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 American 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 American Silver Eagle available for sale. Often when the coins were available for sale, they were priced at high premiums to the spot price of silver.

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 American Silver Eagle 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.In 2009, the situation has continued.

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 American Silver Eagle and 2009 Uncirculated American Silver Eagle.

Andy Casasanta Silver Snowball member
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