Silver eagles are flying high! The U.S. Mint reports the first two months of 2016 indicates an annualized amount of American Silver Eagles between 55 and 60 MILLION ounces!! You read that right — 55 to 60 MILLION. We can only hope the U.S. Mint decides to continue rationing the amount of ounces released throughout 2016!!
To put this into proper perspective the YEARS between 1986 and 2007 — 21 years in total – the U.S. Mint produced fewer American Silver Eagles for the entire YEAR than the U.S. Mint has produced and released in the first two MONTHS of 2016.
Take a look at this chart:
Please keep in mind the “allocated” (read rationed) sales of Silver Eagles means the U.S. Mint is producing what is suspected to be less than market demand. Where would these figures be in a free flowing market? Would they be substantially higher? Would they about the same? We will never know. What we do know is this: The Perth Mint out of Australia, began producing the Kangaroo coin to compete with the Silver Eagle and Royal Canadian Mints Silver Maple Leaf. The Silver Maple Leaf is on rationed quantities like the Silver Eagles. What has happened is the Perth Mint is now producing well over 500,000 more coins per MONTH than previous years. In the past the Perth Mint averaged 300,000 silver coins per month and their production has increased to just over a MILLION per month.
Here is another chart to give you a visual:
Will the U.S. Mint be able to continue producing just over 5 million ounces of Silver Eagles per month? Will we be witness to rationed volumes throughout all of 2016? Will the Silver Kangaroo continue to grow in popularity? Only time will be able to answer these questions and so many more.
When you have idiots deciding monetary policy for their personal gain and gains for their friends, people eventually wake up to the corruption. The Federal Reserve has toyed with our economy to the point that people, worldwide, are growing weary of having their wealth stolen to enrich a handful of people. The move into silver and gold is one way that people are able to protect their wealth and we are seeing the first stages of the third phase of this massive gold bull market. When this phase reaches it’s peak – look out!! Got physical?
Louis Cammarosano, Smaulgld, and I break down what has happened over the past the month and review the impact of rationing volumes and some of the reasoning behind it.