This news was initially reported by Patriot News Radio, which you can listen to in this video clip. While the information is true and current as displayed on the U.S. mint page here, it is not anything new. The Mint has not sold uncirculated American Eagle silver coins directly on their site for two years, but has continued minting “bullion coins” that are distributed to dealers.

I called the U.S. Mint and they confirmed that they did not produce American Eagle Silver Uncirculated coins in the past two years and thus far in 2011 have no plans to re-start production. They also clarified that they are still producing proof Silver Eagle coins, but they have numismatic value and carry a much higher premium.

While the hype and rumors are misleading, I think the takeaway is still the same – physical buying is overwhelming supply. Strong demand for Silver Eagles pushed sales to an all-time record of 6.4 million ounces during the month of January. This number is 50% higher than any prior month in the U.S. Mint’s 26 years of published sales history. The latest data also shows that February sales set another all-time record for that particular month and the 7th highest monthly sales ever.

4 2013 1 Ounce American Silver Eagle GEM BU Coins 999 Fine Silver Uncirculated US $107.01 (6 Bids) Auction Ends: Wednesday Jun-19-2013 16:15:52 PDT   | Watch this Item

Here’s why. Gold and oil tend to trade in tandem. Many of the same factors that drive up oil prices, i.e. inflation fears, a weak dollar and geopolitical turmoil, also help lift gold.

Gold, even at the absurdly high sounding price of nearly $1,440 an ounce, might even be considered a tad undervalued when compared to oil.

I first wrote about the ratio between gold and oil prices over two years ago. Typically, it’s considered healthy for gold to trade around 15 times higher than the price of oil. So with crude right around $102, gold could be fairly valued at $1,530.

1895-S MORGAN SILVER DOLLAR KEY DATE! **NICE RARE CIRCULATED MORGAN DOLLAR** US $499.95 Auction Ends: Wednesday Jun-19-2013 16:13:31 PDT   | Watch this Item

Precious metal silver has been tracking gold’s rally on an ever-weakening dollar. Despite today’s dollar rebound, the downward pressure on the greenback is expected to continue as long as the Fed keeps up its low-interest rate, paper pumping scheme. Economic data on unemployment, manufacturing, consumer confidence, new home sales, etc due out this week is likely to further influence the dollar’s direction and that of precious metals.

While gold is up 21 per cent this year, silver has soared 56 per cent. However, despite outperforming gold, silver still remains undervalued compared to its yellow cousin. As a recent Bloomberg article points out, when gold first hit $1,000 an ounce, silver was trading above $20 compared to the $17 range today.

Many analysts are forecasting further dollar declines and continued optimism over global economic recovery, which will in turn boost precious metal and base metal prices. Of course, silver stands to benefit immensely from this scenario, given its dual nature as both precious and industrial commodity.

Bank of America Merrill Lynch has said gains in the silver price spurned on by robust investment demand will continue as rebounding economies drive industrial demand. “After the recent sharp price rises, we are cautious on silver in the near-term, but we believe that a spike toward $20 an ounce is possible in 2010.”

For many weeks now, collector questions, concerns and worry increased about the possibility of this very thing happening — especially to the proof Silver Eagle. The thought of forever having a gapping hole in a 23-year old collection is severely disappointing, but now a reality.

“Because of unprecedented demand for American Eagle Gold and Silver Bullion Coins, the United States Mint suspended production of 2009 proof and uncirculated versions of these coins.

All available 22-karat gold and silver bullion blanks are being allocated to the American Eagle Gold and American Eagle Silver Bullion Coin Programs, as mandated by Public Law 99-185 and Public Law 99-61, respectively.

Both laws direct the agency to produce these coins in quantities sufficient to meet public demand. The proof and uncirculated versions of the American Eagle Gold and Silver Proof Coins are not mandated by law.”

Of interesting note, there is still a means to buy an uncirculated 2008-dated American Silver Eagle directly from the US Mint. One is included in the 2008 US Mint Annual Uncirculated Dollar Set for $37.95. They may also be purchased through the Mint’s toll-free number, 1-800-USA-MINT (872-6468).

2008 W AMERICAN SILVER EAGLE UNCIRCULATED DOLLAR - Z8F US $60.00 (0 Bid) Auction Ends: Wednesday Jun-19-2013 16:16:03 PDT   | Watch this Item

Silver is trading at a 52-week high, and options-trading patterns suggest that it will continue to advance. The trading volume is small compared to gold, but as one trader said, the “bang for the buck” could be higher.

1990-S 1 oz Proof Silver American Eagle (w/Box & CoA) US $60.00 (3 Bids) Auction Ends: Wednesday Jun-19-2013 16:14:26 PDT   | Watch this Item

Because it is more expensive, gold is a very compact “store” of wealth. I mean, you could have the entire value of your house, simply stored at the bottom of your sock drawer, or better yet, a small floor safe.

Silver retains its value as a store of wealth too, and is still pretty compact, so you don’t have to have a warehouse to store it in.

Silver has been called the “poor man’s gold” for centuries. This was primarily because it was easier to purchase in smaller quantities, yet still provided a solid, stable currency base. The common phrase “to make change” probably originates from the fact that silver was used to “make change” for gold – in other words, you changed one metal for the same value of another metal.

Silver, in fact, was the standard used for most currencies up until about 150-200 years ago…That’s a really long time when you consider that goes back all the way to Ancient Greece! Silver has been the “store of wealth” for massive empires and was the money of choice for merchants around the world.

Moreover, silver has been somewhat overlooked as a modern investment and store of wealth for quite a long time. People tend to focus on gold or other precious metals. Meanwhile, silver stays steady and true. Sure, the price of silver moves with the markets, along with gold and other precious metals, but because it is less expensive, the smaller movements can amount to strong percentage gains.

Many people don’t know how well silver has done as an investment over the past few years. Since 2001, silver has seen an increase in value of around 400%! Of course, gold has increased as well, but not as much as silver has. Because of this historical trend, many people feel that silver is the best possible precious metal to invest in.

Because silver is less expensive, you as an investor can see faster and more dramatic increases. If heavy investment hitters like Warren Buffet buy silver to hedge against inflation, then why wouldn’t you follow suit. You don’t have to invest millions and you can get the same benefits from buying smaller quantities of silver bullion or silver coins.

Investing in physical silver

Physical silver should form a part of every properly diversified portfolio. It is a universal finite currency.

Silver bullion, like Gold, is a safe haven asset and a great way, if not the best way, of ensuring wealth preservation and for passing wealth from one generation to the next.

Modern bullion coins and bars

Gold, silver, and platinum are all available in the form of bullion coins, minted in the US, in Canada, South Africa, Austria, Australia, China and other countries. Most bullion coins are minted in 1/10oz, 1/4oz, 1/2oz & 1oz form (and some can be bought in 2oz, 10oz & 1 kilo).

Semi-Numismatic and Numismatic Silver Coins

Numismatic or older and rare coins are bought not solely for their precious metal content but also for their rarity and their historical, aesthetic appeal. They are leveraged to the metals price which means that the price of these coins will generally surpass and increase faster than the silver price in a bull market.

1971 S UNCIRCULATED SILVER EISENHOWER IKE DOLLAR---PCGS GRADED MS65 US $22.22 (4 Bids) Auction Ends: Wednesday Jun-19-2013 16:13:27 PDT   | Watch this Item

Yeah, the price of gold rose above $1,000 an ounce Tuesday. And Gold is now up more than 5% in the past month and nearly 15% this year. But silver has done even better as of late.

Silver prices hit a 13-month high of about $16.72 an ounce Tuesday and silver prices are now up about 40% so far this year. Silver doesn’t get as much attention for obvious reasons. “Gold above $1,000″ is a sexier headline than “Silver surges past $16.”

10-Gram NWT Mint Solid 999 Fine Pure Silver Bar~Bullion~EXQUISITE! No Junk/Scrap US $15.95 (0 Bid) Auction Ends: Wednesday Jun-19-2013 16:14:46 PDT   | Watch this Item

Silver has historically been the most affordable precious metal. Since 1986, the United States has minted one-dollar silver coins called “Silver Eagles.” Each contains a minimum of one troy ounce of 99.9% pure silver.

The design is based on Adolph A. Weinman’s 1916 “Walking Liberty” half dollar, widely considered one of the most beautiful American coins ever minted. Silver Eagles are easy to buy and sell at most coin, precious metal and brokerage companies.

Affordability. Credibility. Beauty. They’re the qualities that have made American Eagle Silver Bullion Coins the world’s best-selling silver coins, with more than 130 million sold since 1986.

A collectible proof version of the American Eagle Silver Bullion Coin is available directly from the United States Mint. But if you have missed some years past you can still pick up previous year’s editions in the secondary market.

1 oz. Fine Silver 2005 American Eagle Proof Bullion Coin & Case US $54.59 (3 Bids) Auction Ends: Wednesday Jun-19-2013 16:15:31 PDT   | Watch this Item