U.S. Mint lifts ordering restrictions for authorized purchasers' buying of silver American Eagles

Inventories increase to accommodate removing limitations
By , Coin World
Published : 06/12/14
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The U.S. Mint’s authorized purchasers may now order as many American Eagle 1-ounce silver bullion coins as they want, since the June 2 removal of ordering restrictions.

Silver American Eagle bullion coins had been on allocation to authorized purchasers since Jan. 28, according to U.S. Mint spokesman Michael White.

The allocation restricted the pool of available American Eagle silver bullion coins weekly, with distribution based on previous ordering patterns by the individual authorized purchasers.

“The United States Mint will continue to monitor its Silver Eagle Bullion Coin demand and adjust its bullion coin production accordingly,” according to a memo sent May 30 by the Mint to the authorized purchasers.

Currently, approximately 80 percent of the American Eagle silver bullion coin production is being executed at the West Point Mint. The remaining production is being carried out at the San Francisco Mint, which began augmenting the American Eagle silver bullion coin output in May 2011.

The United States Mint does not sell its bullion coins directly to the public. The Mint sells the coins to a series of approved authorized purchasers, who purchase the coins from the Mint based on the spot price per troy ounce on a given day, according to the London PM fix, plus a $2 premium per coin. The coins are then resold into the secondary market.

Authorized purchasers must place minimum orders of 25,000 coins, according to the U.S. Mint website.

Currently 13 authorized purchasers can purchase American Eagle silver bullion coins. 

According to White, the authorized purchasers may place orders until 3 p.m. Eastern Time Monday through Friday, except holidays.

For example, orders placed on a Monday are priced on Tuesday according to the closing London PM fix, for Thursday pickup. The authorized purchasers must arrange for the shipment and transport of their orders.

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