their losses too.
A fool and his money are soon parted. Anyone using margin, or taking out debt to buy crypto isn’t doing it right. This could happen with any asset class. Crypto is currently volatile and everyone knows this.
A lot of wiser people who have held onto Bitcoin for three years have now sold. “Crypto is currently volatile and everyone knows this.” Volatility includes to the downside.
Anything yer not holding in yer hand is at risk….dont know why ye bitcoiners havin a hard time getting that through yer head. One superflare from the sun will have ye bitcoiners wonderin how ye is gonna get a hold of yer bits. Guess what … ye wont. No records no email no phones no power. Good luck with that….money out of thin air? … dont think so… ba ha ha ha ha ha
Only a solar flare that takes down the power grid of the ENTIRE Earth would have lasting effects. The way a decentralized network operates is that if you don’t take it all down at once, you can’t kill it. I think it’s hilarious that the best objection no-coiners have is an apocalyptic scenario. That’s how you know bitcoin will be a huge success in this era of non-stop money printing. I’m not sure why you’re the one laughing when it is bitcoiners like me making vast returns. Instead of bragging about it, I try to help educate the PM stackers so you don’t miss the entire boat. It is practically a lost cause for most of you, but some will get it.