Production of American Eagle Silver Coin Suspended

Announced today March 2nd 2011 by the US Government Mint is the following:

Production of United States Mint American Eagle Silver Uncirculated Coins continues to be temporarily suspended because of unprecedented demand for American Eagle Silver Bullion Coins. Until recently, all available silver bullion blanks were being allocated to the American Eagle Silver Bullion Coin Program, as the United States Mint is required by Public Law 99-61 to produce these coins “in quantities sufficient to meet public demand . . . .” ...However, because of the continued demand for American Eagle Silver Bullion Coins, 2010-dated American Eagle Silver Uncirculated Coins will not be produced. The United States Mint will resume production of American Eagle Silver Uncirculated Coins once sufficient inventories of silver bullion blanks can be acquired to meet market demand...

So basically -- because of demand, they have run out of supply. But because of demand, they will continue to not supply them? I think the mangled phrasing is pointing out that because of the run on silver, they don't want to buy the silver blanks at this time because they think they cost too much? But if silver continues to rise (and in my opinion that is a sure bet) then they won't be buying more blanks, thus they won't be producing more silver American Eagles. Until when? If silver goes to $40/oz, $50/oz -- then what? At what point do they resume production?

Bigger issue (and this is why I posted this) -- is this another sign of the crumbling of the dollar and that precious metals are going to continue their advance? Comments?

Originally posted by SunSword
Bigger issue (and this is why I posted this) -- is this another sign of the crumbling of the dollar and that precious metals are going to continue their advance? Comments?

Yes, I think it is another sign of dollar doom, but I also think that 'they' really aren't keen on us having anything of true tangible wealth either. It wouldn't surprise me if they've made a false crisis to keep more of the real thing from getting into our hands.

Physical silver has seemed to be in short supply lately, and I think lots of investors who've been content with 'paper' silver are now seeing the light and demanding the physical metal.

reply to post by SunSword


Are those the ones sold on late night informercials? "It can be yours for only $19.99, call the 1-800 number on your screen now. And if you call within the next 60 seconds you'll get a set of Ginsu knives FREE!"

Originally posted by bg_socalif
reply to post by SunSword

 

Are those the ones sold on late night informercials? "It can be yours for only $19.99, call the 1-800 number on your screen now. And if you call within the next 60 seconds you'll get a set of Ginsu knives FREE!"

No. They are 99.93% pure silver. This is what they look like: