This month American Eagle silver coins have reached an all time high in sales due to the number of people looking for a different currency option as the U.S. central bank continues to move towards unprecedented stimulus.
According to mint data the sales for this month have reached 7.42 million ounces so far this month while in December of 2012 total sales only reached 1.635 million ounces. This month is the largest amount of silver sales since 1986.
The high demand for silver is being supported by the loose monetary policies and increased industrial consumption. In a report on January 24th Morgan Stanley, a multinational financial services corporation, described the metal as “cheap gold proxy.” Since 2008 the price of silver has more than doubled and today the U.S. Federal Reserve is ending their two-day meeting regarding boosting stimulus to spur a recovery. This month investment holdings have hit record numbers.
On a telephone interview with Anthem Blanchard, the chief executive officer of Blanchard Vault an online gold and silver retailer based out of Las Vegas said, “The quantitative easing has helped boost sales as people are worried about currency debasement and future inflation,” “We expect demand to remain buoyant.”
Due to the lack of inventory to meet the demand for silver the Mint stopped silver sales a week ago but put an end to the suspension on January 28th resuming the sales of silver. Like 2013 American Silver Eagle sales, American Gold Eagle sales have risen this month too by 84% and hit its highest monthly total since July 2010.
On the Comex in New York, silver showed a gain of 1 percent to $31.50 an ounce, advancing a second day for the March delivery. A metal that was traded in London this morning has risen 4 percent this year while central banks from U.S. and Japan promise more stimulus to increase growth.
Information gathered by Bloomberg displayed that on January 29, 2013 global holdings in exchange traded products were 19,407 metric tons, only 1.5 percent shy of the record held on January 18, 2013 with 19,699 tons. Morgan Stanley believes that investors will likely add 750 tons of exchange traded products this year.
44 economists took a Bloomberg survey that indicated that they believe Fed Chairman Ben S. Bernake will move forward with purchasing $40 billion a month in mortgage bonds and $45 billion a month of Treasuries on through to the first quarter of 2014.
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