US mint suspends production of silver eagles-again

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investorzzo
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US mint suspends production of silver eagles-again

The U.S. Mint Has Suspended Production Of Silver Eagles - Again
I was not aware of this until today, but the press release reads like silver eagle production has been suspended for awhile.  Here's the press release:  LINK

I was told a while ago by someone who is in a position to know that the Mint was under instructions to produce as many gold and silver eagles as possible this year in order to avoid the perception that silver supplies are tight.  This is why big coin dealers like Tulving seem to have an endless supply of silver eagles.

However, this same source also said that he expected, based on thorough knowledge of the entire industry, that there would be a severe silver shortage starting sometime in 2011.

I guess that shortage may have started a bit early...

http://truthingold.blogspot.com/2010/12/us-mint-has-suspended-production...

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Re: US mint suspends production of silver eagles-again

"Production of United States Mint American Eagle Gold Uncirculated Coins continues to be temporarily suspended because of unprecedented demand for American Eagle Gold Bullion Coins. Until recently, all available gold bullion blanks were being allocated to the American Eagle Bullion Coin Program, as the United States Mint is required by Public Law 99-185 to produce these coins “in quantities sufficient to meet public demand . . . .”

Although the demand for precious metal coins remains high, lower demand for bullion orders in August and September allowed the United States Mint to meet public demand and shift some capacity to produce numismatic 2010 American Eagle Gold Proof Coins.

However, due to the continued, sustained demand for American Eagle Gold Bullion Coins, 2010-dated American Eagle One Ounce Gold Uncirculated coins will not be produced. American Eagle Uncirculated Fractional Coins were discontinued after the 2008 program year.

The United States Mint will resume production of American Eagle Gold Uncirculated Coins once sufficient inventories of gold bullion blanks can be acquired to meet market demand for all three American Eagle Gold Coin products."

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Re: US mint suspends production of silver eagles-again
saxplayer00o1 wrote:

"Production of United States Mint American Eagle Gold Uncirculated Coins continues to be temporarily suspended because of unprecedented demand for American Eagle Gold Bullion Coins. Until recently, all available gold bullion blanks were being allocated to the American Eagle Bullion Coin Program, as the United States Mint is required by Public Law 99-185 to produce these coins “in quantities sufficient to meet public demand . . . .”

Public Law 99-185 is scheduled for modification by H.R. 6162 Coin Modernization, Oversight, and Continuity Act of 2010 which replaces the above wording with:

"in quantities and qualities that the Secretary determines are sufficient to meet public demand"

http://news.goldseek.com/GoldSeek/1291734960.php

While the revised wording might simply be to allow flexibility to produce the numismatic versions, such as uncirculated and proof coins (no 2009 proof Silver Eagles were struck), some are concerned that the program may be scaled back as silver coin demand approaches annual US silver production. 

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Re: US mint suspends production of silver eagles-again

Interesting.  Thanks for the post.  I am a regular buyer of gold bullion and silver bullion.  I've visited two different coin shops this week.  Both seemed to have higher than usual inventories of silver eagles and silver maples.  Probably because some locals brought in silver to sell due to the $3- price.  I understand that three weeks ago it was difficult to find silver eagles in any local shop.    You can still get monster box silver from tulving for a reasonable price.  I think price of gold and silver is going to keep going up steadily and deliberately for at least many months to come.

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Re: US mint suspends production of silver eagles-again
SteveW wrote:
saxplayer00o1 wrote:

"Production of United States Mint American Eagle Gold Uncirculated Coins continues to be temporarily suspended because of unprecedented demand for American Eagle Gold Bullion Coins. Until recently, all available gold bullion blanks were being allocated to the American Eagle Bullion Coin Program, as the United States Mint is required by Public Law 99-185 to produce these coins “in quantities sufficient to meet public demand . . . .”

Public Law 99-185 is scheduled for modification by H.R. 6162 Coin Modernization, Oversight, and Continuity Act of 2010 which replaces the above wording with:

"in quantities and qualities that the Secretary determines are sufficient to meet public demand"

http://news.goldseek.com/GoldSeek/1291734960.php

While the revised wording might simply be to allow flexibility to produce the numismatic versions, such as uncirculated and proof coins (no 2009 proof Silver Eagles were struck), some are concerned that the program may be scaled back as silver coin demand approaches annual US silver production. 

 Or more likely, the mint has to buy it's own silver now, as they sold it back in 2001. Some 3 Billion ounces. Perhaps it's having trouble accumulating ounces in a market that has very little excess. Jon

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Re: US mint suspends production of silver eagles-again

ScotiaMocatta Sells Out Of Silver Bars

http://www.zerohedge.com/article/scotiamocatta-sells-out-silver-bars

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Re: US mint suspends production of silver eagles-again
investorzzo wrote:

ScotiaMocatta Sells Out Of Silver Bars

Interesting but I find it hard to evaluate the significance. Maybe they're just out of stock for a day or two or maybe they need everything they can lay their hands on to hedge. There seems to be no problem with availability at Kitco.

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Re: US mint suspends production of silver eagles-again

Ranch,

I'd keep your game face on as the guys over at Institutional Advisors turned me on to weekly Silver: Gold ratio. They look at this ratio's RSI. I look at trend or Directional Movement (ADX). (RSI and ADX are used in technical analysis). There is a parabolic increase in the weekly ratio chart both price and ADX trend momentum. If we were far into stage 2 of this precious metal rally, I could accept this off the chart  behavior. However we still have a way to go to complete phase 2. When I backtest with weekly, there are not many buy/sell signals but the one's generated over past 4-5 years look awfully convincing

If anyone sees something different besides the fundamentals which I buy into, please post

Be ready,

Joe

 

 

 

 

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Re: US mint suspends production of silver eagles-again
jpetr wrote:

Ranch,

I'd keep your game face on as the guys over at Institutional Advisors turned me on to weekly Silver: Gold ratio. They look at this ratio's RSI. I look at trend or Directional Movement (ADX). (RSI and ADX are used in technical analysis). There is a parabolic increase in the weekly ratio chart both price and ADX trend momentum. If we were far into stage 2 of this precious metal rally, I could accept this off the chart  behavior. However we still have a way to go to complete phase 2. When I backtest with weekly, there are not many buy/sell signals but the one's generated over past 4-5 years look awfully convincing

If anyone sees something different besides the fundamentals which I buy into, please post

Be ready,

Joe

Joe, sounds about as good as anything I've got. The real story will be when the next big downturn in the market occurs, whether metals investors will sell off to. When the last big sell off occured we were in the first phase of accumulation in the metals, now we are in the second phase. I'm holding no matter what, but am accumulating as much cash as possible for any major dips. As any dips will be met with massive buyers who missed or like me see an opportunity.  I think were going higher first. Jon

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Re: US mint suspends production of silver eagles-again

Joe, here we see a chart that shows just how little that dip will be in the bull market of metals. Notice the dip in 2008 and bottom of 2009. Jon

http://jsmineset.com/wp-content/uploads/2010/12/Year-end-Gold-and-CCI-20...

 

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Re: US mint suspends production of silver eagles-again
jpetr wrote:

Ranch,

I'd keep your game face on as the guys over at Institutional Advisors turned me on to weekly Silver: Gold ratio. They look at this ratio's RSI. I look at trend or Directional Movement (ADX). (RSI and ADX are used in technical analysis). There is a parabolic increase in the weekly ratio chart both price and ADX trend momentum. If we were far into stage 2 of this precious metal rally, I could accept this off the chart  behavior. However we still have a way to go to complete phase 2. When I backtest with weekly, there are not many buy/sell signals but the one's generated over past 4-5 years look awfully convincing

If anyone sees something different besides the fundamentals which I buy into, please post

Be ready,

Joe

 

 

 

 

Joe,

Be ready for what?  I regretfully do not understand a word of your post, but I can tell what you are saying is significant.

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Re: US mint suspends production of silver eagles-again

 

If you are doing speculative trading on silver, I would not expect to stay in positions for the next two to three months and not expect a pullback. 

I think Jon's charts reinforce what I have been seeing since August. Every time there is the slightest pullback, demand picks up and prices recover in a matter of days/weeks especially for silver. With the next target being $32 for silver, I would not be surprised to see another high form and then a pullback. IMHO the next pullback might be > 5% based on the rapid rise.

Joe

 

 

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Re: US mint suspends production of silver eagles-again

Duly noted, thank you for the clarification.  I suppose this is exactly what we are seeing now...

 

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Re: US mint suspends production of silver eagles-again

Yes this is it. Great buying opportunity as after this correction we will see gold and silver rocket.

My only concern is after I averaged in at PSLV @ 13 yesterday, more shorting tomorrow morning may be in store. 29-29.30 is key support for silver. On silver shortage, this is very interesting and confirms various sources on silver shortage.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/1/5_John_Embry_-_Gold_Over_$2,000,_Silver_Above_$50_in_2011.html

I know we are talking silver here but this thought may add another option for you. Doug casey made a comment that the junior gold miners (GDXJ) will resemble the technology stocks of the 1990s. If you can get GDXJ between 34-37, I'd consider. Om portfolio allocation, sound advice was keep miners <5% of your portfolio

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