NEW YORK Jan 11 The U.S. Mint said on Monday it
set the first weekly allocation of 2016 for American Eagle
silver coin sales at 4 million ounces, roughly four times the
amount rationed in the last five months of 2015, after a surge
The mint ran out of American Eagle silver coins in July due
to a "significant" increase in demand as spot silver prices
fell to a six-year low.
The bullion coins are bought by authorized dealers who then
sell to the general public at a premium, which changes according
to supply and demand. The coins are viewed as a more affordable
form of investment in physical bullion than the much larger
Inventory was replenished in August and sales resumed. But
the coins were on weekly allocations of roughly 1 million ounces
for the remainder of the year due to low supplies.
The U.S. Mint was not alone in limiting sales. The
unexpected surge in demand put the global silver-coin market in
an unprecedented supply squeeze, forcing other mints around the
world to ration sales, while U.S. buyers had to look abroad for
Spot silver was trading around $14 per ounce on Monday,
hovering above the 6-1/2-year low of $13.60 hit in December.
(Reporting by Marcy Nicholson; Editing by Dan Grebler)