American Silver Eagles (ASE) are one of the bench marks, if not the bench mark, for the retail silver market. The most popular silver coin in the world since coming back to market in 1986, with sales of upwards half a billion coins. Only one or two years of the past 33 years are considered to be “key dates” as the mintage of these coins runs in the tens of millions each year. Most all of you already know this as you are as tuned into the market as anyone out there.
Since the second half of 2016 ASE sales have been cut by an average of approximately 65% – not an exact number so, please hold your comments. To say the sales of ASE’s is down would be an understatement. Sales peaked at 49 million coins in 2015 and have bouncing around 15-18 million since. This is important, in my opinion, as it is a direct reflection of people’s appetite for “off shoring” their savings. Traditional saving avenues no longer hold the same appeal, so people begin looking for alternatives, like silver, gold and, now, cryptocurrencies can be added to this mix.
ASE’s are on the move in the 2019 and enjoying a 40% rise in the first 5 months of 2019. With Silver Eagles taking flight we can presume that other silver products are moving at a better pace than in 2018 as well. Why wouldn’t silver, gold and cryptocurrencies all be on the move in 2019 with the geopolitical and economic landscapes shot full of holes. Trade wars, shooting wars, rumors of war, all make people very, very nervous and when high net worth people get nervous they begin moving out of equities and into alternatives. So too, do investors of all worth. Anyone paying attention that understands the markets will be looking for other avenues of wealth protection and alternative ways of creating more wealth.
American Gold Eagles (AGE) have enjoyed a very run in 2019 compared to 2018. AGE’s have been a very popular coin and always sold really well. Once the global economy imploded in 2008 AGE sales, just ASE sales, jumped exponentially with people looking to protect their wealth. Once the Federal Reserve announced “QE” – a polite way of saying money printing (massive inflation) – people once again turned to AGE’s to protect their wealth and purchasing power.
Now we see in 2019 with all the unrest described above people once again turning back to AGE’s. With sales in the first 5 months up more than 8% we believe we will see this trend continue in the second half of 2019, if not grow a little stronger. It seems, but I may be wrong, that people are beginning to understand the stock market is not the economy. With homelessness exploding around the country, retail businesses closing stores everyday and purchasing power eroding before our eyes, are we finally beginning to see the veil lifted and the magician exposed? Gold is the antidote for the magician. If you don’t understand this, please discuss with someone that does – 1-800-822-8080.
The chart below is from USAGold and paints a picture of American Silver and Gold Eagles taking flight. Will they continue to soar or will they glide back to the safety of their nest? Only time will tell.
