Silver Eagle Sales Steal The Show While Top Silver Miners Lose Money

In an interesting irony, investors are purchasing record amounts Silver Eagles while the top primary silver miners continue to lose money.  Not only did investors purchase the most Silver Eagles in the month of February compared to previous years, the silver/gold ratio is off the charts.

In February, 2013, investors purchased 3,368,500 Silver Eagles and 80,500 oz of Gold Eagles.  Thus, we had a Silver/Gold Eagle ratio of 42 to 1.  This year, investors purchased 3,750,000 Silver Eagles compared to 31,000 oz of Gold Eagles.  This is a staggering 121 to 1 ratio, shown in the chart below:

U.S. Mint Silver  Gold Eagle Ratio update

The chart shows that Silver/Gold Eagle ratio for the past four years including the 70 to 1 ratio for the beginning of 2014, calculated a few weeks ago.  If we update the total sales for 2014 presently, we have the following:

2014 Silver Eagles = 9,428,500

2014 Gold Eagles = 123,000 oz

Silver/Gold Eagle Ratio = 77/1

As I mentioned in my last Silver Eagle article, Public Affairs person, Michael White stated in an email that the total allocation for the last week of February was 1,250,000.  Last Friday, the U.S. Mint updated their figures showing at total of 3,750,000 for February and another complete sell-out of their weekly allocated amount.

March 4th Silver Eagle Update

Furthermore, the U.S. Mint sold 903,500 Silver Eagles as of Tuesday, March 4th.  The total allocated Silver Eagle amount for this week is 1,100,000.  Which means 82% of the total Silver Eagles allocated to the authorized dealers have already been purchased in the first two days of this week.

I would imagine the total allotment of 1.1 million Silver Eagles will be sold by the end of the week.

Top Primary Silver Miners Continue To Lose Money

The fourth quarter results are out from most of the primary silver miners and again… we see continued losses.  Pan American Silver, Coeur and Hecla all lost fiat currency in Q4 2013:

Q4 2013 Pan American Silver

Silver Produced = 6.8 million oz

Cash Cost oz = $10.81

Adjusted Loss = $84.3 million

Q4 2013 Coeur Mining

Silver Produced = 4.3 million oz

Cash Cost oz = $9.84

Adjusted Loss = $25.1 million

Q4 2013 Hecla Mining

Silver Produced = 2.5 million oz

Cash Cost oz = $7.33

Net Income Loss = $3.0 million

These top three primary silver miners basically gave away 13.6 million oz of silver for free (actually less than free as they lost money).  If we make a simple calculation, the average loss for this group was $8.26 an ounce:

$112.4 million losses / 13.6 million oz  = -$8.26 oz

We see the top primary silver miners are still losing money at an average realized price of silver in Q4 at $20.32 an ounce.

I find it quite ironic that the large Banks in the U.S. continue to show nice profits by creating money out of thin air and making revenue on selling paper garbage derivatives while the top primary miners (who produce a metal that has been money for thousands of years), are in the RED.

For those investors who look at industry cash costs as a guideline, you will notice that all of top three primary silver miners stated cash costs at $10 or below while RECORDING LOSSES for the period.

So, I would like to remind investors once more… CASH COSTS are not indicative of the profitability of the company.

When all the primary silver miners release their results, I will publish an article on the latest Break-Even cost for the group.

There is a lot more I can write about, but I have plenty other coals in the fire currently.  Please check back for updates and the new upcoming REPORTS PAGE that will include free & paid reports on information not provided in the public area.

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39 Comments on "Silver Eagle Sales Steal The Show While Top Silver Miners Lose Money"

  1. OutLookingIn | March 5, 2014 at 1:52 pm |

    Steve, an artical just put up by “belangp” on youtube that covers oil capex of all majors, versus production and current retail pricing, has some charts and surprising result analysis, that would most likely very much interest you.

    Little wonder that miners rising production costs have eaten into their bottom line, when the cost of energy assaults them from every quarter.

    The dollar ‘valuation’ of an ounce of silver bullion as per the G/S ratio, says its VERY cheap to purchase right now. Won’t stay that way for very much longer. Just way too many dark shadows of swans circling.

  2. Silver Curious | March 5, 2014 at 1:56 pm |

    Great article… good info.

  3. I *can’t* wait for your paid reports Steve!!

  4. Why since ’08 have “foreigners” been so keen to buy incredible quantities of US Treasury public debt ($4 T increase in notes/bonds..a 350% increase) while US domestic sources have decreased their holdings due to relatively unattractive yields? How did these countries function w/out massive holdings of US Treasury debt before ’08???

    Why now with the Fed tapering their QE would “foreigners” continue to hold their record positions and continue adding to them? Absent rising interest rates and/or QE, the only buyer available is “foreigners”…and luckily they don’t seemed concerned w/ a profit motive. The Fed/”foreigner” combo own 80% of all public outstanding note/bond debt. Simply another $2 T and the worlds largest, deepest, most liquid debt market will be entirely un-owned by America???

    What do we attribute the deviation of “foreigners” viewing Treasury’s as an attractive asset vs. domestic sources who view them contrarily? Why are “foreigners” not worried by the relatively poor yields as US states and institutions are?

    Is there any reason this situation isn’t stable or sustainable?

    Is the transfer of such a large % of this mid / long term debt to “foreign” holders (55% and growing) in America’s interest? If not, in who’s interest? Qui bono???

    This situation of murky ownership of bad assets is not just in America, it seems repeated in Japan, Spain, Italy, France, etc. etc.

    BIG QUESTION – IF “THEY” ARE ABLE TO CONTROL THE LARGEST OF THE LARGE DEBT MARKETS OF THE WORLD – WHY DO WE ANTICIPATE THEY WILL LOSE CONTROL OF THE SMALLEST MARKET…THAT OF THE PM’S???

    Increases in US Treasury debt “foreigners” have amassed (breakdown below)

    Jan ’00 – ’07 – Dec ’13

    $1 T —> $1.6 T —> $5.6 T (cumulative “foreign” held US Treasury debt)

    25% —> 40% —> 55% (% of notes / bonds held by “foreigners”)

    1% —> 1% —> 25% (% Fed held notes / bonds…Fed primarily held Bills until ’08)

    74% —> 59% —> 20% (% domestically held notes / bonds)

    180% —> 130% —> 247% (% public vs. intra-gov debt)

    350% increase (public outstanding debt, $3.5 T to $12.4 T)

    250% increase (intra-gov debt, $2 T to $5 T)

    6.6% —> 5% —> 2.4% (net interest rate on debt)

    $300B -> $270B —> $223B (net interest paid on national debt)

    $9.2 T –> $13.7 T –> $16.1 T (GDP = 75% increase);

    $5.7 T –> $9 T –> $17.4 T (National debt = 305% increase )

    • Silver eagle sales are being discussed here. Why on earth have you posted this comment about US debt?

      Th last time I looked, the Federal Reserve was buying most of the newly issued US Government debt. The Fed purchased $552 billion of US Government debt in 2013 while foreigners only purchased $221 billion. Of that US debt purchased by foreigners, over half or $118 billion was in fact purchased by Belgium or in other words purchased by the ECB. So we have the US FEd and ECB monetising the vast majority of US Government debt.

      http://www.zerohedge.com/news/2014-02-19/2013-fed-bought-150-more-treasurys-all-foreigners-combined

      So much for massive foreign demand for US Government debt.

      • Gold and silver’s dollar value is gleaned against the outstanding dollar debt – if the US Fed is running a shadow QE to purchase trillions in treasury debt (which looks pretty likely…I guess you missed the point of my post, that the Fed is running a parlor game through the “foreign” category of Treasury holdings) alongside their acknowledged $4 T in QE…it certainly bodes both well and ill for precious metals.

        Negatively, it means the Fed or ESF or agents for it have nearly unlimited funds to push and pull the market, as desired.

        On the positive, it means PM’s are far more undervalued against far more dollar debt than stated.

        Seems important to understand the basis of the currency in which the metals are based as a pretty fundamental building block to properly value them in that currency.

        • China via the SGE has gone from about 10 tons a week in ’09 delivery to just under 50 tons a week now…a 500% increase. Perhaps China has gone from 1000k tons to 5000k or 8000k tons…again a 500% to 800% increase. But admit nothing.

          Chinese openly admits to increasing their Treasury holdings from $60 B in ’00 to $400 B in ’08 to $1.27 T to now…a 300% increase since ’08 and 2000% increase from ’00. Massive Chinese increases would make sense if on the flip side they (and not India) were allowed to drain the gold reserves at a bargain to befit their world power status in return

          Gold ETF’s shed about 900 tons last year or about 40% of their holdings…most likely almost all moving to China.

          In sum, China’s purchasing and holding of Treasury’s coupled w/ likely Fed/Fed agents/swaps/etc buying has maintained a bid / low yields and China was paid in gold to do this beyond what otherwise would have been their natural endpoint…but the attack on the ETF’s last year signals the demand is beyond what mining / scrap can supply…absent the quid pro quo of gold for treasury’s…the Chinese may be at the end of the game…leaving only the Fed to buy all treasury’s via the “foreign” TIC category and/or more QE.

          I can’t see gold or silver or SE’s in isolation but have to see them in their bigger context…sorry if my trying to put together disparate info seems a bit all over the map…it’s just as Steve notes it’s only through understanding ever more marginal energy and ever less exportable energy, ever greater debt coupled w/ ever higher leverage, and metals inter-relation one can attempt to understand the value and worth of these things.

  5. GermanReader | March 5, 2014 at 4:06 pm |

    Thank you Steve for this great information, very convincing numbers.

  6. Silver Curious | March 5, 2014 at 4:59 pm |

    Big Silver numbers coming out of India (6,125 tons) … 2013 Indian Silver imports increase by 189% over 2012 stats…

    http://www.ingoldwetrust.ch/india-imported-6125-tonnes-of-silver-in-2013

    BTW – 6,125 tons x 2,200 lbs x 16 OZ = 216.6 million ounces

    • based on #’s from World Silver Supply 2013 (whatever those are worth..still gotta have some kind of baseline to work from)

      ’13 Silver global supply = 1,050,000,000 oz or 32,812 tons/yr (mining / scrap)

      Total global inventory of silver is less than 1 B oz (below 32,000 tons)…down from 9 billion in 1950.

      end users in ’13:

      50% = industrial users (16,400 tons)
      25% = jewelry / silverware (8,200 tons)
      25% = investment demand (8,200 tons)

      India in ’13 increased from 2100 tons to 6100 tons = a 4,000 ton increase and bought 75% of all silver available for investment?

      While mint sales worldwide were at record pace while industrial / jewelry maintained their usage.

      And price collapsed although the silver ETF’s did not off-load to meet the demand as their cousins did in the gold market (silver ETF’s supposedly have 700 million oz or just under 22k tons)

      Either somebody has far more or far less supply than they are admitting to have met the ’13 demand coupled w/ a crash in price? Either this is the greatest mismatch of supply / demand and the greatest mis-pricing of an asset in history or stackers (myself included) are victims of some strange hoax? When I try to explain to people this situation, they simply can’t believe such an extreme mismatch is possible…that relatively so little money could buy up and corner all available silver at the margins…which makes me wonder if I’ve got it all wrong?

      And yet I don’t hear a peep from industrial users or mints or bullion dealers that they cannot source silver (blanks maybe but supposedly not silver) or are seeing any tightness causing a bidding war. Somewhere, somehow, someone is all wrong???

  7. So, to repeat my question in an earlier thread, why then is Silver not following Gold higher? Does this suggest that, having run out of physical Gold, the Cartel has now shifted its attention to Silver?

  8. Adolf Hitler | March 5, 2014 at 7:26 pm |

    But the problem is that items depreciation and amortisation don’t impact the cash flow. Yes, silver miners can suffer heavy losses. However, unless the silver crashes to, say, $12, which is around their total cash cost, silver miners probably will still keep producing silver even at a loss.

    • Adolf,

      I am quite glad you brought up this subject. However, you couldn’t be more wrong.

      Alexco Resources which is one of the highest grade silver mines in the world, and is the HIGHEST GRADE silver mine in Canada, shut down operations in Q4 because they were losing their shirts. Here is Alexco resources Q3 2013 cash cost.

      Alexco Q3 2013 Cash Cost = $12.93

      Why did Alexco shut down production if they still had $7-8 more dollars positive of their cash cost? Because CASH COSTS are BOGUS and not a good determination of profitability. And yes Adolf, that $12.93 cash cost an ounce includes a deduction of their silver stream agreement with Silver Wheaton. So, it could be a few dollars higher.

      Adolf, your suggestion that amortization and depreciation do not impact cash flow may be true, but CAPEX does. I would kindly like to remind you that AMORTIZATION & DEPRECIATION are real costs shown through by quarterly CAPEX spending.

      You see, in the real world, mines have to continue to replace equipment and sustain their mining operations. This costs an arm and leg. Even though they may deduct Amort. & Depreciation from cash flow on the top from operating cash flow, CAPEX comes out in the bottom part of the equation.

      And…. in the majority of cases, CAPEX is greater than Amortization and Depreciation. So, using that as a factor becomes a RED HERRING dear sir.

      The silly notion that mining companies can DEDUCT their by-product credits (revenue) to lower their cash cost, does not mean the miners can produce silver at that lower amount. All it means is that they have a low cash cost.

      Furthermore, CASH FLOW is not as important as FREE CASH FLOW..

      Free Cash Flow is subtracting Capex & Dividends from Net Operating Cash Flow.

      For example… if we look at Pan American’s Q4 2013 Cash Flow statement:

      Net Operating Cash Flow = $46.1 million

      CAPEX spending = $33.7 million

      Dividends = $18.9 million

      FREE CASH FLOW = $46.1 – ($33.7 + $18.9) = -$5.6 million

      So… there you go ADOLF, Pan American lost $5.6 in Free Cash flow even though they recorded a $10.81 cash cost. Basically, Pan American had to dip into cash to pay for dividends.

      Anyone who goes by CASH COSTS has been misled by the industry. The by-product credits should be renamed to be called BY-PRODUCT REVENUE. These primary silver miners need all the by-product revenue they can get because it helps their bottom line.

      steve

      • Adolf Hitler | March 5, 2014 at 9:57 pm |

        I know that in the long run you are correct. However, in the short run, anything can happen. Back in 2012, when natural gas crashed below 2 which was well below the cost of production, did all the natural gas producers close down? I’m afraid not. You can’t produce at a loss forever but you can still manage to do that for some time, especially for some financially stronger miners.

        • Adolf,

          You are debating APPLES & ORANGES here. For one thing, the only reason why the U.S. SHALE GAS INDUSTRY is still alive and kicking today has to do with WALL STREET.

          1) Shale gas companies such as the BLACK SHEEP of the bunch, Chesapeake…. two-thirds of its cash flow came from asset sales in 2012 and still had a $billion loss of net income.

          2) Shale Gas companies used Wall Street to broker deals by proving up FICTITIOUS RESERVES and pawned them off to companies throughout the world.

          3) Then came the HUGE IMPAIRMENT WRITE DOWNS. Now, the Chinese are no longer buying SHALE ASSETS because they realize they are complete GARBAGE.

          4) Not only are the Chinese staying away from the SHALE ENERGY TURDS, so are the Majors. Exxon and Shell are getting out of their Shale assets…. actually should be stated as “Liabilities.”

          5) Banks are lending to Shale Energy Companies because they are part of the SCAM. They would not do the same if Silver Miners were hemorrhaging. Did any bank come in and assist Alexco Resources???

          Lastly… I am completely surprised by the lack of INTELLIGENCE in the market when it comes to these matters.

          steve

      • roguefaction | March 5, 2014 at 11:35 pm |

        Steve,

        Forgive me if I’ve overlooked your mentioning this as being factored into your analysis, but since “primary” silver miners currently account for roughly only 25% of total silver production, it would seem important to define the term ‘silver miners’ before you and ‘der Fuhrer’ can come to grips with the issue.

        Notice that he is using the term ‘silver miners’ and you are talking about ‘primary’ silver miners. Apples and Oranges. Those who mine silver as a byproduct of their zinc\lead or nickel operations will indeed ‘continue to mine silver’ as he says, no matter the negative returns.

        If negative market conditions continue to place pressure on the primary operators, then all of them could conceivably shut down, yet 75% of global silver production would continue to come on stream. Bearing in mind the overhang of some 178 m oz that you mentioned in the previous piece(and ignoring for this purpose whether or not that represents a paltry sum in fiat terms), the demand\supply dynamics that the hardcore silverbugs speculate will lead to an imminent explosive rise in price seem a little shaky a hook to hang one’s hopes upon.

        It’s not been entirely clear to me in your previous posts to what degree you subscribe to this supposed demand\supply factor driving silver upwards, as you have alternately advised throwing conventional supply\demand analysis out the window and seemingly embraced using it at the same time.

        Indeed, your proposition that “Silver Will Be The King Precious Metal Performer” intriguing though it was, failed to get fleshed out sufficiently in that piece to make it clear why that eventuality can be expected.

        “Precious metal investor need to stop paying attention to these orthodox silver supply and demand forecasts as they will become increasingly meaningless in the future as global peak oil production destroys the biggest Fiat Monetary Ponzi Scheme in history.”…”technical analysis will become increasing worthless in a peak energy environment.” All good stuff, but the only direct reference as to silver’s rise in that piece turned out to be sort of lame IMHO…that it’s less expensive than gold for the punters to play with!

        I tend to see mint production of silver coinage as kind of a sideshow to the main event in silver’s global usage. It would be helpful if you could demonstrate that this is not the case.

        Anyways…

        Mothballing silver mines is a very costly procedure in itself, and this would even further degrade the industry in the minds of investors. However, I have in mind a party that could greatly benefit from such a scenario, and could conceivably be driving market conditions in that direction even as we speak*

        … but I’ll wait for your response to this question before continuing with that theme.

        *no “Pilgrims” employed in building said experimental model!

        • Rogue,

          I believe Adolf was referring to “primary silver miners” even though he may have just used the words “silver miners.” Base metal miners don’t go by $12 cash cost silver…. only primary silver miners. That is what Adolf stated in his first comment.

          As for the subject of Silver Eagle sales… its two-fold.

          1) investors like to know what’s going on in the silver retail market and Silver Eagles are the number one in official coin sales. By writing these articles on Silver Eagle demand, I attract more readers. More readers will then read my energy analysis that I now include in my precious metal articles.

          2) Investment Demand is the Key Factor that pushes the price of silver to new highs, not industrial demand. While I have stated that in the end, the typical supply and demand forces will become meaningless… in the meanwhile price and investment demand go hand in hand.

          I will also continue this… later. Goodnite.

          steve

          • “2) Investment Demand is the Key Factor that pushes the price of silver to new highs, not industrial demand. While I have stated that in the end, the typical supply and demand forces will become meaningless… in the meanwhile price and investment demand go hand in hand”.

            Steve,

            I think from all I have read your first statement is correct. Industrial demand is relatively steady. And the big industrial users have their supply source[s] well established. If however investor demand went into a relative frenzy there could be industrial user shortages. Imagine if Apple didn’t get an order on time…then it happened again, delaying production. They have huge cash/liquid reserves. If they whip out their “checkbook” and put in a huge order to meet foreseeable future needs, and to get silver at a current price point, that would put fuel on the fire. So steady industrial demand won’t drive price up, but big orders could.

        • Adolf Hitler | March 6, 2014 at 6:18 am |

          I was talking about primary silver miners. However, some of byproduct silver comes from gold production. Silver always moves in tandem with gold. If primary silver miners are bleeding, gold miners won’t be faring well. Primary silver and silver from gold production account for about more than 40% of the mine supply. That’s a lot of silver.
          Steve believes that it’s the investment demand that drives the silver price. I agree because silver is a monetary metal. Since Asia is vacuuming gold from the western world at the moment, there probably won’t be enough gold left when westerners need gold. Ergo, they will probably buy silver.
          Steve believes that the energy price will drive up gold and silver prices because mining gold and silver needs energy. However, the same logic can be applied to base metals but Steve thinks that when people faces peak energy, they won’t need base metal so base metals prices will crash. I think this is a bit self-contradictory.
          Besides that, I think there is too much wishful thinking in the gold/silver community, for example, “The cost to produce gold/silver is XXX. The Fed won’t let pm prices drop below that level to close down miners. The Fed needs the gold/silver.”
          In the long run, yes, miners must at least break even to produce precious metals. But in the short run, anything can happen.

          • I don’t think Steve believes that the price of energy will drive up gold and silver – the price of oil will probably not increase all that much because of the negative feedback that the higher price will have on the economy.

            The problem is the enormous amount of paper “wealth” – paper wealth is a claim on future prosperity and needs a growing economy and if we really are at peak cheap oil then the future is probable going to be shrinking and many promises will be broken (= paper wealth evaporating).

            People will increasingly seek safety in tangible assets including silver in the future

          • Adolf,

            I see we agree on Silver Investment Demand being the key factor in driving price. I also agree that when gold becomes in short supply… the focus will turn to silver.

            Now, as for the subject of energy and the metals… I need to clarify my position because I tend to forget people cannot read minds. They can only understand my position by what I write down. I have not made myself clear.

            ENERGY & THE METALS:

            CLARIFICATION… it is not the price of energy that will determine the future value of gold and silver, it is the SHORTAGE OF IT.

            There have been some excellent presentations by energy analysts on the subject of energy supply side fundamentals. Steve Koptis is one of these analysts who has proven that the market cannot AFFORD HIGH energy prices.

            Once the price of energy gets to a certain level, the public cuts back on consumption. So, this totally destroys the fundamental economic principle that a HIGHER PRICE will “ALWAYS” bring on more supply.

            The big oil companies finally realize this…. they have started to cut back on projects, exploration and are now selling lower quality assets (such as the shale energy turds). Their clients are not the PUBLIC, but rather their SHAREHOLDERS.

            The public has this misconception that the Oil Majors are in the business to produce oil. They are not. They are in the business to make profits…. oil is just the vehicle to get the profits.

            Shareholders do not want their oil companies to continue growing production (or just keeping it from falling) by spending a lot of CAPEX with nothing to show for it.

            So… the OIL MAJORS are now looking to cut back production and make profits for their shareholders. Which means… we hit GLOBAL PEAK OIL real fricken soon.

            The present MONETARY SYSTEM based on compound interest, fractional reserve and fiat money can only survive if the global energy supply continues to grow. Once we hit Peak Oil Production and decline, the fuel that allows the Fiat Monetary System to continue… peters out.

            We must remember, Bernie Madoff’s Ponzi scheme ended in 2008 during the collapse of the broader markets. No one wanted to invest in anything in the markets at this time.. so BERNIE ran out of fuel (new investors) to keep his Ponzi Scheme alive.

            The PUBLIC & WORLD do not see it yet… but they will.

            Lastly, the reason why Gold & Silver will be the better STORE OF VALUE & INVESTMENTS compared to say copper, lead, zinc and etc, is due to the fact that they are much more rare and still are known as monetary metals.

            The value of copper may increase, but it still comes down to the store of ECONOMIC ENERGY. Gold stores a great deal more economic energy than silver… and silver stores a great deal more economic energy than copper.

            There is an old saying… DON’T FIX SOMETHING THAT AIN’T BROKE. That is why I believe Gold & Silver will be the best stores of value and investments in the future.

            …. because they have proven themselves over and over again for thousands of years.

            steve

    • So if you have to buy new tires and lube your excavator, how does that not affect cash flow?

      • It does, but it only impacts the PNL and cash when the replacement expense is actually incurred.

        • Have you ever run heavy equipment. When exactly does something NOT need attention. Over the course of a year, lots of stuff actually incurs.

  9. Good Cheer | March 6, 2014 at 3:37 am |

    Steve, Maybe a bit off topic, but my question is why we don’t see the monthy US silver bullion sales number drop when the Maple’s are priced so much more lower as a over spot price. Is there a site where we can track the Canadian mint number’s as well. Back to the question: what might be some of the reasons people continue to buy the Siver Eagles at record numbers when the Maples are offered at a lower over spot price with the same advantages and rewards.

    • Good Cheer,

      The Royal Canadian Mint only provides updates on its Maple Leaf Sales every quarter. Furthermore, they won’t have total 2013 figures until their Annual Report comes out in April… about the same time they release their Q1 2014 sales.

      steve

  10. Actually the sale of silver eagles have dropped off from last year. What’s dropped even more are gold eagle sales which is why the ratio is 120/1. You compare the numbers from February of each year and note the increase in demand but you forgot to mention that January sales compared to last year have dropped by 2.7 million ounces! Through February total silver eagles sales have dropped 2.34 million ounces compared to last year.

    • Greg,

      Yes, it is true that Silver Eagle sales are down compared to last year. However, a good percentage of the decline was due to the U.S. Mint and not demand. The U.S. Mint could not get the first 2014 Silver Eagles out until nearly the beginning of the third week of January.

      Furthermore, they limited the number of Silver Eagles that week to only 3.5 million. The authorized dealers have purchased ALL of each weekly allocated amount.

      And.. they continue to do so. The Authorized dealers purchased every allotted Silver Eagle in Jan and Feb. We will see if they purchase all in the month of March.

      As I mentioned in the article, the weekly allocation is 1.1 million. So far, the U.S. Mint has sold 959,500 as of today. There are still 140,400 left in the allocation until tomorrow.

      So… even though Silver Eagle sales are down compared to last year, we are still seeing record buying by the Authorized Dealers. This is not the same with Gold. The public in the west will only start buying the Gold Eagles when they see another huge BANKING or FINANCIAL THREAT.

      steve

  11. Steve, been following your stuff for a while now, just want to say Thanks.

    • rip,

      Thanks for the Kudos and I am glad you stopped by the site. I plan on rolling out some interesting and eye-opening material in the weeks and months ahead.

      steve

  12. Steve or somebody,

    do we have information on what percentage of those purchases from the mint are domestic versus foreign? Are there any rules on that? Is this just foreigners buying up all of the mint?

    • Rojelio,

      Thomson Reuters GFMS tries to do a forecast of the amount, but it is quite difficult to know what is purchased where. I would imagine the larger percentage of Eagles & Maples are purchased in North America.

      steve

  13. Good Cheer | March 6, 2014 at 6:50 pm |

    What about my question about your thoughts on silver Maples being a better value over Eagles due to the lower premiums?
    Wouldn’t you think more people would flock to the Maples?
    Lastly, do you any advantage buying Eagles over the Maples?
    Thx for the great work,

    • Good Cheer,

      It really is a preference. However, in the end… it really won’t matter as silver is silver. If the idea is to get the cheapest cost, then Maples do have a smaller premium and they are FOUR NINES pure = .9999, whereas Eagles are THREE NINES pure = .999.

      Again, when the Fiat Monetary System collapses, these little tiny differences won’t matter… what will though, is HOW MANY OUNCES YOU HAVE.

      steve

      • roguefaction | March 6, 2014 at 11:47 pm |

        Steve, your clarification – “it is not the price of energy that will determine the future value of gold and silver, it is the SHORTAGE OF IT” does indeed go a long way towards clarifying the terms of the debate here. Thank you for that.

        If we can agree that “currency” – of whatever type…fiat, metals, shells, or beads – is a measurement of energy in essence, then it’s easy to recognize that the American economy has been running on fumes for some time. Various stratagems have been used to hide this fact, and using a notional, debt-based currency like paper has been the key element to all of them. You can literally pay for something with nothing[of intrinsic value that is!]

        While it’s true that ‘hard money’ like the monetary metals allow for a more transparent view of what energy is being traded in any economic exchange, it may be a grave error to extend from that fact the premise that use of any gold/silver based system will automatically defend a society and/or it’s individual members from fraudulent actions on the part of state or private operators. He who holds the gold, as was famously said, set the rules.

        Because Americans, somewhat by choice, somewhat by the dictate of their corporate media and financial overlords, live in a bubble frighteningly oblivious to the wider world, they are unable to understand that they are living in a rogue state, controlled by criminal elements…

        whose predatory appetites for ENERGY belonging to others has caused them to destroy most domestic sources of wealth and savings as well as terrorize a large swath of the rest of the globe with phony wars designed to defraud whole countries of their wealth… and that these criminal elements have no attachment or loyalty to any state or nationality, nor loyalty to any cause other than their own empowerment at the expense of others.

        The Kenyan and his cronies have now raided the cookie jar completely. There’s nothing left to steal except the crumbs still left in the pockets of a huddling population of Camp Fema pre-registrants.

        Seen from outside the bubble, the fact that America has abandoned, post MFG, all rule of law for a state of crony corporatist neo-fuedal rule by force means clearly that ANY individuals’ financial strategy that is hinged upon a now outdated respect for property rights or judicial process is not just UNSOUND… but also INSANE….unless you are one of the 1%, with the means to employ a private army on your private fiefdom. Because of the facade of phony value attached to the fiat dollar, Americans are going to experience first hand Hemingways’ famous description of bankruptcy…. first gradual, then sudden. There’s simply not enough of value left to pay for the energy-exorbitant lifestyle everyone takes as their due. It will crash and burn overnight in an orgy of DHS driven hollow-point terror.

        This requires a modification of your partially correct dictum… that what will matter in the future will be…HOW MANY OUNCES YOU HAVE.

        Steve, what will matter in the future will be not just HOW MANY OUNCES YOU HAVE, but where you have them. Jim Willie’s latest, out today, reinforces this point quite bluntly …” gold & silver coins & bars, stored in a secure place outside the United States, outside England, outside Switzerland, even outside Canada.” I would include Europe in that list myself, but maybe he knows something I don’t about that.

        As Jim sees it, the Ukraine is where the West runs outta runway for it’s serial energy highwayman heists… I believe that he is correct, and that more than anything else, Americans interested in a future will some kind of freedom need tear off the blinkers and take a crash course in geo-politics NOW. Some of your readers are savvy enough to have already done so… the rest should be encouraged to do so at speed.

        Because what’s coming quickly will make discussion of investment demand for metals obsolete. The next step beyond rogue state is pariah state. And that ain’t a nice neighborhood.

      • “Again, when the Fiat Monetary System collapses, these little tiny differences won’t matter… what will though, is HOW MANY OUNCES YOU HAVE”.

        At that time I suspect generic will be worth the same as an ASE. Before that time there is a premium and preference for government issued [ironic as governments have caused the problems that will lead to a currency crisis].

        With ASE’s about 10% more expensive than generic [today], I’ll go generic.

  14. “For those investors who look at industry cash costs as a guideline, you will notice that all of top three primary silver miners stated cash costs at $10 or below while RECORDING LOSSES for the period.”

    That’s because they are asshole frauds whose only real talent is to rip off small investors, while they let themselves be ripped off by the bullion banks, and tax crazy governments. Mining executives should be jailed for what they are doing.

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