Our friends over at GATA have this story on The U.S. Mint rations silver eagles.
I believe this demand for the Silver Eagles could be just beginning. In making my rounds of my day job, I NEVER hear anyone talking about precious metals. As the article mentions, some feel a craze like this could end badly, and they have justification in their concern. But until you hear everyone talking about it, I just don’t think that a meltdown (pardon the pun) is going to happen.
In one regard, the problem stems from a lack of education on the part of many buyers. The article above even hints at a partial answer to the problem: our friends up north are more than happy to sell us Canadian Maple Leaf silver coins, why not buy them if the U.S. Mint can’t keep up?
Another point I would like to make with regard to a person mentioned in the article, the 57 year old accountant is buying silver eagles and reportedly putting them in a bank safe deposit box. Perhaps she said this only in hopes of avoiding a burglary since her name was mentioned and city.
This is a bad idea. There are other secure ways of storing coins; sharing them with the U.S. Government (who can monitor, if they choose, what is taken out of a safe deposit box) is not a good idea. In fact, Gold (and silver) handling is mentioned in past edition of Casey’s Big Gold available in the archives to all subscribers.
How long will you hold these Silver Eagles and Silver Maple Leafs? My guess is quite a long time. Until you see some semblance of fiscal responsibility returning to the U.S. Congress, the fate of the U.S. Dollar is in serious jeopardy.
