In a post a few days ago I mentioned that American Silver Eagle sales were seeing record demand and that January would likely set a new record:
It’s not only the Perth Mint that has seen record demand for retail Silver products. The US Mint reported huge demand in the first two weeks of their 2011 coin sales with 3.4m coins being sold to date in January with 1.7m alone sold in the first day. Given the record of 4.26m coins sold in November 2010, it looks likely a new record will be set.
Since that the US Mint has released updated figures which show January 2011 will officially set a new record with over 4.5m having been sold. If the current rate of sales continues we could see over 6m ounces sold in January alone.
To put that in perspective, United States Silver mine production is around 40m ounces of Silver per year. So 11.5% of US mine production has been used solely on less than 1 month of ASE sales! This months sales are already higher than some entire year sales, such as 1996 which saw 3.46m coins sold and 1997 which saw 3.63m sold.
With the current level of demand for Silver it's hard to see how the price will be kept this low for much longer.
Disclosure: Position held in Silver. Not investment advice. Do your own research.