Coin Blog

Amidst the recent decline in silver prices, the US Mint is getting ready for the release of the 2012 Silver Eagle bullion coins. From the launch of the series back in 1986, collectors and precious metals investors have eagerly looked forward to each newly dated release of the series. In recent years, demand for the latest issue has been pronounced.

According to information found online, the US Mint will begin sales for the coins to authorized purchasers on January 3, 2012. The first chance the authorized purchasers will have to pick up the coins will be January 6, 2012. After that point, distribution to the general public can commence.

As has recently been the trend, many of the 2012 Silver Eagles will likely be sent en masse to coin grading services like PCGS and NGC. Coins which receive the top grade of MS70 sell to collectors for a premium. Some will also seek out the coins which are denoted as "First Strike" or "Early Releases" although the utility of such classifications is suspect.

American Silver Eagle bullion coins are frequently sold individually, by a roll of 20 coins, or in a green monster box containing 500 coins. The larger the quantity purchased, generally the lower the cost per coin.

During 2011, the US Mint sold around 40 million Silver Eagle bullion coins as the market price of the metal jumped from $30 per ounce to nearly $50 per ounce, and then fell to its current levels below $30. Will investor and collector demand prove resilient in the coming year?

Later in 2012, it is expected that the US Mint will offer numismatic versions of the American Silver Eagle, which have also been an annual favorite.

With the month about two-thirds gone, the US Mint has already sold 4,588,000 ounces worth of silver bullion through the American Eagle Bullion Program. The total sales for ounces of gold has reached 75,500.

The amount for silver is significant since it already marks a monthly record for American Silver Eagles. The previous record occurred when the US Mint sold 4,260,000 coins in November 2010.

The US Mint has been selling 2011 Silver Eagles since January 3, 2011. Added to this amount are some remaining 2010 Silver Eagles that remained within inventory at the start of the year. Sales have been subject to "standard allocation," which is the US Mint's fancy way of saying "rationing."

The price of silver has recently pulled back from over $30 per ounce to $27.50. Are investors using this as an opportunity to increase their positions?

The American Silver Eagle combines a classic design with one troy ounce of .999 fine silver. This combination has made the coin one of the most popular annual offerings of the United States Mint.

The obverse design is taken from Adolph A. Weinman's Walking Liberty Half Dollar, issued for circulation from 1916 to 1947. Liberty's full figure is depicted striding towards a rising sun, while she holds a bouquet of olive branches and has an American flag draped across her shoulders. The reverse was created specifically for the series and features a heraldic eagle designed by John Mercanti.

The 2011 Silver Eagles will represent the latest year of the series, which began in 1986. The bullion coins are distributed through the US Mint's network of authorized purchasers. They buy the coins in bulk quantities of at least 25,000 ounces based on the market price of silver plus a mark up. The coins are then resold to other dealers and the public.

The first opportunity for the authorized purchasers to order 2011 dated Silver Eagle bullion coins was January 3, 2011. Once order fulfillment begins from the US Mint the coins will make their way into the hands of collectors, continuing the tradition for this beautiful series.

Yesterday, the US Mint sent out a mass email to customers who had ordered the 2010 Proof Silver Eagle through their subscription program. The email very abruptly said that the coin, which won't be released until next week, was sold out.

As it turns out, the email was sent in error and the coins are not sold out. Nonetheless, many people were upset and spent some frustrating hours yesterday trying to figure out what happened.

The email error was very disheartening and shocking for many people. Last year, the 2009 Proof Silver Eagle was canceled, breaking with a traditional offering that had been more than twenty years in the running. The reason for the cancellation was basically because the Mint could not get enough precious metals blanks from its foreign suppliers.

Yesterday's email likely set off a wave of renewed frustration with the operations of the US Mint that has been building for several years. How will collectors react when the 2010 Proof Silver Eagles (hopefully) go on sale November 19? Will the faulty email create an impression of limited supply, or a backlash that results in lower sales?

The US Mint has provided the initial date that they will accept orders for 2010-dated bullion coins to their authorized purchasers. These bulk buyers are able to buy Gold and Silver Eagle bullion coins directly from the United States Mint for resale to the public. Orders will be accepted starting on January 19, 2010.

This represents a delay from the tradition start of orders. In the past, the US Mint has accepted orders in late December for delivery in early January. This has allowed coins bearing the new year's date to reach the market within the first few days of January. The FUN convention held in Florida this week has often been the first venue where collectors purchase the 2010 Silver Eagles and 2010 Gold Eagles.

Will the delayed launch have any impact on sales or demand for the bullion coins? During 2009, the American Silver Eagle reached another record year of sales with more than 28 million sold. The American Gold Eagle sold about 1.3 million, not a record but among the top five years.

Collectors will also be waiting for information on the collectible version of the 2010 Gold and Silver Eagles. Last year, the proof and uncirculated (burnished) versions of the coins were canceled- something that had not happened before during the prior twenty four years of the series.