At the end of a week that has seen silver and gold prices surge alternately, the US Mint has now officially announced that it is suspending production of the uncirculated Silver Eagle due to heavy demand for the bullion version of the coin.
As Coin Portfolio Management reported in our post on February 28th, sales of the Silver Eagle had recently hit 6.4 million ounces of silver. Other mints, including the Royal Canadian Mint, had been reportedly considering limiting sales of silver coinage; but the US Mint is the first to actually do so. Indeed, the 6.4 million ounces sold represent nearly 20% of silver mined within the USA.
If the current rate of sales continue, 100% of all silver mined within the USA will be exhausted by summer 2011 on just one product!
Numismatists should watch closely for further news of limited sales or rationing, as already exclusive issues may become that little bit more exclusive. Whilst the silver boom continues, silver coinage will remain a significant purchase.