SILVER EAGLES vs GOLD EAGLES: Two Charts You Have To See

There are two charts every precious metals investor needs to see.  The U.S. Mint is celebrating its 30 year anniversary producing Gold and Silver Eagles and if we look at the sales data of these two Official precious metal legal tender coins going back to 1986, there are some interesting trends worth looking at.

The U.S. Mint started selling Gold and Silver Eagles in 1986.  The first year the U.S. Mint produced these coins, 1,787,750 oz of Gold Eagles were sold compared to 5,096,000 Silver Eagles… a 3 to 1 ratio.  That was the first and last year, the Silver-Gold Eagle ratio was that low.

Let’s first look at the Gold Eagle sales chart:

US Gold Eagle Sales 1986-2014

I decided to break down the chart into two separate time frames.  We have the total sales from 1986-2007 (before the collapse of the U.S. Investment Banking and Housing Industry), and then after from 2008-2014.  As we can see, total sales from 1986-2007 were 13,997,000 oz of Gold Eagles compared to 6,655,000 oz during the  2008-2014 time period.

If we divide the total of Gold Eagle sales from these two time periods by the number of years, we have the following:

Gold Eagle Annual Sales Average

(1986-2008): 13,997,000 / 22 years = 636,227 oz avg. per year

(2008-2014): 6,655,000/ 7 years = 950,714 oz avg per year

So, after the U.S. economy and financial system teetered on the brink of collapse, the U.S. Mint sold an average of 950,714 oz of Gold Eagles annually compared to the 636.227 oz per year prior to 2008.

Furthermore, the total Gold Eagles sold from 1986 to 2014 was 20,652,000 oz.  This is a great deal of gold investment at a little more than 652 metric tons (mt).  Now, let’s compare the this to the Silver Eagle sales market.

US Silver Eagle Sales 1986-2014

A quick glance at the Silver Eagle chart and we can see a much different picture compared to the historic Gold Eagle chart.  From 1986 to 2007, the U.S. Mint sold 158,262,000 Silver Eagles.  However, from 2008-2014, the sales of Silver Eagles were 54% higher at 244,304,500. 

If we break down the Silver Eagle sales in these two time periods, we have the following:

Silver Eagle Annual Sales Average

(1986-2008): 158,264,000 / 22 years = 7,193,818 avg. per year

(2008-2014): 244,304,500/ 7 years = 34,900,643 avg per year

What a huge difference in sales trends between these two precious metal legal tender coins.  The U.S. Mint sold an average of 34.9 million Silver Eagles from 2008-2014 compared to 7.2 million from 1986-2007. 

Investors purchased nearly 5 times more Silver Eagles a year after the Great U.S. Economic Collapse in 2008, than they did from 1986-2007.  In contrast, the U.S. Mint only sold an average of 50% more Gold Eagles from 2008-2014 compared to the yearly average from 1986-2007.  Basically, Silver Eagles outperformed Gold Eagle sales by 10 to 1 since 2008.

It’s plain to see the difference between these two charts… total Silver Eagle sales were much higher in the last seven years, while the total volume of Gold Eagle sales were greater in the 1986-2007 time period.

In addition, the U.S. Mint sold a staggering 402.5 million Silver Eagles (12,520 mt) from 1986 to 2014 compared to the 20.6 million oz of Gold Eagles (652 mt).  If we assume the following market prices for the total Gold & Silver Eagle sales, this would be the result:

GOLD & SILVER EAGLE Estimated Total Asset Value

Gold Eagles:  20,652,000 X $1,320 = $27.2 Billion

Silver Eagles: 402,568,500 X $20 = $8.0 Billion

Even though investors purchased 20 times more Silver Eagles than Gold Eagles since the U.S. Mint started producing these coins, the total estimated Silver Eagle asset value is $8 billion compared to the $27.2 billion in Gold Eagles.

Also, think about those figures for a minute.  The total U.S. Gold & Silver Eagle Asset Value is approximately $35 billion.  Can you imagine what would happen if just a fraction of the $100 Trillion Global Conventional Assets under management tried to move into this market??

NOTE:  to arrive at the average price per coin value, I took the present market price of gold and silver and then added a premium.

Investors who purchased Gold and Silver Eagles will do wonderfully in the future when the U.S. Dollar finally disintegrates into a typical Banana Republic Fiat Currency.  However, the value of Silver Eagles will out perform Gold Eagles in a big way as the masses try to acquire the more affordable Official Coin.

Lastly, I did receive a reply from APMEX on the issue of Silver Eagle sales since 2011.  As many of you remember, Ted Butler has stated several times that JP Morgan is the big buyer of Silver Eagles since April 2011.  Butler believes JP Morgan purchase half of all the Silver Eagles produced since April 2011.

I have written in response to that providing evidence from some of the Top Online Precious Metal Dealers that their Silver Eagle sales have continued to grow since 2011.  The Chief Operating Officer from APMEX, Kenneth Lewis was kind enough to share some sales info that is not something they typically do.

Unfortunately, I have not yet received permission to reproduce his email, but I can tell you this… Mr Lewis confirms that Gold sales were lower over the past several years, but Silver Eagle sales growth continues to improve paralleling the figures put out by the U.S. Mint.

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18 Comments on "SILVER EAGLES vs GOLD EAGLES: Two Charts You Have To See"

  1. “Can you imagine what would happen if just a fraction of the $100 Trillion Global Conventional Assets under management tried to move into this market??”

    This is why * they * keep a lid on the prices all day long–every day. Because * they * know Americans only like bubbles. That is why gold and silver will unfortunately never really enter a bull market–it will simply be instantaneous overnight revaluation.

    The sheep are a bunch of losers who fail to EVER see the writing on the wall.

  2. A bill introduced in the US house on 1/22/15 is to within 90 days of passage into law change all coins to steel to save money. If that get any traction coins currently in circulation will start to disappear especially nickels and cents as they are the closest to melt value. In addition more people will look at PM’s as a store of value.

  3. Steve,

    When the western masses wake up and begin sucking up anything and everything Ag, how do you see generic private mint rounds and bars being accepted as opposed to US Mint Ag Eagles and Canadian Mint Maple Leafs?

    • When that time comes anything .999 will be in almost as high demand as any government issue coins. An ASE or Maple at $3 over spot versus a generic .999 round one might get on sale at 69 cents over spot, may have about that difference in price at a multiple of the current spot.

      One thing I’ve never seen discussed….when there is a massive silver shortage industry will need it too. What are they more likely to melt, generic or government issue? I’d bet generic. So that would support generic prices. Just checked and I can get ten generics for less that 9 ASE’s or Maples. In the future the main determiner of value may be number of ounces. It is possible buying generics is the best value. One can’t go wrong either way.

      When the public is sucking up everything Ag, 80% junk silver coins will be sucked up, as well any government coins from any country or era with any content of silver.

      • You’ve just defined monetary vs industrial. What makes gives the premium on Au/Ag Eagles their value is the easily recognizable, expensive to replicate, difficult to counterfeit, final form. If you bought silver eagle at $13 plus steep premium yet sld them rapidly with little hassle when spot was $44, then you may determine it was worth it.

        Conversely, if you convert stacks of generic, and your money changer is rapidly converting to melt, the cross check is a quick reliable turnaround.

        Yet again, if you want to use silver to augment trade, then bags of ‘junk’ silver (pre 1964 US silver coin) is the way to go.

        It’s all good. And well matched applications smooth out the investment process while potentially creating arbitrage opportunities.

    • Br,

      Yes. Even though the Official Coins such as Silver Eagles or Maples are more readily known, Silver Rounds will also be in high demand when the FAN hits the CRAP. I would only purchase the more widely known Rounds and from the best sources Online or at local coin shop.

      Normally, whatever Online Dealer you purchase from, will guarantee the quality of the Round.

      steve

  4. with that many silver eagles floating around, if it gets to where people are needing to sell or trade, they may get a good trade or price, but chances are, it will get to the point no one wants them because they are so common. i think the globalist want people to buy gold and silver. that way, when the dollar crashes, gold and silver prices will tumble. the investors will be stuck with metals, while the elite got out before the crash.

    • What is your definition of “got out”, exactly? If you hold real assets like gold and silver you got out in my opinion.

  5. ” i think the globalist want people to buy gold and silver. that way, when the dollar crashes, gold and silver prices will tumble. the investors will be stuck with metals, while the elite got out before the crash.”

    Sorry matey, that statement of yours does not gel with any reality,

    After the silver content/value is established,as far as generics go, the dealers use,I believe, a deduction of around 12% to account for the melt.

    • “After the silver content/value is established,as far as generics go, the dealers use,I believe, a deduction of around 12% to account for the melt.”

      ASE’s usually sell for below spot when you go to sell them too by the way. And .999 generic is not currently melted as it is re-sold to other investors, and won’t be melted until industry can’t get what they need from refiners.

      Sterling silver is melted & refined; not just silver flatware, but [for example] Franklin Mint .925 commemorative rounds too.

      Government minted coins below .999 are not melted very much at this time. They sure were in 1980, and will be again when prices rise significantly.

      • Are you kidding me? If anyone has ASE’s to sell below spot then please give me call. they can be easily flipped at a higer price.

  6. Gene Daniels says:
    February 3, 2015 at 2:46 pm

    Do you have evidence of fake ASE? I have never read about this.

    http://hiddensecretsofmoney.com/toolkit/how-to-avoid-fake-silver

  7. BTW it’s “total sales was…” and “the total volume was…” as there is only one total.

  8. Just heard that Facebook is worth more than the entire gold mining sector on the NYSE.

    Capitalism has degenerated into a complete farce.

    Like all farces, the curtain eventually comes down and the public go home.

  9. silverfreaky | February 5, 2015 at 5:20 am |

    Even 17 Dollar ist to much for this “rare” metal.

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