US Mint Issues False Statement on Silver Bullion Sourcing, This thing is heating up

June 6, 2008

Another open letter to:

“By law, the United States Mint’s American Eagle silver bullion coins must meet exacting specifications and must be composed of newly mined silver acquired from domestic sources. The United States Mint will continue to make every effort to increase its acquisition of silver bullion blanks that meet these specifications and requirements to address continuing high demand in the silver bullion coin market.”
http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=4613

I believe this to be a false statement. US Law: 31USC5112 clearly states: http://frwebgate.access.gpo.gov/cgibin/getdoc.cgi?dbname=browse_usc&docid=Cite:+31USC5112

(C) Sources of bullion.–The Secretary shall obtain silver for minting coins under subparagraph (B) from available resources, including stockpiles established under the Strategic and Critical Materials Stock Piling Act.

The US Mint is erroneously referring to the section about sourcing gold which specifies that gold bullion, and only gold bullion, is newly mined and sourced from mines in the United States:

Support of American Eagle Bullion Program Act
S. 2594
http://www.govtrack.us/congress/billtext.xpd?bill=s107-2594 “An Act - To authorize the Secretary of the Treasury to purchase silver on the open market when the silver stockpile is depleted, to be used to mint coins.”

Silver Eagle Coin Continuation Act of 2002
H.R. 4846
http://www.govtrack.us/congress/billtext.xpd?bill=h107-4846

SEC. 2. DELETION OF LIMITATION ON ACQUISITION OF SILVER FOR $1 COIN FROM ABOLISHED STOCK PILE.

(4) with the depletion of silver reserves in the Defense Logistic Agency’s Strategic and Critical Materials Stockpile, it is necessary for the Department of the Treasury to acquire silver from other sources in order to preserve the American Eagle Silver Bullion Program;

(5) with the ability to obtain silver from other sources, the United States Mint can continue the highly successful American Eagle Silver Bullion Program, exercising sound business judgment and market acquisition practices in its approach to the silver market, resulting in continuing profitability of the program;

(b) IN GENERAL- Section 5116(b)(2) of title 31, United States Code, is amended–

(1) in the 1st sentence, by striking `, except silver transferred’ and all that follows through the period at the end of such sentence and inserting `or may obtain silver from other sources as appropriate.’; and

(2) by striking the 2nd sentence.

Please note the title of Section 2 of this important law “DELETION OF LIMITATION ON ACQUISITION OF SILVER FOR $1 COIN FROM ABOLISHED STOCK PILE”. I believe that the US Congress clearly does not want ANY LIMITATION on the acquisition of silver to make the US Silver Eagles.

Cc: Michael Mukasey, US Attorney General
A. Roy Lavic, Inspector General CFTC
Senator Dianne Feinstein
Congressman Ron Paul

Original Article

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