Facts ‘n’ figures: US Mint sells record number of Silver Eagle coins in 2014

The following is an edited report from The Silver Institute, a Washington D.C.-based non-profit industry association. For more information visit www.silverinstitute.org.

The continuing appeal of silver for investors led to record sales of American Eagle 1 oz. silver bullion (Silver Eagle) coins last year, topping the milestone established the previous year.

The U.S. Mint announced that 2014 sales of Silver Eagle coins reached 44,006,000 oz. The robust sales performance was driven by a resurgence of demand in the fourth quarter of 2014.  December sales of the Silver Eagle coins were up 104% year-on-year.

Sales of the Silver Eagles dramatically outpaced those of the 1 oz. American Eagle gold and platinum coins last year. Moreover, based on 2014 U.S. Mint sales figures and annual average metal prices, Silver Eagles eclipsed the gold coin’s sales by 59%.

Introduced in 1986, the 99.9% pure Silver Eagle coins have experienced strong demand in recent years, with sales climbing sharply since 2008 and occasionally reaching levels where demand exceeded supply. As a result, the U.S. Mint was forced to stop selling the Silver Eagles on several occasions last year as demand swelled, instituting a policy to allocate available coins to its authorized purchaser distribution network.

Meanwhile, the Royal Canadian Mint (RCM) reported healthy demand for its silver bullion products last year, ending on a high note after selling all 1 million of the its Bald Eagle coins from its Canadian Birds of Prey silver bullion coin series. The RCM said its flagship 1 oz. Silver Maple coin continues to generate solid customer interest.

Australia’s Perth Mint reported that while total silver sales were down 13.5% year-on-year, largely due to a sales tax increase in Europe, there was an increase in buying as the price came off through the second half of the year producing 20.8% higher sales over the first half.

Investors’ support for silver was not just limited to bullion coins. Investment in silver-backed Exchange Traded Funds (ETFs) grew by 1.1 million oz. by the end of December last year. Although a modest gain of 0.2%, when compared with the 8.8% decline in gold ETFs last year, it is clear that silver ETFs remain a popular investment vehicle. Early indications for physical bar demand are down in 2014 for both silver and gold, however.

While American investors show support for silver, demand for the metal also increased through the year in India, where silver imports climbed 13% to an estimated 212 million oz. in 2014, setting a level of imports that surpasses the previous record volume of silver imports posted in 2013, according to analysts at GFMS Thomson Reuters. Silver has benefitted from increased Indian demand due to uncertainty surrounding government import policies impacting the gold market.