Silver News

New Law Allows U.S. Treasury to Buy Silver - Metal Will be Used for American Silver Eagle Bullion Coins

President Bush signed legislation in August that created a new market for domestic silver in government-minted coins.

The silver — which will be bought by the U.S. Treasury on the open market — will be used to continue minting the popular American Silver Eagle Bullion coins which have been drawing down the nation’s silver stockpile since 1986, consuming a total of 100 million ounces.

The mint is expected to buy up to 9 million ounces of silver annually to continue production.

This is the first time in 40 years that the federal government has been a net buyer of silver. The law was prompted by the near depletion of the stockpile which had been built up during the years following World War II and largely consumed by American Eagle coins since 1986. Last year, coin sales posted their fourth-best sales year in the seventeen-year history of the program. Based on the average annual London Fix price of silver of $4.35 per ounce, sales from the American Eagle Silver coinage program grossed $38,399,625 in 2001. Overall, sales from the American Eagle Silver coin have generated $517,332,230, based on the average annual London Fix silver price for the seventeen years of the program.

Senators Mike Crapo of Idaho and Harry Reid of Nevada, along with Congressman Butch Otter of Idaho, were instrumental in the bill’s passage. Additional Senate cosponsors included Senator John Ensign of Nevada, Senator Larry Craig of Idaho, Senator Robert Bennett of Utah and Senator Wayne Allard of Colorado. Additional House cosponsors include Rep. Mike Simpson of Idaho, and Rep. Jim Gibbons and Rep. Shelly Berkley, both from Nevada.

For information about the American Eagle program, go to the U.S. Mint website at www.usmint.gov.

Silver News - Fourth Quarter 2002