With the spread of the Global Contagion, the demand for physical precious metals has increased significantly. According to the U.S. Mint’s newest update, another million Silver Eagles were sold over the past two days. This brings total Silver Eagle sales in March to 2.3 million, more than three times the previous month.
On my last update, the U.S. Mint sold a total of 1,345,000 Silver Eagles as of March 9th. Over the next two days, another 975,000 Silver Eagles were sold for a total of 2,320,000.
We haven’t seen this type of buying for quite some time. The U.S. Mint doesn’t sell Silver Eagles directly to the public, but rather to Authorized Purchasers who sell to the public. So, these sales figures represent purchases by the Authorized Dealers. Regardless, if the Authorized Dealers are buying a great deal more Silver Eagles in March, they are doing so because they are experiencing much higher demand from the public.
However, there may be a problem shortly for the Authorized Dealers if the U.S. Mint runs out of stocks of Silver Eagles. Why? Because the U.S. Mint has cut back on monthly production runs of Silver Eagles due to the decreased demand for the past few years. I doubt the U.S. Mint will be able to supply another 1-2 million Silver Eagles in a short period. Thus, we may see the U.S. Mint suspend sales of Silver Eagles shortly until they can increase stocks.
If you do not own any physical precious metals, it may be a good idea to start DIVERSIFYING some assets into Gold and Silver. With the continued spread of the Global Contagion and coming disruptions in the Just-In-Time Inventory Supply Chain, it’s highly likely that demand for precious metals will only increase going forward. With rising demand and constrained supply, we may start to see much higher prices for gold and silver.
About the Author:
Independent researcher Steve St. Angelo started to invest in precious metals in 2002. In 2008, he began researching areas of the gold and silver market that the majority of the precious metal analyst community has left unexplored. These areas include how energy and the falling EROI – Energy Returned On Invested – stand to impact the mining industry, precious metals, paper assets, and the overall economy.