Mint to use silver for minting local production of American Silver Eagle.
On the Internet a lot of debate as to whether the U.S. Mint to use silver for minting local production of American Silver Eagle. I discussed this issue with Michael White (Michael White) from the Office of Public Affairs U.S. Mint. Mr. White gave me a link to the Senate bill S. 2954, enacted into law in 2002, which allows the U.S. Mint to buy silver on the open market for the production of American Silver Eagles. Wikipedia also cites the following excerpt:
Expansion of the program, 2002
Authorizing legislation for the sales program Coin American Silver Eagle provided that the silver used for coinage, must be purchased from the State of strategic stocks with the intention to slow depletion of reserves of silver in a few years. By 2002, it became apparent that the stock is exhausted, and that the continuation of the program is necessary to adopt additional laws. June 6, 2002 Sen. Harry Reid (Harry Reid), (Democrat, Nevada) introduced the bill S. 2594, “Law of the maintenance program for the sale of coins American Silver Eagle,” “in order to allow the U.S. Treasury to buy silver on the open market when the supply runs out of silver.” The bill was passed by the Senate on June 21, and the House of Representatives – June 27, and approved (Public Law 107-201, 116 position 736) President Bush on June 23, 2002.
If for minting these coins really needed the local silver, then in 2011 the U.S. Mint produced only have about 35 million ounces of Silver Eagles – to an estimated 40 million. This is also true for the Royal Canadian Mint, as it currently publishes more Silver maple leaves than it can produce from its own domestic production of silver.
Despite the fact that the U.S. and Canada produce more Silver Eagles and maple leaves than they can provide their domestic production volumes, none of the countries did not consider it a problem, because each of them has a sufficient amount of silver imported to meet all their industrial and investment needs. However, in the future this situation may change because the world economy is slowing and each of the countries no longer trust their respective fiat currencies.
Some analysts have argued that the excess of silver in the future will keep growth rates. Here, we understand that this does not happen. On the contrary, thanks to increased investment demand and the price of silver, and the so-called excess supply.
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