After the recent price smash in silver, investors purchased a record amount of Silver Eagles. In the first eight days of October, the U.S. Mint sold a great deal more Silver Eagles than it did during the same time period in all the months throughout the year.
If we take a look at the chart below, we can see just how strong October Silver Eagle sales are compared to the sales in the typical week in previous months:
Silver Eagle Sales Jan-Sep vs Oct 2014
In the first eight days in October, the U.S. Mint sold 2,250,000 Silver Eagles and is on track to being one of the strongest months of the year. Even though sales were strong last month, the weekly average of Silver Eagle sales in September were only 1,305,000… 42% less than the current trend in October.
While it’s true that I am comparing the first eight days in October to the average week in previous months, I would imagine the majority of October’s sales took place during the first seven days and then were recorded on the following day.
Regardless, the U.S. Mint is selling Silver Eagles hand over fist to investors who believe this is one of the best buying opportunities ever. Not only are first week sales of Silver Eagles stronger than any other month, they have already surpassed the total sales in the month of July and August:
US Mint Silver Eagle Sales Table OCT 8 2014
Furthermore, total Silver Eagle sales for the year are 34.5 million. Last month I forecasted sales would reach a total of 37 million for 2014, however this was before the recent price take-down and huge increase of demand. If sales remain strong throughout the remainder of the year, the U.S. Mint could sell 40-41 million Silver Eagles…. just shy of the 42.6 million sold in 2013.
In addition, investors are purchasing a hell of a lot more Silver Eagles than Gold Eagles:
2014 Silver Eagle Sales = 34.5 million
2014 Gold Eagle Sales = 404,000 oz
2014 Silver-Gold Eagle Ratio = 85/1
Things may get quite interesting in the precious metals markets due to the recent statements by the FOMC. Here are the bullet points (Zerohedge) from the FOMC minutes:
•*FED OFFICIALS SAW GLOBAL SLOWDOWN AMONG RISKS TO U.S. OUTLOOK (growth)
•*FOMC SAID SOME DEVELOPMENTS COULD UNDERMINE FINANCIAL STABILITY (bubbles)
•*FED SAW RISING DOLLAR AS RISK TO EXPORTS, GROWTH, MINUTES SHOW (jawbone USD)
If the FED believes the U.S. Dollar is too strong, along with an increased risk to global financial stability, this could result in monetary policy that would be very favorable for gold and silver.
And… it would come at a pivotal point when the precious metals market sentiment is at all-time lows. Regardless, exchanging increasingly worthless U.S. Dollars for Silver Eagles is a great deal at anytime. Sure, some investors may have purchased Silver Eagles at a higher price, but this won’t matter when the U.S. Dollar and Treasury Market implode.
Lastly…. investors are voting with their fiat money by purchasing 85 Silver Eagles for each Gold Eagle oz. Thus, investors have now spent more money purchasing Silver Eagles than Gold Eagles in 2014–another record.
If we go by the current average annual price of gold and silver (add $30 premium for Gold Eagles and $2 for Silver Eagles), we would have the following:
Estimated Market Value of Gold & Silver Eagle Sales in 2014
2014 Gold Eagle Sales = $531 million
2014 Silver Eagle Sales = $745 million
Again, this is just an estimate, but I would imagine when the U.S. Mint publishes its 2014 Annual Report, we will see that total Dollar sales in Silver Eagles will be higher than Gold Eagles.
The best time to buy Gold or Silver is anytime before the Financial System collapses. The day after… will be too late.