Silver Eagle Bullion Coins Outpacing Gold Coins

Sales of the U.S. Mint’s American Eagle silver bullion coins since the start of the New Year have not only set a monthly record with a third of January still to go, but demand is so strong that dealers say they could be selling even more if not for limited allocations.
Some report that interest in silver coins appears to be outpacing gold coins at the moment, with many favoring the grey metal as a more affordable investment.
The U.S. Mint’s Web site currently shows that 4,588,000 one-ounce coins have been sold so far this month. This is higher than the previous monthly record of 4,260,000 set back in November, said Mint spokesman Michael White.
“It’s insane,” said Jim Hausman, president of The Gold Center, one of the authorized purchasers of Mint coins, which in turn makes them available to the public. “I just can’t believe this demand just keeps growing for Silver Eagles.”
Back in 1996, coin sales for the entire year bottomed at 3,466,000 ounces, the Mint’s Web site shows. “And they do that now in 20 days,” Hausman said.
David Morgan, independent precious-metals analyst with Silver-Investor.com, pointed out that the demand for silver coins has skyrocketed in the last few years, in particular. “Silver Eagles have become kind of the premier silver investment,” he said.

Mint sales for 2010 are listed at a yearly record of 34,662,500 ounces. This tally is more than triple the 9,887,000 sales from 2007, when precious-metals were already well into a decade-long bull market.
“Whatever comes in goes out the same day,” said Terry Hanlon, president Dillon Gage Metals Division, another Mint authorized purchaser. “We’re moving massive quantities, with noticeably bigger interest in silver than gold right now.”
Some of the interest in silver is because one ounce, around $27.70 as of mid-afternoon Thursday, is more affordable for many investors than one ounce of gold around $1,350. “In general, people are becoming more comfortable owning silver and recognizing silver as a good alternative to buying gold,” Hanlon said.
American Eagle gold bullion coins so far in January have totaled 75,500 ounces, which is down from 85,000 in the same month a year ago, according to the Mint Web site.