Silver Eagles: Long Demand, Short Supply

William H. & Nelson B. Hunt AKA The Hunt Brothers testifying before Congress.

Not since the Hunt Brothers attempted monopoly of silver in the 1980’s has silver seen gains of this nature. This leads every conversation we have at Coin Trader Inc. to at least a cursory look at silver acquisition.  The coin inevitably brought up, the U.S. Silver Eagle (1 oz).  It is the coin that brought the U.S. Mint back into the bullion business in 1986.

Even at a current spot price of $37.35 an ounce, silver is only a fraction of the cost of gold. This makes it more affordable to the investor looking to get there feet wet in the bullion markets. It also is the choice of the disgruntled masses – Daniel Brebner of Deutsche Bank told the Financial Times, silver investors dont like where their country is going… particularly the U.S. but elsewhere as well. He went on further, They are looking at other political alternatives, but they’re also looking at diversifying away from conventional assets they’ve held in the past.

The U.S. Mint has sold 12.4 million oz of silver in the first quarter of the year, setting new records. This is roughly 6% of all global production of silver in the same period. The Canadian Mint has a similar problem that has led to shortages of the popular Silver Maple Leaf . David Madge, the head of bullion sales at the Canadian Mint, told the FT, the sales of  silver maple leaf coins remain robust with demand still exceeding our supply.

All of this has made the average wait for 1 oz silver coins from the various mints approximately 3 weeks, at time it is longer. The experts are calling for $50 silver by the end of the year. This will continue to drive the market and keep the supplies short. We recommend silver as part of a balanced portfolio but when ordering just remember there will be a delay. This shortage is for the long term and doesn’t look to be easing anytime soon.

See more – Financial Times: Americans feather nests with silver Eagles


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