-- Posted 29 May, 2008 | | Discuss This Article - Comments:

WASHINGTON, D.C. (May 29, 2008) - Unprecedented investor demand has caused a market shortage for American Eagle Silver Bullion Coins, and the Silver Institute has called on the U.S. Mint to take immediate steps to increase production of this popular physical precious metal investment vehicle.

Today, the Silver Institute has written to the Director of the U.S. Mint expressing its concern over published reports that the coins are essentially being rationed to thirteen authorized dealers, reflecting a major kink in the supply chain, thereby making it difficult in many cases for consumers to purchase them. Silver Institute Executive Director Michael DiRienzo said, "It's clear that the Mint misjudged the strength of the current silver market, and we are encouraging the Mint to take immediate steps to increase its production of these popular investment coins and plan accordingly for the balance of 2008 and for 2009. The trend line is clear, silver investment is on the rise, so the Mint should position itself to take advantage of this market momentum."

Congressionally authorized American Eagle Silver Bullion Coins provide investors with a convenient and cost-effective way to add physical silver to their investment portfolios. Since their launch in 1986, American Eagles have become a leading silver bullion coin investment product and have produced over 165 million one-ounce coins, with 9.8 million sold in 2007, and already over 7.2 million have been sold in just the first 5 months of 2008.

Understanding that demand for the extremely popular coins is strong, the Silver Institute is urging the Director of the U.S. Mint to consider methods for streamlining the silver Eagles' production process.

"We are very concerned about interruptions in this market and have requested a meeting with the Mint Director to seek stability for this important silver coinage program," DiRienzo added.

A copy of the letter from the Silver Institute to the U.S. Mint can be viewed at http://www.silverinstitute.org/news/DirectorMoyMay29.pdf.

The Silver Institute is a nonprofit international industry association headquartered in Washington, D.C. Established in 1971, the Institute serves as the industry's voice in increasing public understanding of the value and many uses of silver.

For Further Information Contact:

Mike DiRienzo
The Silver Institute
1200 G Street, N.W., Suite 800
Washington, D.C. 20005
Tel: (202) 835-0185
Fax: (202) 835-0155
http://www.silverinstitute.org/index.php