One of the easiest and popular ways for investors to accumulate a physical position in precious metals is through purchasing American Eagle Bullion Coins. The coins have been available since 1986, however they are now selling at a record pace, as investors continue to stock up on physical silver and other precious metals. Not only are they valuable, but they also offer a nice tax break if you own them.
Bullion coins are priced at market value, along with a dealer markup. However, you can quickly make that dealer markup price back, especially at the rate that silver is rising right now and for the foreseeable future. The Silver Eagles are available in 1-ounce coins, so the price of an ounce of silver plus a dealer markup is what you will pay.
How popular have these coins become? They have always been pretty popular, even during the first year of inception in 1986. First year sales of bullion Silver Eagles in 1986 were 5,096,000. Between 1987 and 2007 sales of the Silver Eagle averaged 7.1 million coins per year. The lowest year on record for sales was in 1996 when sales of the coin were only 3.6 million. Since 1986, sales of the American Silver Eagle exceeded 10 million coins only two times during 2002 and 2006.
Flash forward to 2011. We are in the middle of a huge financial crisis and investors are trying to put their money into something that will hold value. Year to date sales of the Silver American Eagles during 2011 has now reached 25,530,000. Based on average monthly sales during 2011, sales for the entire year could easily reach 42 million coins, up 20% over last year’s already staggering number of 34,662,500.
Needless to say, you can see the trend that continues to grow with these coins. If you are looking for some investment that will hold its value and even grow your portfolio, then Silver Eagle Coins may be a good place to start.