Strong Demand Sees US Mint Limit Silver Bullion Coin Sales
THE US MINT is to put a limit on the number of 'America the Beautiful' silver bullion coins dealers can buy when they go on sale next Thursday, a reflection of the strong demand for physical bullion seen since April's price drop, newswire Reuters reports.
The mint says it will allocate half its inventory equally to authorized dealers, with the remainder being distributed based on each dealer's sales of the 'America the Beautiful' coins over the last two years.
Unlike the US Mint's American Eagle coins, which are produced specifically for gold and silver investment purposes, the 'America the Beautiful' coins are commemorative, and are produced in honor of America's national parks.
The five ounce silver coin that goes on sale next week features White Mountain National Forest and is priced at $179.95 – nearly $36 per ounce, around 50% higher than the current spot market silver price.
Last month, spot silver fell around 20% over two trading days between Friday April 12 and Monday April 15, with gold falling around 15%. The price crash was followed by increased demand worldwide for physical bullion, with shortages of gold and silver where it was most in demand leading to higher premiums over the spot price.
The US Mint suspended sales of its smallest gold American Eagle coin, weighing one tenth of an ounce.