U.S. Mint Seeks Help from Philadelphia Mint to Meet the Growing Demand for American Silver Eagle Coins
COVID-19 has transformed the economic landscape for the precious metal industry. With the pandemic looming over the country since the start of the year, states had gone into lockdown.
Businesses had come to a halt, and the coin market has also absorbed much of the economic fallout. As a result, stock values plummeted, and the demand for silver went through the roof. Authorized dealers of 2020 Silver Eagles bought the remaining stock within one week since the demand hiked.
With the lockdown orders across the country, the West Point Mint’s coining capacity had reduced. Safety regulations were enforced to reduce staffing and practice social distancing at the Mint.
A major problem occurred when the Mint closed down from April 15th – 20th. Frequent hiccups in the production of more silver coins delayed the process while the growing demand loomed over the market.
The United States Mint has enlisted Philadelphia Mint to supply silver coins to meet the market demand. The Philadelphia Mint has produced an additional sum of 240,000 2020 Silver Eagle coins between April 8-20 to suffice the demand for precious metal investment. Starting April 21, production has resumed at the West Point Mint.
A pressing question here is: why are investors rushing to collect Silver Eagles? This is answered in the past trends of Silver Eagle sales and prices.
The Popularity of American Silver Eagles
The one-ounce American Silver Eagle is the most widely advertised coin in the country. The price and appeal of the silver metal make the Silver Eagle a popular form of investment in the US. It’s revered for its value, legacy, and rarity.
Early last year, the demand for American Silver Eagles went up by 47.8%. The sale of the Silver Eagles in January 2019 was the highest seen in a single month in two consecutive years. The recorded sales for February 2019 dramatically rose by 129% since February in the preceding year.
The last two years are not the first time in history that American Silver Eagle coins have garnered such enthusiasm in investors. The sales of the $1 American Silver Eagles increased by the Mint from 8,882,754 to 20,583,000 between 2004 and 2008. The price of silver was simultaneously rising during the four years as well. It increased by 124.9% from 2004 to 2008.
The continued strength in investment demand was the primary factor that silver investments became popular and sustained their demand until 2006.
Emergency Issue 2020 American Silver Eagles
The Emergency Issue 2020 (P) American Silver Eagles were released in the coin market after being produced at two separate minting facilities.
The silver coins, packaged and shipped in monster boxes, were directly delivered to authorized dealers who sold them to eager investors. The monster boxes did not have auto-generated number labels, so the tracking numbers were written on them by hand.
The 2020 American Silver Eagles don’t have a distinguishing mark that could tell which Mint they were coined at. The only way to differentiate is the tracking numbers.
The Emergency Issue from the Philadelphia Mint contains the 2020 Silver Eager Series from 400,000 to 400,479. This is by far the only way to identify the specimens from each Mint.
However, the same tracking numbers were repeated on boxes from the West Point Mint as well. This was to avoid duplication of boxes or mistakes in labeling any time after shipment. The boxes were made to look unidentifiable purposefully to prevent any alterations or mishaps.
History of Philadelphia Mint Silver Eagle Coining
NGC identified eligible coins minted at the Philadelphia Mint by the description “Struck at Philadelphia Mint, 2020(P) Eagle S$1, Emergency Production.” 2020(P) Struck at Philadelphia Mint Silver Eagle makes history with the second-rarest issue in the 34-year record of the American Silver Eagle series.The mintage of those 240,000 coins will be listed separately in the NGC Census.
The Philadelphia Mint played a significant role in supplementing the supply of Silver Eagles during the coronavirus emergency. It’s essential to learn some facts about its history. The Mint was established in 1972 after the U.S. Mint was founded on the Coinage Act of 1792.
Since Philadelphia was the capital in that year, the city offered a prime location for the Mint. The first building for the mint facility stayed in use till 1833 and saw many renovations since. The final renovation was completed in 1969, and that’s the building running mintage to date.
The Philadelphia Mint played a major role in coining the proof versions of the American Silver Eagle coins between 1993 and 2000. It also struck the Silver Eagle bullions for a brief period from 1999–2000. This year the Mint issues the first 2020 American Silver Eagle bullion series in 20 years.
Forecast for Future Silver Sales
The global economy is reeling from a hard blow because of the pandemic. This might leads to negative consequences for the financial market. Even though silver metal prices have touched a six-year high in 2020, investors are investing in precious metals as a hedge against economic uncertainties.
However, it’s predicted that precious metals will eventually recover from these critical macroeconomic conditions as they have in the past. Much like silver garnered investor sentiment in 2019, it’s expected to make a major comeback soon.
But the trade war between U.S. and China has urged the state to adopt expansionary methods with the monetary policy.
This has underpinned the effect of the rise in silver prices. With a loosened monetary policy and lower interest rates, the state is stimulating borrowing.
Investors can easily seek loans and invest in precious metals to build their investment portfolio. This will benefit the investors on a personal level and pave the way for economic growth.
With the amount of money flowing into the metal market, silver will likely outperform gold in the future. While the yellow metal has reigned superior throughout history, the gold: silver ratio might drop later this year.
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