The Shortage of American Silver Eagle Bullion Coins

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Article Title: The Shortage of American Silver Eagle Bullion Coins
Author: Michael Zielinski
Category: Collecting, Hobbies
Word Count: 459
Keywords: silver eagle, silver bullion, united states mint
Author's Email Address: orange.coins@yahoo.com
Article Source: http://www.articlemarketer.com
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One of the results of the current economic downturn has been an increased interest in precious metals. People have sought to purchase precious metals for the purpose of hedging against inflation, diversifying assets outside of world currencies and financial products, and investing in a store of value that has existed since ancient times. World mints have struggled to keep up with the increased demand. A case in point has been the shortage of American Silver Eagle Bullion coins experienced in the United States.

At the end of February 2008, the increasing level of demand finally exceeded the supply of silver bullion coins that the United States Mint was able to produce. A suspension of Silver Eagle bullion coins was announced until the Mint could replenish its inventory. The suspension was in place for less than one month, but when sales resumed in April, the number of bullion coins that could be ordered was rationed.

The rationing process allocated a certain number of coins to each authorized purchaser. An additional amount of coins were allocated amongst the dealers based on historical sales levels. This rationing often made it difficult for individuals to find the silver bullion coins available for sale. Often when the coins were available for sale, they were priced at high premiums to the spot price of silver.

Similar suspensions and rationing programs were implemented for some of the United States Mint's other bullion coin products. This included American Gold Buffalo Coins, American Gold Eagle Coins, American Platinum Eagles, and fractional gold bullion coins.

The reason behind the rationing is that the United States Mint has been unable to obtain a sufficient supply of precious metals blanks to manufacture enough coins to meet public demand. The US Mint must compete with other world mints for the limited supply which remains available amidst the booming demand. Some other world mint have also buckled under the pressure and were forced to implement similar suspensions or rationing programs.

In 2009, the situation has continued for the US Mint. The 2009 Silver Eagle coins continue to be subject to rationing, although the blank supply situation may be slowly abating. The US Mint managed to produce a near record number of Silver Eagles during the month of March. Several other bullion coins have had their releases delayed.

Coin collectors, who purchase coins for their collectibility of aesthetic features, have also been impacted by the shortage. Under United States law, the Mint must produce bullion coins to meet public demand. They are not required to produce coins for collectors. This has forced the Mint to prioritize production to silver bullion coins and delay the launch of collector coins. The collector coins expected to be released later in 2009 include the 2009 Proof Silver Eagle and 2009 Uncirculated Silver Eagle.

Michael Zielinski is an internet entrepreneur and coin collector. Find complete information on Silver Eagles at http://silvereagleguide.com/ or follow the developing situation with the 2009 Silver Eagle http://silvereagleguide.com/2009-silver-eagle/
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