Sale of Silver Eagles on Pace to Break Record in 2015

Sales of American Silver Eagle bullion coins shot through the roof over the past several months and will likely break a record in 2015.

According to a Newsmax Finance report, 2015 sales year-to-date are ahead of last year’s pace. Through the third week in October, sales stood at 38,986,000 ounces. That compares to last year’s 38,121,000 ounces. If this trend continues, 2015 sales will exceed last year’s record of 44,006,000 ounces.

Newsmax points out sales would be even higher if it weren’t for persistent shortages. Demand has outstripped the mint’s ability to produce Silver Eagles fast enough. The coins have been on and off allocation for the last six month. All things considered, Newsmax called the numbers “nothing short of astonishing.”

Pre-Financial Crisis sales were 9,887,000 ounces in 1997.  They doubled in 2008 to 19,583,500 ounces and they doubled again by 2011 to 39,868,500 ounces.  Sales have increased and set new historical records every year except 2012.”

So, what drives this ever-increasing demand?

Several factors likely play a role.

According to Newsmax, a weakening American economy has “cast doubts on the efficacy of quantitative easing and low interest rates.” That in turn erodes long-term confidence in the dollar:

In times of economic uncertainty, investors usually want to hedge their bets by diversifying their portfolios into tangible assets like silver. Most individual investors do not have the same hedging alternatives that institutional investors do.”

The fact that the silver-to-gold ratio is out of whack also indicates silver is currently a good buy. Historically, it’s taken about 50 ounces of silver to buy an ounce of gold. Today, the ratio is close to 74-to-1. That indicates silver is likely underpriced.

While it’s not necessarily easy to pinpoint specifically what’s driving demand, as Newsmax points out, the effect is undeniable:

It is a definitive fact that the record breaking demand for American Eagle bullion coins cannot be met by all the 440,555,000 ounces minted and issued by the United States Mint since the program began in 1986. This demand has required the Mint to break manufacturing records each year, only to continue to have supply fall short of demand.”

Analysts say they expect high demand for Silver Eagles to continue.

As we reported earlier this fall, demand for silver has jumped in general over the past year. The use of silver in manufacturing, its expanding application in the healthcare field, and increasing demand for silver jewelry have all helped drive the surge. Imports of silver into the United States jumped 11% through the end of May.

You can learn more about the reasons behind silver’s growth and what will continue driving it in the future in Peter Schiff’s report The Powerful Case for Silver. You can download the free report HERE.

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