Thursday, February 16, 2012

Silver Eagles Sales Slowing in February

After a blistering January which saw the 2nd highest monthly sales total in the history of the US Mint Silver Eagle program at 6,107,000 ounces sold, Silver Eagle sales have slowed significantly in February. 
With over ten business days remaining for the month, Silver Eagle sales as reported by the US Mint are only 835,000 month-to-date, well off the pace of the February 2011 numbers which saw 3,240,000 ounces sold.

Honestly this is to be somewhat expected, as was discussed yesterday, silver currently remains contained in a somewhat subdued range trade between $32 and $34.50.  This is keeping silver investors from backing up the truck to stack the extreme correction lows into the mid $20's we saw at the end of December, and the momentum buyers and price chasers are waiting for silver to get exciting again before re-entering the market.  The cartel appears perfectly happy to allow a low $30's range trade at the present time while the commercials build their short position back up.
From a long term perspective, we continue to believe that the low-mid $30's presents a very good opportunity as well as accumulation point to purchase physical silver.  The current lull in Silver Eagles purchasing has provided some of the lowest premiums in recent memory- as Eagles can currently be found for as little as $2.50 over spot at many major dealers.  We suggest you take advantage of this opportunity and accumulate physical silver professionally into price weakness. 

2012 Silver Sales Totals (in ounces / number of coins)
Month One
( oz. / #coins )
January 6,107,000
February 835,000
Total 6,942,000