Gold & Silver Eagle Sales Split in May

Sales of gold and silver bullion coins at the U.S. Mint made an interesting bit of history last month, as demand for gold coins rose yet demand for silver coins fell. While not unheard of, it is extremely uncommon for the two metals to move in opposite directions, and the phenomenon almost did not happen.

U.S. Mint officials have said that demand for silver bullion coins, like American Eagles, fell sharply during the last two months of May as the silver spot price fluctuated violently. Currently the gold spot price is $1,321.10 and the silver spot price is $21 even, and both metals are in the green for the day, the last 30 days and the last 365 days.

Silver Eagles sales are 15,3% higher than the same time in 2013, and the Mint reported that May 2014 was the 10th best month for silver Eagle sales in the last 29 years. “Investors are catching on to the fact that inflation is likely just around the corner,” said analyst Brent Earnest. “The historic silver to gold ratio of 16 to 1 is now closer to 60 to 1. The masses are starting to see the potential for growth in silver.”

One positive did come from the recent decline in U.S. Mint sales, according to Earnest. “The U.S. Mint has announced that it is ending its allocation program, meaning authorized distributors and individual investors can now buy as many silver Eagle ‘monster’ boxes as their hearts desire.”

Silver Eagle sales in the last 365 days surpass the total annual sales of silver Eagles for each year since 1986, with only five exceptions. By contrast, gold Eagle sales seem to be on the decline, with May seeing a 7.8% decline from April and a 49.3% decline from May 2013. “The tide could be turning in silver’s favor, but we’ll have to wait and see if this trend holds,” said Earnest. Earnest and invite you to snag your complimentary copy of the 2014 Insider’s Guide to the Gold & Silver Markets, available in electronic and hard copy versions via the form below.

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