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Reading
this article in its entirety one could conclude that it's 'nothing new'.
However, we read it as a congressionally-enhanced addendum permitting the US
Mint to suspend the bullion production
of Eagles entirely and indefinitely, limiting production to the proof versions only.
We all know that the "market" can provide any commodity for a
price, but could the availability of silver be an exception?
We believe this legislative revision is an anticipatory reaction to the
realization that the shortage of silver is chronic, secular, and perpetual.
Silver, as money, will not be tolerated to be exchanged for goods and
services. And there are still those out there that believe congress has the
mindset to return to a gold standard - hogwash and nonsense! They're lying,
and worse - they know it. It'll be unlawful fiats to the end.
Silver coins (stored off premises) are for savers who hope to eventually be
able to consume. This country will need those savings to re-build our
country's return to the rule of law. Silver bars are for hoarders who will be hindered by assay,
convenience and merchant acceptance upon presentation for exchange.
Coins
NOT bars!
Legislation
Impacting American Silver Eagles
December 1, 2012
The American Silver Eagle was created through the
passage of legislation, which directed the Secretary of the Treasury to mint
and issue silver bullion coins, with a specified weight, silver content, and
design. Throughout the history of the series, there have been other
legislative actions, which impacted the offering.
Initial authorization for the coins was provided under Title II of Public Law
No. 99-61, known as the “Liberty Coin Act”. The resolution had
been passed in the House of Representatives on March 5, 1985 and passed in
the Senate with amendments on June 21. The House concurred with the
amendments on June 24, and President Ronald Reagan signed the bill into law
on July 9, 1985.
The Act specified that the coins would have a diameter of 40.6 mm, weight of
31.103 grams (one troy ounce), and composition of .999 fine silver. The
obverse design was to be symbolic of Liberty, while the reverse would contain
an eagle. Required inscriptions included the words “Liberty”,
“In God We Trust”, “United States of America”,
“1 oz. fine silver”, “E Pluribus Unum”, and
“One Dollar”.
The coins which would later become known as American Silver Eagles were to be
sold to the public based on the market value of bullion plus the cost of
minting, marketing, and distributing the coins. The Secretary of the Treasury
was required to issue the coins in quantities sufficient to meet public
demand. Silver for the coins was to be acquired through purchase from
national defense stockpile of 137.5 million troy ounces.
On November 24, 1986, the first Silver Eagles were released to the public.
The United States Mint distributed the coins through an initial group of 25
authorized purchasers. To become an authorized purchaser, prospective dealers
had to show net worth of $50 million and liquid assets of $10 million. This
small group of dealers was able to purchase the coins directly from the Mint
based on the market price of silver plus a fixed mark up. In turn, they would
resell the coins to the public or other dealers, as well as facilitate a two
way market.
 The program continued successfully for many years.
In 2002, it became apparent that the national defense stockpile of silver
would soon become depleted. A bill known as “Support of the American
Eagle Silver Bullion Program Act” was passed in the House and Senate.
With the signature of President Bush on July 23, 2002, the bill became Public
Law 107-201. It authorized the Secretary of the Treasury to purchase silver
on the open market when the silver stockpile had become depleted. At the
time, the United States Mint estimated that they may purchase as much as 9
million troy ounces of silver per year.
In the later part of the decade, the demand for Silver Eagles proved to be
even greater. This became problematic when the United States Mint was not
able to purchase silver planchets necessary to
strike the bullion coins required to meet full public demand. The United
States Mint was forced to suspend sales on several occasions in 2008 and
2009, and ration available supplies for an extended period of time. The
situation resulted in the cancellation of the 2009 Proof Silver Eagle, since
the collector versions were not legally required to be produced.
 At the request of the United States Mint, a bill
with a legislative fix for problem was introduced known as “Coin
Modernization, Oversight, and Continuity Act of 2010″. The bill was
passed in the House of Representatives and Senate, and then became Public Law
No. 111-302 with President Obama’s signature.
Under the Act, the previous requirements related to issuance of the American
Silver Eagle bullion coins were changed. The new requirements called for the
Secretary of the Treasury to strike the coins in both quantities and qualities that the Secretary
determined to be sufficient to meet public demand. The purpose of the change
was to allow Proof Silver Eagles to be produced even at times when bullion
coins were not being minted in quantities needed to satisfy full public
demand.
After a one year hiatus, the US Mint resumed issuance of the popular
collector proof version. The changes affected through legislation were not
specifically required for the offering of the 2010 Proof Silver Eagle, as
sales commenced prior to the bill being signed into law.
However, the legislative change will provide some assurance and legal backing
for the continued production of future proof and collector issues of the
series.
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