With the recent update from the U.S. Mint, Silver and Gold Eagle sales surged in August. While Gold Eagle sales continue even higher during August, the real explosion took place in the Silver Eagle figures. After the U.S. Mint adapted its fabrication processes to incorporate protections for employees due to the virus, production and sales of Silver and Gold Eagles took off again in August.
And, when I say that Silver Eagle sales EXPLODED in August, I wasn’t exaggerating. In June, the U.S. Mint sold a bit more than one million Silver Eagles, but this more than quadrupled in August. Total Silver Eagle sales in August were 4,477,000, higher than the total sales from August to December 2019 at 3,591,500.
In just one month, the U.S. Mint sold more Silver Eagles than during the last five months of 2019. That is an impressive figure. We finally see monthly sales figures similar to the monthly sales figures that took place during 2015 when the U.S. Mint sold 47 million Silver Eagles.
Already, Silver Eagle sales for January to September (first ten days) 2020 are higher at 19.1 million versus 14.8 million for full-year 2019.
If Silver Eagle sales continue to be healthy for the rest of the year, and the U.S. Mint can keep up with demand, we could easily see a total of 25-28 million sold for the entire year. Furthermore, it seems as of premiums on Silver Eagles are finally coming down to a more reasonable level for investors. Interestingly, investors are willing to pay these high premiums for Silver Eagles to acquire these U.S. Government official silver coins.
Now, if we look at the Gold Eagle sales for August, there were also quite impressive at 121,000 oz. The U.S. Mint sold 121,000 oz of Gold Eagles in August compared to 152,000 oz for full-year 2019.
Now, if we look at Gold Eagle sales for Jan-Sep 2020 versus full-year 2019, the difference is quite impressive.
So, we can clearly say that Gold Eagle sales in 2020 have exploded compared to last year…. more than quadrupled so far. It will be interesting to see how the demand for both Silver and Gold Eagles continue for the remainder of 2020. If there are more fireworks in the market, Gold Eagle sales quite possibly could reach one million for 2020.
Regardless, even though sales of Silver and Gold Eagles have increased significantly, we are only in the beginning stages of the MASSIVE DEMAND to come in the years ahead.
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Don’t look now…..but here comes SILVER! (Unless China has already got it)
Great article, gives us an idea on demand, but what about supply, and production lead times, isn’t this negatively effecting sales? Or limiting sales potential?
Matt,
The U.S. Mint can produce upwards of 4+ million Silver Eagles per month. If there are no issues with the virus or supply of Silver Blanks from fabricators, the U.S. Mint should be able to produce 3-4 million Silver Eagles per month. Now, it depends upon demand as well. If the market only demands 1 million Silver Eagles per month, then the U.S. Mint will cut back on production.
However, I see even HIGHER DEMAND for Silver Eagles as more Americans WAKE UP to the fact that they are invested in mostly HIGHLY LEVERAGED DEBT BASED ASSETS, that are really LIABILITIES when you think about it.
steve
“However, I see even HIGHER DEMAND for Silver Eagles as more Americans WAKE UP to the fact…”
As I recall [to my knowledge] premiums from the U.S. Mint to the 12 or so authorized dealers has been stable at about $2. Correct me if I’m wrong.
And always ASE’s have cost a little more here in the U.S. than the world’s other recognized mass production bullion coins [Kruggerands, Kangaroos, Brittanias, Philharmonics, and Maples.
Regardless, it’s the premiums the retail customers pay that will affect sales volume. Yes the cult-like following of the ASE means SOME people will buy them at $8+ over spot when one of the other bullion coins is $2.75+ over spot.
But a lot of experienced buyers will NOT pay $5+ more for an .999 ASE over a .9999 Kangaroo or Maple.
My local highly experienced coin dealer currently pays less than $1 more for an ASE over a Maple, and slightly more than a dollar over the other coins I listed.
So as the U.S. Mint ramps up ASE production we shall see what the premiums are compared to other coins…and their sales volume
Yesterday….at a packed LCS and while being, ‘safely distanced’ –standing in the door way waiting, I watched a guy who was at least 10 years older than me talking with and then buying SILVER from one of the attendants. Making my wait a little more pleasant heard him say he’d never been in before, was brand new; He walked out with a hundred 2020 ASE after exchanging $3400 with the coin shop. Felt like I’d just witnessed a noob pass through gestation and come out the birth canal……
I noticed something interesting Steve. ASE sales shoot up but who’s buying ? Good luck finding them in dealers’ stores. If the Mint was shipping so many they’d be easy to buy AND premiums should be dropping faster than they currently. Many large on-line retailers haven’t had them in a while. analysts A couple PM analysts have suggested JP Morgan and other Comex participants have been buying them and melting ASEs into 1,000 good delivery bars as demand for delivery hit record levels.
Lord Kossor,
I gather it depends on the dealers. The leading four dealers that I show in the chart, which aren’t hard to find if you do a little searching, have had decent stocks of 2020 Silver Eagles. While they have been in BACKORDER in the past, most of these dealers do have current stock.
While I realize Ted Butler, Bix Weir, Ed Steer, and etc, continue to claim that JP Morgan has been buying most of the Silver Eagles over the years… that may SELL SUBSCRIPTIONS, but it doesn’t pass the SMELL TEST. I corresponded with James Anderson at SD Bullion a few years back who knows many of the Authorized Purchasers. I asked him this question and he told me what I already knew… if JP Morgan was buying Silver Eagles, the Authorized Dealers would know. They said they heard NOTHING of the sort.
While there have been some hedge funds buying Silver Eagles, no real large entity is buying Silver Eagles.
That is PURE POPPYCOCK being propagated on precious metals investors because these analysts DON’T DO MUCH IN THE WAY OF QUALITY RESEARCH.
As you can see, I don’t hold back on my opinion… LOL.
steve
Steve, you’re the only one I pay for 🙂