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The American Eagle silver coin was first introduced in 1986 and has since been in continuous production. The United States West Point Mint is responsible for the production of the coins.
This 1 oz coin tracks the price of silver. The value of American Eagle coins is primarily determined by their fine silver content which is linked to the prevailing price of silver.
The price of silver American Eagles will rise with inflation. Silver has proven itself throughout history to be a great asset in times of high inflation, appreciating faster and higher than most other investments!
Silver American Eagles are highly popular among investors. With annual demand increasing from 5.4 million in 1986 to a massive 42.7 million coins in 2013, the United States Mint is using up over 5% of the world’s annual silver mine supply for the production of silver American Eagles alone.
Silver American Eagles are liquid and recognised. To date, over 375 million one-ounce pieces have been minted and issued by various US mints, making the American Silver Eagle the most sold silver coin in the 21st century.
Silver American Eagle coins are money. Granted legal tender status in 1985 by the United States Congress, the silver American Eagle is currently the only continuously produced American silver coin since the 1970s to have reclaimed this precious monetary stature.
Silver American Eagles are .999 pure silver. American Eagle silver coins are a great way to get this precious white metal in your hands.
Silver American Eagles are the equivalent of savings. The historical low price of silver compared to gold makes it an ideal investment either for those who wish to invest smaller amounts or for those who believe they are getting more precious metal for their “buck” in anticipation of a steeper appreciation of the price of silver compared with gold.
The obverse depicts the iconic design of “Walking Liberty” which was previous used for the 50-cent silver dollar between 1916 and 1947. The design was made by Adolph A. Weinman, a German/American sculptor, and was considered by many to be one of the most successful designs on a US legal tender coin. Above the main motif is the text “LIBERTY” and to the right “IN GOD WE TRUST”. The year of mintage is visible at the bottom.
The reverse portrays an eagle behind a shield. The motif was designed by John Mercanti, the twelfth chief engraver of the US Mint. The eagle clutches an olive branch in its right talon and a pair of arrows in its left. In its beak the eagle holds a ribbon with the text “E PLURIBUS UNUM” which is Latin for “one out of many”. Above the eagle are thirteen stars which represent the colonies which together declared independence from Great Britain in 1776. Under the eagle is a letter “W”, the mark for the West Point Mint where the coin is produced, and the letter “m”, the initial of John Mercanti. The eagle is surrounded by the text “UNITED STATES OF AMERICA” and “1 OZ. FINE SILVER – ONE DOLLAR”.
The price of silver rises with inflation
Starting in the early 1960s, the US Government began to run large budget deficits, as revenue from taxes was not sufficient to cover spending related to the Vietnam War and the cost of various economic programmes implemented by different presidents. As deficit spending leads to inflation, silver, as an asset sensitive to inflation, responded by rising in price. This made the public hoard circulating US legal tender silver coinage, as the silver content in the coins was now worth more than the nominal face value depicted on them. To halt the price rise of silver, and thus the subsequent hoarding of coins, the US Treasury actively engaged in managing the price of silver by selling large amounts of the metal from its strategic reserves onto the market. This practice was in place for several years, but the high inflation rate and consequently the high demand for silver persisted relentlessly. Fearing it would lose all silver bullion from its vault, the US Government in 1968 eliminated silver from its legal tender coinage, and in the next three years it stopped supplying silver to the market. The price of silver was left to trade freely, which is exactly what it did, and in the following nine years the price of silver increased from an average of $1.55 to $48.7 per ounce, a staggering increase of over 3000%!
The price of silver American Eagles rises tenfold
Where does this leave the silver American Eagle? Well, when the first American Eagle silver coins were minted in 1986, the average price of silver was $5.47 per ounce and would average around the $5 mark until 2003. Unfortunately, but to some extent predictably, the repetitive nature of wars and their related financial cost, together with various spending programmes that were implemented in the midst of the recession in 2008, led to massive budget deficits in many western countries. Similar to what happened in the 1960s, the combination of wars and deficit spending sparked inflation, which made the silver American Eagles between 2000 and 2011 surge in price by almost 1000 %.
The value of American Eagle silver coins will rise with inflation
Although the world economy has somewhat stabilised since 2008, the underlying fundamental issues which caused silver, and consequently silver American Eagles, to rise in price have yet to be resolved or even to be addressed. Budget deficits remain deeply negative in many developed economies, including the United States, government debt levels are likewise increasing, and the global geopolitical situation is highly tense. The fact that the annual sales of silver American Eagles is still rising in the face of the “economic recovery” is another sign that long-term astute investors in increasingly larger numbers are becoming aware of the true fundamental state of the world economy and are drawing the same logical conclusion: it simply makes perfect sense to accumulate American Eagle silver coins.
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