American Silver Eagle


The American Silver Eagle is the official silver bullion coin of the United States.
It was first released by the United States Mint on November 24, 1986. It is struck only in the one-troy ounce size, which has a nominal face value of one dollar and is guaranteed to contain one troy ounce of 99.9% pure silver. It is authorized by and codified as -. Its content, weight, and purity are certified by the United States Mint. In addition to the bullion version, the United States Mint has produced a proof version and an uncirculated version for coin collectors. The Silver Eagle has been produced at three mints: the Philadelphia Mint, the San Francisco Mint, and the West Point Mint. The American Silver Eagle bullion coin may be used to fund Individual Retirement Account investments.

Design

The design on the coin's obverse was taken from the "Walking Liberty" design by Adolph A. Weinman, which originally had been used on the Walking Liberty Half Dollar coin of the United States from 1916 to 1947. As this iconic design had been a public favorite—and one of the most beloved designs of any United States coinage of modern times, silver or otherwise—it was revived for the Silver Eagle decades later. The obverse is inscribed with the year of minting or issuance, the word LIBERTY, and the phrase IN GOD WE TRUST.
The reverse was designed by John Mercanti and portrays a heraldic eagle behind a shield; the eagle grasps an olive branch in its right talon and arrows in its left talon, echoing the Great Seal of the United States; above the eagle are thirteen five-pointed stars representing the Thirteen Colonies. The reverse is inscribed with the phrases UNITED STATES OF AMERICA, 1 OZ. FINE SILVER~ONE DOLLAR, and E PLURIBUS UNUM, as well as the mintmark if applicable.
The reverse of the bullion Silver Eagle will be redesigned in 2021 and will include anti-counterfeiting measures. The new features will be introduced later on the proof and other numismatic Silver Eagles.

Legislative history

Background: Defense National Stockpile silver sales

The impetus of the American Silver Eagle bullion program ultimately comes from executive plans through the 1970s and early 1980s to sell off silver from the Defense National Stockpile. As The Wall Street Journal explained, "Several administrations had sought unsuccessfully to sell silver from the stockpile, arguing that domestic production of silver far exceeds strategic needs. But mining-state interests had opposed any sale, as had promilitary legislators who wanted assurances that the proceeds would be used to buy materials more urgently needed for the stockpile rather than merely to reduce the federal deficit." Throughout the period, such sell-offs that did occur, as well as announcements of planned sell-offs, caused immediate declines in the price of silver. The Wall Street Journal reported in September 1976, "When the US government makes noises about selling silver from the federal stockpile, futures traders start unloading futures contracts in speculation that such a sale would depress prices."
Despite congressional opposition to the sale of stockpiled silver through early June 1981, the House Armed Services Committee decided on June 10 to approve a Reagan administration request to sell government-owned silver beginning in fiscal year 1982 to help balance the federal budget. In July 1981, the House and Senate agreed to allow the sale of 75% of the stockpiled silver over a three-year period, and in September the price of silver fell 11% in response. Just before the first sale in October 1981, a group of politicians from Idaho—a major silver-producing state—attempted to block the auction, claiming that the sale could have a "disastrous effect" on the United States silver mining industry in general and several Idaho silver mining companies in particular. On December 3, 1981, Senator James A. McClure proposed an amendment to the Department of Defense appropriation bill to end the government's sale of silver "until the President, not later than July 1, 1982, redetermines that the silver authorized for disposal is excess to the requirements of the stockpile." The appropriations bill was signed into law with the amendment intact, effectively stopping the further sale of stockpiled silver.

Coin legislation

On May 27, 1982, Senator McClure introduced bill, "A bill to provide for the disposal of silver from the National Defense Stockpile through the issuance of silver coins", to "redirect the sale of silver from our national defense stockpile in an effort to minimize its affect on the already depressed price of silver." An identical companion bill,, was introduced on June 22 by Representative Larry E. Craig but both bills were referred to committees and never were enacted. The Wall Street Journal reported on June 30 that the price of silver "soared after Interior Secretary James Watt announced that sales of the government's silver stockpile will be indefinitely postponed" as the government's legally required study on potential methods of selling the silver had been delayed.
On January 27, 1983, Senator McClure introduced another bill almost identical to S. 2598. As he had in the earlier bill, the senator asked,
The bill was referred to the Committee on Banking, Housing, and Urban Affairs which held hearings on April 15, 1983, however, it was not enacted.
Some two years later, with sales still suspended, Senator McClure again introduced legislation aimed at requiring potential sales of stockpiled silver to be conducted through the issuance of coins minted from the silver. This time his legislation took the form of an amendment to, the "Statue of Liberty-Ellis Island Commemorative Coin Act". McClure's amendment—the "Liberty Coin Act"—added a new section to H.R. 47. The amendment may be summarized into the following points:
Proposed on June 21, 1985, the Senate agreed to McClure's amendment by voice vote on the same day and it was added to H.R. 47; the House approved the amended bill three days later and it was signed into law by President Reagan on July 9, 1985. Thus, the authorizing law for the American Silver Eagle bullion program is codified as -.

Program extension, 2002

The authorizing legislation for the American Silver Eagle bullion program stipulated that the silver used to mint the coins be acquired from the Defense National Stockpile with the intent to deplete the stockpile's silver holdings slowly over several years. By 2002, it became apparent that the stockpile would be depleted and that further legislation would be required for the program to continue. On June 6, 2002, Senator Harry Reid introduced bill S. 2594, "Support of American Eagle Silver Bullion Program Act", "to authorize the Secretary of the Treasury to purchase silver on the open market when the silver stockpile is depleted." The bill was passed by the Senate on June 21 and by the House on June 27 and signed into law by President Bush on July 23, 2002.

Minting history

The first American Silver Eagle coin was struck in San Francisco on October 29, 1986. Secretary of the Treasury James A. Baker III presided over the striking ceremony held at the San Francisco Assay Office. According to a Chicago Sun-Times article, as Baker "reached for the electronic button on press No. 105, he turned to the audience and said, 'I don't need a pick and shovel to start the San Francisco Silver Rush of 1986.'"

Bullion

Bullion Silver Eagle coins do not have mintmarks. From 1986 to 1998, they were produced at the San Francisco Mint. From 1999 to 2000, they were produced at the Philadelphia Mint and West Point Mint.
In March 2011, the San Francisco Mint conducted trial strikes of bullion Silver Eagle coins in preparation for the resumption of full production later in the spring. The added production capacity provided by the San Francisco Mint supplements the output of the West Point Mint.

Proof

From 1986 to 1992, proof Silver Eagle coins were minted at San Francisco and these coins bear the "S" mintmark. From 1993 to 2000, they were minted at Philadelphia and these coins bear the "P" mintmark. From 2001 to 2008, they were minted at West Point and these coins bear the "W" mintmark. No proof versions were minted in 2009. Beginning again in 2010, the proof coins were minted at West Point and bear the "W" mintmark.

Uncirculated

From 2006 to 2008 and beginning again in 2011, the United States Mint issued a collectible uncirculated Silver Eagle coin produced at West Point. The coins are struck on specially burnished blanks and sometimes are referred to as "W Uncirculated" or "Burnished Uncirculated". Aside from the standard-issue burnished Eagles, there has been one burnished Eagle issue produced at San Francisco bearing the "S" mintmark for release in the "American Eagle 25th Anniversary Silver Coin Set" in 2011.

Special issues

1990s

The first significant variety of the Silver Eagle series appeared in 2008 and is known as the "2008-W Silver Eagle Reverse of 2007 Variety". The United States Mint made slight alterations to the reverse design between 2007 and 2008 and some 2008 uncirculated coins inadvertently were struck with the 2007 reverse type die resulting in a die error. The variety is distinguishable by differences in the "U" in UNITED STATES and the dash between SILVER and ONE.

Effect of recession on availability, 2008–2010

As a result of the global recession, the demand from investors for bullion coins as a hedge against inflation and economic downturn surged. This increased demand began to affect the availability of American Silver Eagle bullion coins in February 2008 when sales to authorized dealers were suspended temporarily. In March 2008, sales increased ninefold from the month before. In April 2008, the United States Mint began an allocation program, effectively rationing Silver Eagle bullion coins to authorized dealers on a weekly basis due to "unprecedented demand". At least one observer has questioned the legality of the allocation program, as the Treasurer of the United States is required by law to mint and issue these coins "in quantities sufficient to meet public demand". On June 6, 2008, the Mint announced that all incoming silver planchets were being used to produce only bullion issues of the Silver Eagle and not proof or uncirculated collectible issues. The 2008 Proof Silver Eagle became unavailable for purchase from the United States Mint in August 2008 and the 2008 Uncirculated Silver Eagle sold out in January 2009.
On March 5, 2009, the United States Mint announced that the proof and uncirculated versions of the Silver Eagle coin for that year were temporarily suspended due to continuing high demand for the bullion version. The allocation program that had been put in place in March 2008 was lifted on June 15, 2009, leading to speculation that proof and uncirculated versions might be produced before the end of the year. However, on October 6, 2009, the Mint announced that the collectible versions of the Silver Eagle coin would not be produced for 2009. The disappointment of collectors was expressed in a December 1 article by Representative Gary C. Peters. Peters offered alternative scenarios to the cancellation of 2009 proof and uncirculated Silver Eagles and explained that he would be sending a letter to Mint Director Edmund C. Moy urging him to begin minting these products as soon as possible and continuing to do so until the end of the year. This effort was not successful and the collectible versions were not produced. The sale of 2009 Silver Eagle bullion coins was suspended from November 24 to December 6 and the allocation program was re-instituted on December 7; the product sold out on January 12, 2010.
Production of the 2010 Silver Eagle bullion coins began in January of that year and the coins were distributed to authorized dealers under an allocation program until September 3.
On July 20, 2010, Mint Director Edmund C. Moy provided testimony to the House Subcommittee on Domestic Monetary Policy and Technology on the matter of proof and uncirculated Silver Eagle coins, referencing the possibility of a legislative solution. Moy explained:
On September 22, 2010, Representative Melvin L. Watt introduced the "Coin Modernization, Oversight, and Continuity Act of 2010" to amend and by giving the Secretary of the Treasury authority to mint American Eagle silver and gold coins in "qualities and quantities" sufficient to meet public demand. The bill was signed into law by President Barack Obama on December 14, 2010.
On October 4, 2010, the Mint announced that 2010-dated proof American Silver Eagle coins would be available for purchase beginning on November 19, 2010, at a price of $45.95 per coin and that 2010-dated uncirculated Silver Eagle coins would not be produced.

2013–2015 availability

In January 2013, the Mint suspended sales of American Silver Eagle bullion coins after the first week due to high demand. The Mint resumed the allocation program that had been implemented from 2008 to 2010.
The Silver Eagle coins were sold out in the first week of July 2015. The Mint said its facility in West Point, New York, continued to produce coins and it resumed sales at the end of July 2015. This was the second time the mint's silver coins had sold out in the past nine months. The Mint ran out of 2014-dated American Eagles in November 2014. In 2013, the historic drop in silver increased demand for silver coins, forcing the mint to ration silver coin sales for 18 months.
In recent years, strong international demand for American Silver Eagles has materialized, especially in Asian markets. Markets such as Hong Kong, Singapore and even China are becoming trading hubs with transparent bid and ask spreads.

Impact of COVID-19 on production, 2020

On March 28, 2020, the West Point Mint, believed to be the only producer of bullion American Silver Eagles from 2018 up until early 2020, was shut down for cleaning after an employee tested positive for SARS-CoV-2. The facility reopened on April 1, and bullion coin production was reduced to prevent employee exposure to COVID-19, before once again being shut down on April 15 due to safety concerns.
To make up for the reduced and later suspended production of silver bullion coins, the Philadelphia Mint struck 240,000 American Silver Eagles from April 8 through April 20. Although these coins were physically identical to the West Point coins, coin grading companies began certifying Philadelphia Mint Silver Eagles as "Emergency Issues", triggering a demand for the coins among coin collectors. Production at West Point continued on April 21.

Mintages

YearBullionProofUncirculatedTotal
19865,393,0051,446,778-6,839,783
198711,442,335904,732-12,347,067
19885,004,646557,370-5,562,016
19895,203,327617,694-5,821,021
19905,840,110695,510-6,535,620
19917,191,066511,925-7,702,991
19925,540,068498,654-6,038,722
19936,763,762405,913-7,169,675
19944,227,319372,168-4,599,487
19954,672,051438,511-5,110,562
1995-W-30,125-30,125
19963,603,386500,000-4,103,386
19974,295,004435,368-4,730,372
19984,847,549450,000-5,297,549
19997,408,640549,796-7,958,436
20009,239,132600,000-9,839,132
20019,001,711746,398-9,748,109
200210,539,026647,342-11,186,368
20038,495,008747,831-9,242,839
20048,882,754801,602-9,684,356
20058,891,025816,663-9,707,688
200610,676,5221,092,477466,57312,235,572
2006-P Rev. Pr.-248,875-248,875
20079,028,036821,759621,33310,471,128
200820,583,000700,979533,75721,817,736
200930,459,000--30,459,000
201034,764,500849,861-35,614,361
201140,020,000947,355409,77641,377,131
2011-S--99,88299,882
2011-P Rev. Pr.-99,882-99,882
201233,742,500869,386226,12034,838,006
2012-S-285,184-285,184
2012-S Rev. Pr.-224,981-224,981
201342,675,000934,812222,09143,831,903
2013-W Enh.--281,310281,310
2013-W Rev. Pr.-281,310-281,310
201444,006,000944,757253,16945,203,926
201547,000,000707,518223,87947,931,397
201637,701,50037,701,500
201718,065,50018,065,500
201815,700,00015,700,000
201915,032,000-15,032,000
2019-S Enh. Rev. Pr.-29,803-29,803
2019-W Enh. Rev. Pr.-99,933-99,933
Total505,202,48221,188,3944,029,478530,420,354

Sources:

Bullion

Sales of American Silver Eagle bullion coins began on November 24, 1986, and initial inventories sold out "immediately due to the phenomenal demand".
Silver Eagle bullion coins, along with American Gold Eagle bullion coins, were planned as "viable investment alternatives to the gold and silver bullion coins produced by other countries...." To ensure wide distribution of the coins, the United States Mint awarded a contract to Grey Advertising to assist in marketing and publicizing the coins domestically and internationally. Advertising efforts were expanded in fiscal years 1987 and 1988.
Like the American Gold Eagle and American Platinum Eagle bullion coins, Silver Eagle bullion coins are not sold directly to the public by the United States Mint. In order to provide "effective and efficient distribution, which maximizes the availability of the coins in retail markets as well as major investment markets" the Mint utilizes a network of "authorized purchasers" to distribute the coins. The coins are sold in bulk at a premium over the spot price of silver. The coins are sold to banks, brokerage companies, coin dealers, precious metal firms, and wholesalers that meet the following requirements:
for shipping American Silver Eagle bullion coins. Each "monster box" holds 25 smaller plastic tubes which hold 20 coins each for a total of 500 coins.
Authorized purchasers must order a minimum of 25,000 coins which they sell to secondary retailers that sell them, in turn, to the public. When sales of Silver Eagle bullion coins began in November 1986, the Mint had approved twenty-eight authorized purchasers to market the coins throughout the world.
Bullion coins are shipped in so-called "monster boxes". Each green plastic box holds 500 coins which are packaged in 20-coin plastic tubes. On the lid of each box are two raised Department of the Treasury seals and the phrase "United States Mint" in raised lettering. Before shipping, the boxes are sealed with straps by the Mint and labeled with the year of issue and a serial number.

Proof, uncirculated, and special issues

Proof American Silver Eagle coins dated 1986 through 2008 were sold directly to the public by the United States Mint at a fixed price. The coins were packaged in a protective plastic capsule mounted in a satin-lined, velvet-covered presentation case and accompanied by a certificate of authenticity. Proof Silver Eagle coins first became available through the United States Mint's subscription program in October 2002. Uncirculated coins dated 2006 through 2008 were sold directly to the public by the United States Mint in packaging similar to that of the proof coins; however, the 2006 coin's capsule was housed in a velvet drawstring bag. Special issues and sets are sold directly to the public by the United States Mint.

Value

American Silver Eagle bullion coins carry a face value of US$1. This is their legal value reflecting their issue and monetization as coins. Per, the coins are legal tender for all debts public and private at their face value. This value does not reflect their intrinsic value which is much greater than their $1 legal tender face value. American Silver Eagle Coin prices and premiums are mainly dictated by the fluctuating silver spot price and ongoing supply-demand factors for this most often purchased silver bullion product worldwide.
Mintages, and thus prices, of bullion, proof, and uncirculated Silver Eagle coins have varied widely, and the potential collector is advised to check a standard reference book before buying them. Generally, the bullion versions have been minted in the millions, while the proof and uncirculated versions were issued in the hundreds of thousands each. Most dates of the bullion issue are not particularly expensive and are traded at a premium above the intrinsic value of the silver they contain; most proof versions and uncirculated versions sell for more. Some issues sell for significant sums, for example, the 1995-W proof and the 2006 20th anniversary set containing a special "Reverse Proof" coin along with a regular proof coin and the new "Burnished Uncirculated" coin.