The US Mint Has Run Out Of Silver

$SLV

The United States Mint has temporarily suspended sales of its popular American Eagle Silver bullion coins.

On 7 July, US Mint officials notified their authorized purchasers that a significant increase in demand depleted their inventories. Sales were temporarily suspended in order to replenish inventories.

US Mint officials anticipate that sales may resume in approximately 2 weeks. The US Mint sells their bullion coins exclusively to “authorized purchasers” who act as distributors and who can sell directly to investors/purchasers.

US Mint sales of American Eagle Silver bullion coins jumped 239% from 2,023,500 ounces in May 2015 to 4,840,000 ounces in June 2015. Until sales were suspended, the United States Mint sold 2,609,000 ounces in the 1st 7 days of July. The US Mint sells new coins, only which means the current supply in the market is not enough to satisfy demand.

There were several causes behind the significant increase in safe-haven demand, including Greece, low Silver prices, and the Gold to Silver ratio.

The deteriorating situation in Greece and investor fears of its impact on Europe and the world has contributed to an uptick in silver sales. Silver is sometimes considered the poor man’s gold, and gold is considered a safe haven asset in times of economic uncertainty. Also, the capital controls on Greek banks is a reminder that possession of physical silver provides additional financial security in an economic crisis.

If demand for American Eagle Silver bullion coins continues to outstrip supply, expect the United States Mint to ration its replenished inventory to partially satisfy sales to its authorized purchasers until market equilibrium is reached.

Symbol	Last Trade	Date	Change	Open	High	Low	Volume
NYSEArca:SLV	14.46	8 July 2015	0.03	14.5	14.59	14.41	8,962,300

HeffX-LTN Analysis for SLV:	Overall	Short	Intermediate	Long
HeffX-LTN Analysis for SLV:	Neutral (-0.24)	Neutral (-0.19)	Neutral (-0.15)	Bearish (-0.39)