Well, it looks as if a bit of life has come back into the silver market as
U.S. Silver Eagle sales jumped in August due to lower prices. While
Silver Eagle sales have fallen over the past few years, if we exclude typical
high January demand, sales so far in August are the highest in a year.
What is even more interesting is that Gold Eagle sales in August haven’t
increased that much compared to Silver Eagles even though the gold price fell
to the lowest level in more than a year-and-a-half. Actually, Gold
Eagle sales this month are more than 50% less than they were last
month. So, for whatever reason, Silver Eagle sales are responding more positively
to the lower silver price than Gold Eagles.
According to the most recently released data, the U.S. Mint sold
1,180,000 Silver Eagles in August, already up 33% versus last month, and we
still have another week to go. Of course, this jump is nothing
compared to the 3-4,000,000 sales per month we saw on average between 2010
and 2016, but it most certainly is a good sign.
As we can see in the chart above, Silver Eagle sales jumped off their lows
in May of 380,000 to nearly 1.2 million in August. If we see another
200,000-300,000 in the last week of the month, that would be a good sign that
“PRICES STILL MATTER” to some in the market.
Now, as Silver Eagle sales jumped in August, buying of Gold Eagles
fell to 15,000 oz and are down by more than half compared to the 35,000 oz
sold in July. My analysis suggests that Gold Eagle sales
increased in July in response to the heated “Trade war rhetoric” between the
U.S. and China. However, now that trade talks between the countries
have resumed, it seems as if demand for Gold Eagles has subsided.
Regardless, while precious metals sentiment and buying is still very low,
Silver Eagle sales are down 70-75% than what they were two years ago, I
believe we will see a huge increase in demand when these highly overleveraged
markets begin to correct violently. Moreover, we may experience
the largest physical gold and silver buying in history as the worlds greatest
bubbles pop.
Please check back for new updates on Gold & Silver Eagle sales.
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