By: Silver Institute

Unprecedented investor demand has caused a market shortage for American Eagle Silver Bullion Coins, and the Silver Institute has called on the U.S. Mint to take immediate steps to increase production of this popular physical precious metal investment vehicle.

Today, the Silver Institute has written to the Director of the U.S. Mint expressing its concern over published reports that the coins are essentially being rationed to thirteen authorized dealers, reflecting a major kink in the supply chain, thereby making it difficult in many cases for consumers to purchase them. Silver Institute Executive Director Michael DiRienzo said, “It’s clear that the Mint misjudged the strength of the current silver market, and we are encouraging the Mint to take immediate steps to increase its production of these popular investment coins and plan accordingly for the balance of 2008 and for 2009. The trend line is clear, silver investment is on the rise, so the Mint should position itself to take advantage of this market momentum.”

Congressionally authorized American Eagle Silver Bullion Coins provide investors with a convenient and cost-effective way to add physical silver to their investment portfolios. Since their launch in 1986, American Eagles have become a leading silver bullion coin investment product and have produced over 165 million one-ounce coins, with 9.8 million sold in 2007, and already over 7.2 million have been sold in just the first 5 months of 2008.

Understanding that demand for the extremely popular coins is strong, the Silver Institute is urging the Director of the U.S. Mint to consider methods for streamlining the silver Eagles’ production process.

“We are very concerned about interruptions in this market and have requested a meeting with the Mint Director to seek stability for this important silver coinage program,” DiRienzo added.

A copy of the letter from the Silver Institute to the U.S. Mint can be viewed at http://www.silverinstitute.org/news/DirectorMoyMay29.pdf. (more…)

Record gas prices and climbing food costs combined with the eroding the value of the dollar, have pushed the American Silver Eagle $1 bullion coin to more than $20.

Demand for the Silver Eagle, which is one ounce of 99 percent-pure silver, has become such a popular option for investors that the U.S. Mint can’t keep up with demand and has limited sales.

The mint has already sold about 7.6 million of the ASE coins in the first quarter of 2008 alone. Typically the annual mintage is between 8 million and 9 million coins per year.

“I think the 2008 Silver Eagles aren’t going to be scarce, they’re just going to be expensive because everyone wants one,” said one bullion dealer.

Despite the large number of silver coins in the market, the mint, a bureau of the U.S. Treasury, sent a memo to dealers last month stating that it would limit allocations to distributors.

The letter said: “The unprecedented demand for American Eagle Silver Bullion Coins necessitates our allocating these coins on a weekly basis until we are able to meet demand.”

Silver closed Wednesday down 45 cents to $17.38 per ounce on the New York Mercantile Exchange. But prices have doubled in three years and a case of 500 coins now sells for close to $10,000.

The mint has authorized only 13 buyers worldwide who can directly purchase the coins. The mint charges the going price of silver, plus a small premium, to this select number of brokerage companies, wholesalers, precious-metals firms, coin dealers and banks. One of those buyers, Coins ‘N Things Inc. in Bridgewater, Mass., said it has seen demand double compared to last year. (more…)

Gold and silver coins featuring the late Sir Edmund Hillary against a backdrop of Mount Everest were released in New Zealand on Thursday, the 55th anniversary of his historic ascent of the world’s highest peak with Sherpa Tenzing Norgay.

New Zealand Post, which issued the commemorative coins, said part of the proceeds of their sale would go to the Himalayan Trust that Hillary established for the Sherpa people of Nepal.

One of New Zealand’s best loved national heroes, Sir Edmund Hillary’s life was filled with many great achievements that earned him worldwide fame.

The first man to conquer Mount Everest in 1953, Sir Edmund Hillary went on to devote much of his life to improving those of others, especially the people of his beloved Nepal.

Following his passing in January 2008, and with the exclusive support of Sir Edmund Hillary’s family, this very special New Zealand coin release pays tribute to this extraordinary but humble man who will be remembered for ever. (more…)

Gold extended losses to trade below $900 an ounce on Wednesday, as a sharp decline in oil prices lowered the metal’s appeal as a hedge against inflation.

Other precious metals followed gold, with platinum slipping more than 3 percent, silver falling 1.8 percent and palladium dropping around 1 percent in a broad commodities sell-off.

Gold fell about 2 percent to a two-week low of $889.35 am ounce and was quoted at $893.70/894.70 at 1007 GMT, against $907.10/908.30 in New York late on Tuesday, when if fell about 2 percent.

“Whenever we get a weaker dollar and stronger oil, it’s fantastic for gold and the reverse is playing out now,” said Nick Moore, global commodity analyst with ABN AMRO. “It’s a general commodity sell-off that we’re seeing which has embraced not only oil but also industrial metals and precious metals. This pullback is good for gold. This is a chance for them (physical buyers) before gold has its next run.”

Oil fell more than $2 a barrel, extending a slide from the previous session amid growing signs Asian demand could start to falter as consumer nations look to cut subsidies by raising local fuel prices.

Gold often moves in the opposite direction of the dollar. “With the most of the recent gains in gold coming largely from the rally in crude oil, it is obvious that as crude retraces back, gold would reflect that too,” Read Full Article

By David L. Ganz, Numismatic News

As the 110th Congress sprinted to a Memorial Day recess, a number of numismatic measures were passed by the House of Representatives May 15.

They now go to the Senate. Some deft parliamentary maneuvers and stealth actions are part of the package.

Foremost on the list is H.R. 5614, a bill whose initial appearance and very title gave the impression that the Mint was being asked to enter mainline production and reproduce a Saint-Gaudens ultra-high-relief gold double eagle. (The original bill’s name was worded this way: “This Act shall be known as the ‘Original Saint-Gaudens Double Eagle Ultra-High Relief Bullion Coin Act’).

The name suggests a gold coin that was fabled a generation ago as a production nightmare that took seven bold strikes on the Mint’s coining presses to bring up the design. The real purpose of the bill, however, was the working miners of Montana who produce palladium - the stealth nomenclature opts for that design with the new metal for the Mint to produce.

A gold 27mm pattern replica is the design choice. As the bill’s legislative history notes, “a 34-millimeter version was hand-struck on a standard double eagle planchet using a medal press and, because manufacturing and technical limitations prevented mass production of these pieces, this production resulted in low mintage, with fewer than two dozen specimens of the 34-millimeter version known to be in existence today.”

It goes on to note that “a second, 27-millimeter, version was struck using two stacked $10 eagle planchets,” which is the coin being reproduced in gold for collectors. But the real purpose of the bill is not gold but to produce palladium coinage.

Read the Full Numismaster Article Here