American Silver Eagle Sales Record Kicks Off 2013

  • Posted January 10, 2013

It was only several weeks ago that the U.S. Mint announced they were suspending sales of the American Silver Eagles. The reason WASN’T because there was a lack of demand. Instead, the U.S. Mint had NO American Silver Eagles left to sell! In what is still arguably the biggest monetary story in human history, that being the decades (or centuries) long suppression of silver, those paying attention weren’t surprised at the following news. When American Silver Eagles were once again made available to the public on January 7th, the result would be shattered sales records.

American Silver Eagles SoarAmerican silver eagles | American Silver Eagle Sales Record Kicks Off 2013

On January 7th, the U.S. Mint reportedly sold 3,937,000 American Silver Eagle coins. SilverDoctors reports that 6,107,000 American Silver Eagles were sold in ALL of January 2012. So 2/3 worth of last years January sales was accomplished in one day!

American Silver Eagles’ Opening Day 2013 has set the single day record for sales. This years opening day sales were about 23% more than 2012, and 89% more than 2011. Considering the all time monthly sales record was set in January 2011, this presents the very real possibility that January 2013 will be the new record holder. Demand which we have never seen before.

12 year american silver eagles sales chart | American Silver Eagle Sales Record Kicks Off 2013

As was written before, the Silver Institute alleges that demand has equaled supply over the last 10 years. If that is indeed the case, will more and more demand put us in a silver default?

Global Supply

2.6 ounces of silver | American Silver Eagles ret record to kick off 2013

2.6 ounces of silver

When something’s price is capped well below it’s natural market worth, the risk of shortages will result. This isn’t some conspiratorial theory, but basic economics. Allegedly, there is still a glut of global silver reserves, liberally estimated to be around 18 billion ounces. But global population growth is still outpacing new production. Put this way, over the last several centuries, and up until recent decades, there has been about 7-10 ounces of silver per person. That is now down to about 2.6 ounces per person. Future cell phones, computers, electronics, eating utensils, jewelry, solar panels, and yes, investment demand, will add stress on the supply. So while this author can’t speak for everybody, I can guarantee that my 2.6 ounce quota will be filled in short order.

Were not going to get into the fool’s game of calling Peak Silver, or start calling price action. The market is still rigged and will continue to be rigged until it CAN NOT be rigged any longer. The U.S. Mint not having silver on hand to meet demand is just a harbinger of things to come. It’s just the tug of war of the real physical supply versus the speculative paper market. Seeing the United States Mint have no silver on hand while silver’s ‘price’ was simultaneously being taken lower has become the new normal.

Back to the Future

In the future, when a computer manufacturer gets the slightest hint of a three week delayed silver shipment, what do you think their action will be? Will they say ‘Oh well, go home employees, we are halting production while our silver is gathered.” Or do you think it is more likely that they will order MORE silver than necessary to ensure steady production? Chances are, they will secure the metal, price be damned. The ‘price’ won’t matter to them because a computer producer halting production of computers is not an option.

See? You can eat it. |  American Silver Eagles sales record kicks off 2013So the question is this. When silver reaches the point in which it’s price isn’t important, but it’s very availability is in question, where would you rather be?  Will you be in the game as one of those who are in possession of the sought after physical metal? Or would you rather stay outside on the sidelines. Playing it safe with excuses like..’Silver is manipulated, awkward, heavy, and what do I do with it. I can’t eat it.’

The three week hiatus of American Silver Eagles resulted in a slingshot of orders when sales resumed. Procinctu is betting that the same scenario will play out on the industrial level in the future. Whether that future is weeks, months, or years from now, we can not know. But we do know that the author will not be found on the sidelines when it does.

Procinctu can not be held responsible for whatever actions you take. Put your wealth in real money like precious metals or monopoly money like federal reserve notes at your own discretion.