Last Thursday morning, on September 6, the United States Mint announced that it had temporarily sold out of its 2018 American Silver Eagle Bullion Coins due to unusually high demand. All coin orders prior to the announcement would be honored and shipped.
This inventory sellout marks an unusual shift in investor sentiment, one that signals a bullish reversal from its current state of bearishness.
Since the release of CUSIP’s tracking and tracing of these metals in 2016, the demand for the bullion coin had undergone a sharp decline. Having reached a peak in 2015, selling 47 million bullion coins, Mint sales began dwindling dramatically. By the end of 2017, the Mint had sold a little over 18 million coins; its worst sales performance in a decade. (See Image Below)
With a strengthening dollar and turmoil-driven pressure from emerging markets, many of whose debt obligations were denominated in US dollars, precious metals prices appreciated relative to many foreign currencies but not against the dollar itself.
So far, the US Mint had sold 10.2 million 2018 American Silver Eagle Bullion Coins, nearly selling out its entire inventory. According to sources, the Mint had informed purchasers that it was in the process of producing more coins which should be available on the market soon.
This reversal in demand signals a potentially favorable opportunity for gold and silver investors. As silver prices are currently at a low, purchasing silver at these bottom-level prices presents a value opportunity that may not last much longer. In short, the time to get in is now.