Ultra-low silver prices have sent demand for physical silver bullion soaring, and the most recent supplier to fall victim to the rush is the venerable United States Mint. Last week, even the US Mint, with its large monthly production figures, completely ran out of 2014 American Silver Eagles!
How Do We Get More US Silver Eagles?
Production of 2014 Silver Eagles has not stopped completely — the US Mint is resuming production on November 17th. However, unless silver prices skyrocket and push down demand, the available supply of 2014 Silver Eagles will be narrow, even with the resumption of production.
Of course, the secondary markets are still awash with back-dated US Silver Eagles, so if customers are content with buying older versions of the Silver Eagle, options are still available. However, it is certainly a buyers’ market, with orders flooding in and mints and their distributors not able to keep up. Unfortunately, price premiums on 2014 American Silver Eagles will likely rise, as distributors are forced to increase prices on the limited stocks of the coins that remain.
A Modern Silver Rush?
Paradoxically, as many investors who electronically invest in precious metals are dumping them, in favor of the higher returns that the allure of the stock market offers, investors who buy physical precious metals are placing large orders, especially for silver bullion. The huge increase in demand has wiped out the inventories of many suppliers — including the United States Mint, as we have discussed above. Why this huge demand for physical gold and silver has not had a push back effect on prices really brings home to us the massive amounts of “paper” metals that are traded behind the scenes.