Collectors Article Of The DayAmerican Eagle Silver Dollar Coins - The Reasoning Behind the Rationing
By Christina Goldman
American Eagle silver dollars collectors are angry. And with good reason. In March, the U.S. Mint suddenly stopped taking orders for the silver bullion coins. And in late May, it imposed purchasing limits on its 13 world-wide authorized buyers.
The U.S. Mint has limited silver purchases before, in the late 1990's. Investors loaded up on the precious metal, fearing that the economy would be crippled by the computers' inability to adjust to the new millennium. The U.S. Mint has explained the rationing as a necessary decision, due to the unprecedented demand for the American Silver Eagles.
In 2008, The U.S. Mint sold 6.8 million American Eagle Silver Coins. That is twice the amount that was sold in 2007. In March alone, sales of the Silver Eagles surged to 1.85 million, nine times the amount sold in February! Clearly, the U.S. Mint has misjudged the strength of the silver bull market and the demand for the American Eagle Silver Dollar coins.
But what has caused this unprecedented demand for these silver bullion coins? Here are a few possible reasons:
The price of silver is soaring. On January 3rd, 2000, the first trading day of the new millennium, the spot price of silver traded at $5.41. Recently, the spot price of silver has traded as high as $20 an ounce, a 386 percent return on investment!
Traditionally, more silver is mined each year than gold. Therefore, silver is much cheaper and more affordable for individual collectors to purchase than gold.
The American Eagle Silver coin is the only American silver coin that can be invested in an IRA. Thus, buying Silver Eagles are an easy way for a small investor to participate in the silver bull market.
But, is this increased demand the only reason for the rationing of these Silver Eagle Coins?
Rumor has it that the U.S. Mint has run out of the planchets used to create the coins. A planchet, or blank as they are sometimes referred to, is a round metal disk that is ready to be struck into coins. These planchets are also used to create coins other than the American Silver Eagles, and the companies that produce the planchets are busy, limiting the supply received by the U.S. Mint.
The Silver Institute, a nonprofit international industry association headquartered in Washington, D.C., has written a letter to the Director of the U.S. Mint, urging it to take immediate steps to increase production of the popular Silver Eagles. With silver bullion on the rise, the Silver Institute has asked the U.S. Mint to consider alternative methods for streamlining the production process of the American Eagle Silver Dollar coin.
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In the meantime, silver investors can scour flea markets, coin shops, and estate sales for silver eagles. Or they can visit http://bullionbargains.com for a great selection of American Eagle Silver Dollar coins for sale at fantastic prices.
Paper Money & Coin Collecting News
The universe of coins and currency is one of the greatest portals to history available to the intelligent collector. Money has always been one of the most important things in society: it represented a store of value, provided news and propaganda and was an integral part of everyday commerce. The ability to own and collect old coins and paper money allows the collector to truly hold history in his hands, to transport himself to another time and place, and to cherish his own museum quality items.
Buy US paper money.
Gold accounts can be started with major banks. Typically those speculating in gold usually resort to this sort of account with commodity brokers or private bankers.
Buy gold coins.
The $20 Saint Gaudens Double Eagle gold coin has been considered by many to be one of the most beautiful coins ever created. In addition to its beauty, investors privately acquire this gold coin which has outperformed gold bullion. This gold coin the Twenty Dollar gold piece also known as the Double Eagle is placed in the portfolios of investors worldwide for privacy and the guarantee that the United States government cannot go back and make anymore of these coins.
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I recommend filtering for volume. Check out the eBay sellers who have done several hundred gold sales or more. These are the gold bullion sellers you can trust assuming they also have a high positive feedback score. Volume indicates that they have been in the business for a while and must be doing something right. You will always end up paying a premium when you buy from a high volume seller. It's always worth it. Let's take a simple example. You buy a 1/10 ounce gold bullion American Eagle from a new seller. You get a super deal and only pay $100. Now, let's say you buy the same coin but pay $120 from a power seller. Let's say the first one ends up to be a fake and the second is real. You pay an extra $20 but isn't that better than getting something worth $0 with your hard earned investment dollars? I always go with the high volume sellers.
Buy Kangaroo silver dollars for a great investment.
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