I think this one is going to rock the market for silver bullion. The decision by the United States Mint to require authorized purchasers of Uncirculated silver American Eagles to purchase two 2002 coins for every three 2003 coins has the potential to make the 2003 one of the lowest issues for the entire silver Eagle series. The 3 for 2 requirement is meant to absorb the 1.5 million 2002 silver Eagles the Mint still had in its vaults as of Nov. 25. Unlike the Proof American Eagles, the Uncirculated coins are not sold by the Mint directly to the general public, but to a network of authorized purchasers, who acquire the coins from the Mint for the spot price of the precious metal on a given day on the metals market plus a small premium. The authorized purchasers may then sell the Uncirculated American Eagles to dealers and/or to the general public. In previous years, the authorized purchasers have been allowed to order the next year's Eagles at a specific time in late December for release after Jan. 1 for the year in which they are dated. In the case of the 2003 Uncirculated silver Eagles, authorized purchasers were informed that they could begin ordering the coins on Dec. 27 using the ratio of three 2003 coins for every two 2002 coins, with a minimum order of 5,000 coins. 2003-dated silver Eagles can't be shipped until after Jan. 1. Mint spokesman Doug Hecox says the Mint expects to have 1.2 million of the 2003-dated coins on Jan. 2 ready for delivery. Rest of story is here http://www.coinworld.com/news/121602/News-5.asp
Yea, I'll say. It looks like each company will hold off buying the 2003 until the 2002 are out of the pipeline. So, the 2003 will be delayed getting to market, so the first consumers to buy will be paying way too much and then be very disappointed when the market for them levels off, and then goes back to normal bullion based pricing.
Not sure I'd agree that SAE prices will be up early in the year. They might go up a few cents over last year but I doubt more than that. I usually preorder a roll every Dec. and manage to get a small discount that way. As for the remaining 2002 coins - the Mint has to either sell them by Dec 31 or melt whatever is left. Either way - the 2003's will go out the door on Jan 2nd.
