2010 Proof Silver Eagle Coins Available Nov. 19

Allaying the fears of many coin collectors, the United States Mint announced today that it would be producing 2010 Proof American Eagle Silver Coins after all. This comes as welcome news to many who anxiously awaited information on whether or not the U.S. Mint would strike the .999 fine silver coins this year.

The collector proof was first issued back in 1986. It was struck annually until the Mint canceled their production in 2009, which they explained why again today:

"The coin was not available in 2009 because of high demand for the United States Mint’s American Eagle Silver Bullion Coin," stated the Mint. "Legislation mandates that American Eagle Silver Bullion Coin production take precedence over the numismatic version of the coin. Economic conditions drove investor demand for the United States Mint’s silver bullion coins to unprecedented highs in both Fiscal Years 2009 and 2010."

Mint officials have been working diligently since then to prevent another cancellation of the annual product. One tact taken has been to endorse a change to the bullion mandate, leaving the Treasury Department the discretion to also produce numismatic Silver Eagles even if the bullion demand is not fully met. To that end, Mint Director Ed Moy testified in a house subcommittee hearing this past summer requesting just that.

Congress has since taken action on the matter with the U.S. House of Representatives passing the Coin Modernization, Oversight, and Continuity Act of 2010, or H.R. 6162, on September 29, 2010. Part of that Act would modify the language in the law to authorize the American Eagles. Instead of requiring bullion coins in "sufficient" quantities to meet public demand, "qualities and quantities" would be inserted into current law, giving the Treasury Department the power of also striking numismatic Silver Eagle coins based on customer demand.

While that legislation is currently in the Senate awaiting action, at least for 2010, the pending Act is mute. Owing to two other factors, the Mint is now able to strike the Proof Eagles. One of those is the fact that the Mint has been working with its suppliers to increase the available number of blank planchets. The other is that while 2010 is on track to be a record year for the bullion American Silver Eagles, mintage during the last two months has declined.

"We have worked very hard with vendors to increase the quantity of precious metal planchets available to us," stated Mint Director Ed Moy in the release. "That hard work has paid off. In fact, we have tripled our supply of silver planchets from Fiscal Year 2007 levels."

"Although the demand for precious metal coins remains high, the increase in supply of planchets-coupled with lower demand for bullion orders in August and September-allowed the United States Mint to come off allocation and shift some capacity to produce numismatic versions of the one ounce American Eagle Silver Proof Coin," the Mint’s press release added.

The Mint will offer 2010 American Silver Eagle Proof Coins at noon ET on November 19, 2010. The price of the silver coins has been set at $45.95, representing a $14 increase from the level of the last proofs sold in 2008.

A percentage of that increase can be traced to the increase in the cost of an ounce of silver. The precious metal averaged only $14.99 for 2008, whereas it has been hovering above $18 an ounce so far this year, and has been above $22 an ounce for the last several days — a 30-year high. (On Friday, October 1, bullion eagle prices increased as well.)

No official mintage cap for the strike has been announced by the Mint, but it has instituted a household order limit of 100 units once they become available. At that time, orders may be placed on the Mint’s website (http://www.usmint.gov) or by calling the toll free number 1-800-USA-MINT (872-6468). Fulfillment of the orders will begin on December 1, 2010.