American Silver Eagle coins are considered to be one of the most attractive coins ever minted. Sold by qualified dealers in lots of 100 one ounce coins, the American Silver Eagle represents an excellent way to participate in the silver market. Unfortunately, far too many investors have discovered silver!
According to the newest Comex reports for dealer inventories of metals, licensed dealer supplies of silver coins are being drawn down at dramatic rates. In the last six months, representing the end of 2009 and first few months of 2010, dealer inventories have fallen by 24% as purchases have outpaced supplies. This has contributed to a rise in prices for silver coins.
This rise in prices is a part of the basic rules of supply and demand, fueled as well by the ongoing market uncertainty. Everyone knows that when demand outpaces supply, price will rise. Regular players in the metals market know as well that uncertainty in the broader economy makes metals more popular, driving prices higher.
The fall in silver inventories represents both an opportunity and a challenge for you as an investor. On one hand, it represents a buying opportunity, since silver prices are in a bull market and you have the chance to see your purchases appreciate. On the other hand, it is a challenge, because it may take weeks or even months to fulfill your silver order if coins are not available.
You can compensate slightly for current year shortages by opting to receive previous year mintings of silver coins. This is an annoyance if you are trying to build a collection of key years for American Silver Eagles and want to keep getting the new years added in. However, it does ensure that you won’t be left out in the cold in the event of a true silver shortage.
Finding the best sources for American Eagle silver coins means seeking out dealers who have the sources to still have coins even in a tight market. You should look for dealers who have been established as trusted players in the industry, and who may even offer financing deals to you to help you buy your silver coins. In this way, even as prices creep higher due to shortages in the coin markets, you will be able to insure that your portfolio is full of high quality silver coins.
