By: Tarek_Saab
In Title 31 of the US Code, the United States Mint is required by law to supply "in quantities sufficient to meet public demand, one dollar silver bullion coins of specified size, weight, and design." (Source) This law is widely referenced, and I have criticized the US Mint in the past when it fails to meet consumer demand because of poor planning, despite the availability of silver.
However, there is an incredible amount of confusion about a second law which allegedly states that the US Mint must supply its silver "blanks" from domestic resources. At present, two of these resources are the Sunshine Mint and Stern-Leach. On June 5th, 2008, during the first massive Silver Eagle shortage, the director of the US Mint published the following statement:
"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."
This interpretation of the law is extremely relevant because Silver American Eagle sales are now on the verge of surpassing total domestic silver mine production.
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