With the latest GDP reports presenting unexpectedly dismal figures and the Federal Reserve reaffirming its commitment to continue its stimulus program, U.S. Mint sales of American Eagle silver coins rose to record highs in January.
Thus far, 7.42 million ounces have been sold—that’s the highest since 1986. Back in December, sales were just at 1.635 million ounces.
Silver has joined gold in becoming an attractive safe hedge against continued economic turbulence and low faith in the markets.
Bloomberg reports:
“The quantitative easing has helped boost sales as people are worried about currency debasement and future inflation,” Anthem Blanchard, chief executive officer of Blanchard Vault, a Las Vegas-based online retailer of gold and silver, said in a telephone interview. “We expect demand to remain buoyant.”
Demand was so high that the Mint had to suspend sales of American Eagle silver coins for more than week, after it reported having run out of stock.
Silver futures for March were up 1 percent at $31.50/oz on the New York Comex yesterday and has risen 4 percent over the year on continued central bank stimulus actions.
Meanwhile, worldwide exchange-traded products holdings rose to 19,407 metric tons as of Tuesday, bringing numbers within 1.5 percent of the record high of 19,699.
It’s expected that investors will continue to add more tons to the ETPs through 2013.
