by Steve St. Angelo, SRSRocco Report:
The U.S. Mint has sold nearly 5 million Silver Eagles in the first three weeks of the year compared to only 87,500 oz of Gold Eagles. This is a Big trend change compared to the previous three years, as the Silver-to-Gold Eagle buying ratio has more than doubled.
For example, the U.S. Mint Silver-to-Gold Eagle sales ratio ranged between 22/1 and 27/1 from January 2021 to 2023. However, the U.S. Mint has sold 56 times more Silver Eagles than Gold Eagles so far in January. It seems that investors are taking more advantage of the lower silver price than the $2,000+ gold price.
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It just makes economic sense to acquire Silver Eagles when you spend $2,100; you can purchase (80) Silver Eagles vs. (1) Gold Eagle oz. With the Silver price now back in the low $22 range, it’s a pretty good deal with the Primary Silver Miners’ Cost of Production at $21-$22 per oz. However, investors are holding back on buying gold bullion because the $2,020 price is 20-22% above the Primary Gold Miners’ Cost of Production of $1,650.
Furthermore, Silver Eagle premiums are much lower than they were in 2023. Some dealers were charging 50% premiums on Silver Eagles. I saw some dealers charge $14-$15 premiums on each Silver Eagle. Interestingly, the largest Online Dealer, APMEX, charged some of the highest premiums on Silver Eagles last year and continues today. You will pay $7.50 over the spot (20-99 coins) to purchase a 2024 Silver Eagle from APMEX, while Cloud Hard Assets and Idaho Armored Vaults are charging in the $4 range over the spot. It always pays to shop around.
Royal Canadian Mint Silver Sales Plummet
According to the Royal Canadian Mint Q3 2023 Report, Silver bullion sales plummeted 64% in the third quarter of last year. While this information is a bit dated, it is interesting to see such a large DROPOFF in sales.
Royal Canadian Mint Silver bullion sales fell from 9.6 million oz in Q3 2022 to only 3.4 million oz in Q3 2023. Furthermore, total silver bullion sales fell nearly 6.7 million oz in the first three quarters of 2023. As we can see, most of the decline took place during Q3 2023. I can imagine silver bullion sales will be just as weak in Q4 2023.
Surprisingly, when the Royal Canadian Mint’s silver bullion sales collapsed during Q3 2023, the U.S. Mint was again selling Silver Eagles like hotcakes. The U.S. Mint sold more Silver Eagles in October (3,938,000) than the total Royal Canadian Mint silver bullion sales for the third quarter (3,412,600).
Again, it will be interesting to see the total Royal Canadian Mint silver bullion sales for 2023. I would wager they will be less than the total from the U.S. Mint. Total U.S. Mint Silver Eagle sales for 2023 were 24.7 million, up from 16 million in 2022.
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