American Silver Eagle Coins

The American Silver Eagle was first released in 1986 as part of the American Eagle Bullion Program. This program was authorized by Congress in 1985 to produce gold and silver bullion coins with their weight, content, and purity guaranteed by the United States Government.

The design of the Silver Eagle is taken from the Walking Liberty Half Dollar. This coin was issued for circulation in the United States from 1916 to 1947. It was designed by Adolph A. Weinman and is considered to be one of the most beautiful US coin designs ever created. The reverse of the coin, featuring a heraldic eagle, was designed by John Mercanti specifically for the silver bullion coin.

Purchasing Silver Eagles

American Silver Eagle bullion coins are not sold directly to the public. Instead, the United States Mint distributes the coins through a network of authorized bullion purchasers. These dealers purchase the coins in bulk quantities and then resell them to other bullion dealers, coin dealers, and the public. They are also required to create a two way market with the public, both buying and selling the coins to ensure liquidity.

Silver Eagles can be purchased through several options. Bulk purchases can be made by buying so-called “Monster Boxes.” These green boxes contain 25 rolls of Silver Eagles containing 20 coins each. Since a large number of coins are purchased, this usually yields the lowest premium per coin. More commonly coins are purchased by individual 20-coin rolls. The rolls have a distinctive green top depicting the seal of the United States Treasury. Silver Eagles can also be purchased individually. The premiums for purchasing coins individually are generally the highest.

Collecting Silver Eagles

From the beginning of the series, Silver Eagles have drawn the attention of not only bullion investors but also coin collectors. The coins are often viewed as the modern equivalent of Silver Dollars, since they are struck in silver and carry a $1 face value. Coin collectors can assemble the complete series by obtaining one coin for each date and adding to the collection with each new release. Some collectors assemble sets of high gradePCGS & NGC Silver Eagles. These coins are encapsulated and graded by third party grading services. The highest graded coins command significant premiums above bullion value.

The United States Mint has also produced different versions of the Silver Eagle specifically for coin collectors. From 1986 to 2008, the US Mint produced and sold to the public Proof Silver Eagles. These coins are struck with specially prepared dies to create sharp features, mirror like backgrounds, and frosted design elements. From 2006 to 2008, the US Mint also produced a collectible uncirculated version of the Silver Eagle, which was struck on specially burnished blanks and carried the “W” mint mark. Other special versions of the coin have been offered to coincide with the 10th and 20th anniversary of the programs.

Growing Demand for American Silver Eagles

In recent years, the demand for American Silver Eagles has expanded considerably. The economic uncertainties experienced during the second half of 2008 led to a dramatic increase in demand for physical precious metals. The United States Mint experienced difficultly meeting the sudden higher level of demand for the bullion coins. That year, they were forced to suspend sales of Silver Eagles on several occasions and eventually resorted to imposing a rationing program, which allocated available supplies amongst authorized purchasers.

The high demand for Silver Eagles has continued with implications for both precious metals investors and collectors. The highly popular collectible proof and uncirculated versions of the Silver Eagle were canceled for 2009, and the status of the offerings remains in doubt for future years. The bullion Silver Eagles reached a new all time high for annual sales in 2008, and then broke that record in the following year. Current demand trends suggest another fresh all time record high will be achieved for 2010.

NB : Directed from http://silvereagleguide.com/