Silver Bullion Coin Sales Heading for Record Highs In 2013

April 1, 2013 at 08:56


Sales of the American Eagle silver bullion coins soared in March, continuing a trend of record breaking sales that has been in force for the past five years.

Prior to the financial crisis, sales of the one ounce American silver eagles averaged about 10 million coins per year. The near collapse of the financial system in 2008 raised profound questions about the integrity of the financial system and the rush to precious metals was on. Since 2008, annual sales of the American Eagle silver bullion coins have soared with average annual sales of over 31 million coins.

According to the U.S. Mint, sales of the American Eagle silver bullion coins totaled 3,356,500 ounces in March, up 32% from comparable sales of 2,542,000 ounces during March 2012. Total sales of 14,223,000 ounces through March 31, 2013 soared by 40.3% over the comparable prior year period.

The previous record year for silver bullion coins was in 2011 when 39,868,500 coins were sold. The 2011 record may wind up looking like a low number compared to projected total sales for 2013. Based on sales for the first three months of the year, annualized sales for 2013 could hit a record shattering 57 million ounces although even this estimate may be too low. As the slow motion collapse of the European banking system speeds up, the looming specter of huge losses by bank depositors could create a total loss of confidence in paper money and ignite a panic move into gold and silver.

The U.S. Mint has vastly underestimated demand for the American Eagle silver bullion coins and was recently forced to suspend sales twice as physical demand for silver soared.

Since 2000, investors have purchased almost a quarter billion ounces of silver bullion coins from the U.S. Mint, worth almost $7 billion based on the current price of silver.