U.S. Mint Has NOT Halted Production of Silver Eagles
TDC Note II – August 22, 2016. I learned earlier today that the U.S. Mint has NOT halted production and what has happened is the Authorized Purchasers (AP) have halted or slowed purchases to a snails pace. The AP’s have so much inventory they can not move it quick enough to justify adding more inventory. This must be the case as there is no official word published at the U.S. Mint and earlier today, there were a couple of phone calls made to the U.S. Mint and the Mint confirmed they have NOT halted production.
As silver moves higher this could have a profound effect on the remainder of the year and the number of ASE’s that are produced. Veteran stackers, the retail investors, are either loaded up with $14 silver and have no need to add to their stack at these levels or the new stackers are not gobbling up the ASE’s at a “record pace”. It could be a combination of the two. The new stackers, for the most part, are going to have less investment capital to put into silver due to the fact we are in either a very deep recession or an outright depression. Jobs are scarce and good paying jobs are a rarity. Please keep in mind the U.S. economy is not the only economy suffering under this current nightmare known as QE, ZIRP and NIRP – it is global. Most, if not all, Western “developed” countries are under these mandates by their central bank. This is effectively killing the local, regional and global economies for all. Do I buy a couple of ounces of silver or do I buy food for my child? Not much of an argument.
Will we see 2016 ASE’s sold in 2017 due to the fact the market is soft, globally? Only time will tell. I can assure of this: in the future any story of this nature will be 100% verified before it is published at The Daily Coin. We believed what we had read to be fact and ran with this story before verifying – this will not happen again.
TDC Note – I had predicted – back in May – the U.S. Mint would NOT post a new all time sales record. At the time I had no idea that production would STOP!!
On May 31, 2016 I interviewed the Doc
Louis Cammarosano, Smaulgld, and I have discussed this for the past three months on a biweekly basis. You can hear all our conversations pertaining to the plunging GLOBAL demand at the retail level by clicking here.
US Mint Halts Silver Eagle Coin Production Due to Lack of Demand
originally published August 19, 2016
Over the past several weeks we have documented the plunge in Silver Eagle sales at the US Mint from approximately 1,000,000 coins a week throughout the entire first half of 2016 to around 150,000 coins a week over the past month.
The lack of Silver Eagle sales has reached a point where the US Mint has reportedly just Halted Production entirely of 2016 Silver Eagle BU coins.
In a conversation with the VP (who requested to remain anonymous) of one of the US Mint’s Authorized Purchasers Friday, SD Bullion was informed that the US Mint has halted production of BU Silver Eagle coins.
The AP estimates that the US Mint has built up a supply of at least 5 million Silver Eagle coins, and with sales this week around 150,000 coins for the 3rd week in a row, the Mint has made the decision to Halt Production entirely
The AP confirmed the market intelligence we have been sharing with Metals and Markets listeners for weeks – that the AP’s collectively began working 4-6 weeks ago to reduce large Silver Eagle coin inventories, resulting in a cliff-dive in sales at the US Mint.
The VP we spoke with advised that if the trend continues, he expects the US Mint to be stuck with a large inventory of 2016 coins at the end of the year, which means The Mint will Likely Force AP’s to Purchase 2016 coins in 2017 to liquidate their stockpile (and yes, the US Mint has a strong precedent of strong-arming the AP’s to take down inventory of back dated coins they don’t want at the same pricing as CY coins if they wish to continue their relationship).
This means the historically low premiums investors have enjoyed on Silver Eagle coins over the past several months will likely continue throughout the remainder of 2016, barring an unforseen systemic market event.