great article
A Sterling Account of Silver's January, 2010 Dismal Performance
BY ROB KIRBY | february 8, 2010
From Mark Leibovit’s most recent VR Gold Letter:
In the news, we learned that demand for precious metals weakened substantially in January. The world's largest gold-backed exchange-traded fund, New York's SPDR Gold Trust (GLD), said its holdings fell 21.7 tons or 1.9 percent in January. The largest silver-backed fund, the iShares Silver Trust (SLV), saw a 107.99 ton or 1.1 percent decline in its holdings last month.
The US Mint sold a record $1.7 billion of gold, silver, and platinum bullion in 2009, a 79 percent increase from 2008. The Mint turned a profit of $32.7 million from the bullion sales, an 84 percent increase.
When one takes a moment to read the prospectus of SLV, it states that the fund’s purpose is to provide an investment “similar to an investment in silver” i.e., it is a derivative instrument: - MORE
Tuesday, February 9, 2010
Monday, February 8, 2010
Wednesday, February 3, 2010
Record Demand from US Mint
U.S. Mint silver, gold, platinum coin revenue hits $1.7bn record high in FY 2009
Despite the inability of the U.S. Mint to acquire sufficient blanks, both gold and silver bullion coins smashed sales records due to unprecedented investor demand in FY 2009.
The U.S. Mint sold 27.6 million ounces of gold, silver and platinum bullion coins in fiscal year 2009, a 132.3% increase over annual bullion sales since FY 2005.
Total bullion revenue for the mint achieved a record high of $1.7 billion in FY 2009, a 78.65 increase from $948.8 million in FY 2008.
Because of supply constraints, the mint diverted all available planchet supply to produce of 22-karat gold and silver one-ounce bullion coins. The mint also diverted blanks from discretionary numismatic and bullion programs, increased production capacity, and worked with suppliers to expand planchet supply. "Consequently, the bureau expanded bullion planchet supply from previous levels of eight to ten million ounces annually to over 27 million ounces in FY 2009," the report said.
Bullion sales, general and administrative (SG&A) expenses increased from $8.4 million in FY 2008 to $1.2 million in FY 2009. Meanwhile, bullion net income increased 83.7% to $32.7 million during the same time period. "The bullion program was successfully managed to just below the standard net margin of two percent," the report said.
The sales of American Eagle 22k gold bullion revenue increased 184.3% to nearly $1.28 billion in FY 2009, up from $449.6 million in FY 2008. Revenue from the sale of all American Eagle 22k gold products comprised 75.4% of total bullion sales revenue in FY 2009.
Beginning in calendar year 2009, the mint suspended production of American Eagle 22-k fractional denominations, only to resume their sales in October 2009.
American Buffalo 24k gold bullion sales declined substantially in FY 2009 because the planchet supply was diverted to the American Eagle gold program. American Buffalo gold net income fell from $1.7 million to $100,000 in FY 2009.
The U.D. Mint began acquiring blanks for the American Buffalo program in the fourth quarter of FY 2009, which allowed the bureau to resume 24-k one-ounce coin sales in October 2009.
SILVER BULLION
The Mint reported that 28,766,500 one-ounce silver Eagles were sold last year, smashing the previous record of 9 million coins sold in FY 2008. American Eagle silver bullion sales revenue increased 21.4% from $306.4 million to $372 million in FY 2009. Net income from American Eagle silver increased from $5 million to $6.1 million during the same period.
COIN SALES
Retail sales of numismatic versions of the U.S. Mint's circulating and commemorative coins and medals weakened in FY 2009. The Mint offered fewer numismatic productions because precious metal blanks were diverted to the bullion program.
Quality issues also delayed or prevent the release of certain annual set in FY 2009, such as the 2009 Lincoln Bicentennial One-Cent Coin Program. The tough economy may have lowered consumer spending on collectible coin sets.
Nevertheless, the Ultra High Relief Double Eagle Gold Coin proved to be the highest revenue generating numismatic product, generating $112.4 million in revenue, contributing 25.5% of total coin sales revenue in FY 2009.
The Mint said the product's sales "helped offset declining revenue in other collectible precious metals programs because of product unavailability. Net income from the sale of the 2009 Ultra High Relief Double Eagle God Coin totaled $6.4 million in FY 2009."
The U.S, suspended production of American Eagle numismatic products to divert precious metal planchet supply to bullion coin production. Because of unavailability, revenue from the sale of American Eagle products fell 66.8% from $166 million to $5.1 million in FY 2009.
Like the American Eagle program, the U.S. also temporarily ceased production of American Buffalo gold numismatic products in FY 2009. As a result of product unavailability, revenue from American Buffalo product sales fell 67.4% from $78.8 million to $25.7 million in FY 2009.
The bureau resumed sales of the American Buffalo gold proof one-ounce coin and the American Eagle platinum proof one-ounce coin in October 2009.
Despite the inability of the U.S. Mint to acquire sufficient blanks, both gold and silver bullion coins smashed sales records due to unprecedented investor demand in FY 2009.
The U.S. Mint sold 27.6 million ounces of gold, silver and platinum bullion coins in fiscal year 2009, a 132.3% increase over annual bullion sales since FY 2005.
Total bullion revenue for the mint achieved a record high of $1.7 billion in FY 2009, a 78.65 increase from $948.8 million in FY 2008.
Because of supply constraints, the mint diverted all available planchet supply to produce of 22-karat gold and silver one-ounce bullion coins. The mint also diverted blanks from discretionary numismatic and bullion programs, increased production capacity, and worked with suppliers to expand planchet supply. "Consequently, the bureau expanded bullion planchet supply from previous levels of eight to ten million ounces annually to over 27 million ounces in FY 2009," the report said.
Bullion sales, general and administrative (SG&A) expenses increased from $8.4 million in FY 2008 to $1.2 million in FY 2009. Meanwhile, bullion net income increased 83.7% to $32.7 million during the same time period. "The bullion program was successfully managed to just below the standard net margin of two percent," the report said.
The sales of American Eagle 22k gold bullion revenue increased 184.3% to nearly $1.28 billion in FY 2009, up from $449.6 million in FY 2008. Revenue from the sale of all American Eagle 22k gold products comprised 75.4% of total bullion sales revenue in FY 2009.
Beginning in calendar year 2009, the mint suspended production of American Eagle 22-k fractional denominations, only to resume their sales in October 2009.
American Buffalo 24k gold bullion sales declined substantially in FY 2009 because the planchet supply was diverted to the American Eagle gold program. American Buffalo gold net income fell from $1.7 million to $100,000 in FY 2009.
The U.D. Mint began acquiring blanks for the American Buffalo program in the fourth quarter of FY 2009, which allowed the bureau to resume 24-k one-ounce coin sales in October 2009.
SILVER BULLION
The Mint reported that 28,766,500 one-ounce silver Eagles were sold last year, smashing the previous record of 9 million coins sold in FY 2008. American Eagle silver bullion sales revenue increased 21.4% from $306.4 million to $372 million in FY 2009. Net income from American Eagle silver increased from $5 million to $6.1 million during the same period.
COIN SALES
Retail sales of numismatic versions of the U.S. Mint's circulating and commemorative coins and medals weakened in FY 2009. The Mint offered fewer numismatic productions because precious metal blanks were diverted to the bullion program.
Quality issues also delayed or prevent the release of certain annual set in FY 2009, such as the 2009 Lincoln Bicentennial One-Cent Coin Program. The tough economy may have lowered consumer spending on collectible coin sets.
Nevertheless, the Ultra High Relief Double Eagle Gold Coin proved to be the highest revenue generating numismatic product, generating $112.4 million in revenue, contributing 25.5% of total coin sales revenue in FY 2009.
The Mint said the product's sales "helped offset declining revenue in other collectible precious metals programs because of product unavailability. Net income from the sale of the 2009 Ultra High Relief Double Eagle God Coin totaled $6.4 million in FY 2009."
The U.S, suspended production of American Eagle numismatic products to divert precious metal planchet supply to bullion coin production. Because of unavailability, revenue from the sale of American Eagle products fell 66.8% from $166 million to $5.1 million in FY 2009.
Like the American Eagle program, the U.S. also temporarily ceased production of American Buffalo gold numismatic products in FY 2009. As a result of product unavailability, revenue from American Buffalo product sales fell 67.4% from $78.8 million to $25.7 million in FY 2009.
The bureau resumed sales of the American Buffalo gold proof one-ounce coin and the American Eagle platinum proof one-ounce coin in October 2009.
Tuesday, February 2, 2010
Some nice new coins Silver Eagle 2010 and other great investments
Amazon.com has great deals on 2010 Silver eagles and other collectible coins.
Details on the American Eagle Silver Proof Coins 2010
How many American Eagle Silver coins have been sold in 2010???
2010 American Eagle sales are booming 3.5 million compared to 1.9 million last January.
The coins were created by Public Law: 99-61 (Liberty Coin Act)
United States Mint Facility: Various (Philadelphia, San Francisco, West Point) – (mint facility production is not the same for each year)
Denver, Co (Uncirculated)
Designer of American Eagle Silver Coin
Obverse Designer: Adolph A. Weinman
Description: "Walking Liberty", from Weinman's Walking Liberty Half Dollar, minted from 1916-1947.
Reverse Engraver: John Mercanti
Description: Heraldic Eagle with Shield, symbolizing strength and endurance.
2010 American Eagle sales are booming 3.5 million compared to 1.9 million last January.
The coins were created by Public Law: 99-61 (Liberty Coin Act)
United States Mint Facility: Various (Philadelphia, San Francisco, West Point) – (mint facility production is not the same for each year)
Denver, Co (Uncirculated)
Designer of American Eagle Silver Coin
Obverse Designer: Adolph A. Weinman
Description: "Walking Liberty", from Weinman's Walking Liberty Half Dollar, minted from 1916-1947.
Reverse Engraver: John Mercanti
Description: Heraldic Eagle with Shield, symbolizing strength and endurance.
Silver Information and Resources
(Source of data: U.S. Geological Survey)
The attractive nature of silver is self evident. It’s been used for thousands of years for many, many things. Interestingly, silver has some traits that standout above all other metals. Did you know silver has?
* The whitest color
* The highest optical reflectivity
* The highest thermal conductivity
* The highest electrical conductivity
Generally speaking, the majority of today's mining operations that produce silver are after much more. Silver occurs with other base metals, like gold, copper, zinc and lead. It's these metals that are typically the thrust of many mines. Silver is just another benefit or byproduct of them.
Obviously, as price adjustments happen with silver the focus or priority of mining it can shift. However, that shifting isn't as much as one would think. Because silver has properties that make it extremely useful in electronics and photography, a significant portion of its demand is driven by needs rather than price.
Monex.com Great source for buying silver
Monex Silver Information
This is a great site. For these reasons and many more, the silver market certainly appears to represent an outstanding investing opportunity.
Between July 1, 2003 and November 30, 2006, the price of gold increased 84% in that same time period the price of silver increased more than 200%. In
Silver Eagle Buying Information from US MINT
Silver from APMEX
Affordability. Credibility. Beauty. They're the qualities that have made American Eagle Silver Bullion Coins the world's best-selling silver coins, with more than 130 million sold since 1986.
American Eagle Silver Bullion Coins are affordable investments, beautiful collectibles, thoughtful gifts and memorable incentives or rewards. Above all, as legal tender, they're the only silver bullion coins whose weight and purity are guaranteed by the United States Government. They're also the only silver coins allowed in an IRA.
Silver has historically been the most affordable precious metal. Since 1986, the United States has minted one-dollar silver coins called "Silver Eagles." Each contains a minimum of one troy ounce of 99.9% pure silver.
Affordability. Credibility. Beauty.
The design is based on Adolph A. Weinman's 1916 "Walking Liberty" half dollar, widely considered one of the most beautiful American coins ever minted. Silver Eagles are easy to buy and sell at most coin, precious metal and brokerage companies. Click here for a list of authorized dealers. Prices are based on the market price of silver, plus a small premium to cover minting and distribution costs.
A collectible proof version of the American Eagle Silver Bullion Coin is available directly from the United States Mint. The American Eagle Silver Proof coins are available on the United States Mint's online catalog.
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