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U.S. Mint Announces Silver Shortage

2021-10-01 16:53:00
Posted in: News, News

U.S. Mint Announces Silver Shortage

Rarely do we see a silver shortage with implications as far reaching as what we are experiencing right now. Between the global pandemic hindering the output of entire industries and the demand for silver reaching new heights with the rise of technologies like solar power, it is becoming more and more difficult to acquire silver. This immense scarcity has even crept into our beloved hobby, making it increasingly more difficult to obtain classic numismatic silver as of late.

This lack of silver has severely throttled the production and availability of many coins, causing the United States Mint to put out numerous statements regarding the immense challenge that acquiring silver poses- even going so far as to reschedule upcoming releases such as the 2021 Morgan and Peace Dollars. Simply put, suppliers of planchets are struggling to keep pace due to their numerous contracts with private businesses and mints around the world. The bottom line is that there is a tremendous demand for silver in many industries, and it is making it more difficult for numismatists to acquire coins and for the Mint to produce them.  

To give a little more insight into the crossroad between numismatics and silver, Rare Collectibles TV’s hosts Rick Tomaska and Jack McNamara answered a few of your burning questions regarding the current market.

When asked about the last time a silver shortage has had an impact on numismatics like this, Rick replied, “The last time anything like this happened was in 2009, when demand for silver was so high that the US Mint couldn’t allocate any resources to striking the Proof American Silver Eagle.”

As we are seeing now with the coronavirus pandemic, the Great Recession from 2007 to 2009 caused an immense increase in demand for silver from the US Mint. At the time, however, Proof coinage was only authorized if there was an excess of silver available after the demand for circulating silver was met. As the supply of silver was increased, the demand for it continued to move upward. In the end, there was no excess silver, meaning the 2009 Proof American Silver Eagle was, by law, unable to be struck. To this day, American Silver Eagle collectors still feel the impact of this shortage, as there will always be a gap in their collection.

“Other than 2009,” Rick continued, “The only other time I can think of is when Congress signed the Coinage Act of 1965. There was a huge shortage of coinage in the country, and they suspected it was because people were hoarding silver. This was at a time when dimes, quarters, and half dollars were struck from 90% silver. It made sense that this was happening because the intrinsic value of the metal surpassed the face value of the coin, so people could profit by holding the silver instead of spending the coin. This law changed the composition of the quarter and dime to be clad, and the composition of the half dollar to be 40% silver.”

While the US Mint experiencing difficulty in acquiring silver explains why modern coins are difficult to find, many people are wondering why classic numismatic silver like the Morgan Dollar is becoming difficult to obtain as well. We turned to our Senior Coin Buyer, Jack McNamara for an answer.

“Collectors just aren’t interested in selling their silver right now. Whether the coins graded or ungraded, people are buying, and they are holding. Right now, there are less coins on the market than ever and there are even more dealers trying to buy them.” Jack explained “This was more obvious to me than ever when I recently visited the Florida United Numismatists Show. I had never seen so many collectors in one place. The supply of coins was probably half what I’m used to seeing at the show, but there were so many young collectors interested. Despite the shortage of silver, our hobby is continuing to grow, and that is ultimately what I want to see.”

When asked about Rare Collectibles TV’s ability to acquire silver coins, Jack reassured clients, “Although demand for silver is higher than I’ve ever seen and supply is as low as ever, RCTV has stayed ahead of the curve. Whether you’re looking to acquire complete American Silver Eagle sets, comprehensive Morgan Silver Dollar collections, or new releases like the 2021 Type 2 American Silver Eagle and the 2021 Morgan and Peace Dollars, Rare Collectibles TV will certainly be able to offer you the coins that you desire.”