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 indeed 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 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 Title II of Public Law 99-61 (Liberty Coin Act, approved July 9, 1985) and codified as 31 U.S.C. § 5112(e)-(h). 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.
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 explains, "[s]everal 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. Indeed, the Wall Street Journal reported in September 1976 that "[w]hen 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 came to an agreement to allow the sale of 75% of the stockpiled silver (105.1 million troy ounces) 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 (R-Idaho) proposed an amendment (S.UP.AMDT.738) to the Department of Defense appropriation bill (H.R. 4995) 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 (Public Law 97-114) with the amendment intact, effectively stopping the further sale of stockpiled silver.
Coinage legislation
On May 27, 1982, Senator McClure introduced bill S. 2598, "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 [sic] on the already depressed price of silver." An identical companion bill, H.R. 6649, was introduced on June 22 by Representative Larry E. Craig (R-Idaho) 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 (S. 269) almost identical to S. 2598. As he had in the earlier bill, the senator asked,
"... if we are forced to accept a sale, why use the method guaranteed to depress the price and dispose of the silver with the lowest possible return to the taxpayers? Why not instead, if we must sell, at least get as much for it as we can? Therefore, today, I am introducing legislation which provides that in the event the President proposes and Congress authorizes the sale of silver from the strategic stockpile, this silver would be sold through the minting and distribution of a silver-bearing coin."
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 (S.AMDT.418) to H.R. 47, the "Statue of Liberty-Ellis Island Commemorative Coin Act". McClure's amendment—the "Liberty Coin Act"—added a new section (Title II) to H.R. 47. The amendment may be summarized into the follow points:
* Authorize the Secretary of the Treasury to mint and issue silver bullion coins
* Coin specifications including diameter, weight, fineness, general design, inscriptions, and edge finish
* Coin sales
* Numismatic and legal tender statuses
* Purchase of silver from stockpile
* Effective date of October 1, 1985, and stipulation that no coins may be issued or sold before September 1, 1986
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 Title II of Public Law 99-61 (Liberty Coin Act) codified as 31 U.S.C. § 5112(e)-(h).
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 (D-Nevada) 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 (Pub.L. 107-201, 116 Stat. 736) 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 minted at San Francisco. From 1999 to 2000, they were minted at Philadelphia and West Point. Since 2001, they have been minted only at West Point.
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.
Uncirculated
From 2006 to 2008, the United States Mint issued a collectible uncirculated Silver Eagle coin produced at West Point (bearing the "W" mintmark). The coins were struck on specially burnished blanks and sometimes are referred to as "W Uncirculated" or "Burnished Uncirculated." No burnished uncirculated versions were minted in 2009.
Special issues
* In 1993, the "Philadelphia Set" was issued to commemorate the bicentennial of the striking of the first official United States coins at the Philadelphia Mint in 1793. The set included proof American Gold Eagle coins in 1/2 ozt, 1/4 ozt, and 1/10 ozt sizes, a proof Silver Eagle coin, and a 90% silver proof "U.S. Mint Bicentennial" medal, all with "P" mintmarks.
* In 1995, in addition to the regular proof coin minted at Philadelphia, the United States Mint also issued a proof coin minted at West Point. Known as the "1995-W Proof Silver Eagle," the coin was sold only as part of the "10th Anniversary American Eagle Five Coin Set" which also included the four 1995-W proof American Gold Eagle coins in 1 ozt, 1/2 ozt, 1/4 ozt, and 1/10 ozt sizes; 30,125 sets were sold.
* In 2000, the Mint issued the "United States Millennium Coinage and Currency Set" which included a 2000 Silver Eagle bullion coin minted at West Point (but without a "W" mintmark), a 2000 Denver-minted Sacagawea Dollar with a burnished finish, and an uncirculated 1999 series one-dollar bill with a serial number beginning with the numbers "2000". The sets sold out at the issue limit of 75,000 units. In fewer than twenty known sets, the Sacagawea Dollars do not have a burnished finish.
Cover of the "Legacies of Freedom United States and United Kingdom Silver Bullion Coin Set".
* In January 2004, the Mint issued the "Legacies of Freedom United States and United Kingdom Silver Bullion Coin Set" which consisted of a 2003 bullion Silver Eagle and a 2002 Silver Britannia bullion coin from the United Kingdom. The set had an issue limit of 50,000.
* To celebrate the 20th anniversary of the American Silver Eagle program in 2006, the Mint issued a special "Reverse Proof Silver Eagle" coin minted at Philadelphia. This coin was available as part of a 3-coin set which also included the regular proof coin and the new "Burnished Uncirculated" coin. The reverse proof coin features a frosted background and mirrored raised surfaces (the opposite of a typical proof coin of the series). Uncirculated Silver Eagle coins also were available as part of the "20th Anniversary Gold & Silver Eagle Set" which had an issue limit of 20,000 (19,145 were sold) and included the one-ounce, 2006-W uncirculated American Gold Eagle.
The 2007 "United States Mint Annual Uncirculated Dollar Coin Set" with a Silver Eagle coin surrounded by Presidential and Sacagawea dollars.
* In 2007 and 2008, uncirculated Silver Eagle coins were packaged with each year's issues of Philadelphia-minted Presidential Dollars and Denver-minted Sacagawea Dollars in an "Annual Uncirculated Dollar Coin Set." The 2007 set became available directly from the Mint on December 3, 2007;the 2008 set was available from August 7, 2008 to January 28, 2010.
Varieties
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 ongoing global recession, the demand from investors for precious metals as a hedge against inflation and economic downturn has 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 (from 200,000 to 1,855,000). 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 (31 U.S.C. § 5112(e)) 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 (however, it was available as part of the "2008 Annual Uncirculated Dollar Coin Set" until it sold out on January 28, 2010).
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 (D-Wisconsin). 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 (as opposed to beginning typically in December preceding the year of issue) and the coins are being distributed to authorized dealers under an allocation program. As of April 22, 2010, it is not known if proof and uncirculated versions of the American Silver Eagle coin will be produced again, however Edmund C. Moy, Director of the United States Mint, explains in the Mint's annual report for fiscal year 2009 that the Mint "hope[s] to resume some American Eagle and American Buffalo numismatic product sales in FY 2010." Fiscal year 2010 ends September 30, 2010.
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