Investors Losing Confidence in the US Mint, while Coin Minting Reports $171 Million Net Loss

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The US Mint operates with a lean business model that operates in a just-in-time manner, managing incoming blank planchets from designated materials suppliers based on sales demand from Authorized Purchasers as a gauge of investor demand.

Keeping up with investors demand has been a difficult task for the US Mint. The pandemic lockdowns caused a total shut down of mint operations, forced mine closures and caused other widespread disruptions throughout industrial supply chains.

Problems for the Mint only got worse as investor demand for bullion investment coins skyrocketed because of the pandemic. For a few months, the minting of Silver Eagle coins was secretly shifted to the Philadelphia Mint for the first time in history as backorders began to pile up.

The US Mint is required by law to mint Silver Eagle coins in quantities “sufficient to meet public demand.” However, data provided in recent mintage reports shows monthly sales of the coins are down significantly when compared to the same period in 2021.

The latest reports show that for January, monthly sales totals were 3,949,000 coins. Most of these coins were minted during the final months of 2022 when the mint announced it would start minting the coins early. The mint stockpiled the coins, waiting to ship them to bullion dealers until after the start of the year. Did they hedge the price of silver during that time?

Since then, the mint appears to be on track to shipping only 900,000 coins per month, consistently. Far less than the monthly sales volumes reported just a few years ago.

For 2021, the monthly sales figures for February, March and April of that year being: 3,191,500, 4,087,000 and 1,053,000 respectively.

So far, the Mint has provided no explanation for the current production shortages, leaving investors shopping for silver bullion coins looking at options from alternative government mints.

Both the Perth Mint and Royal Mint have announced reaching historical sales records in recent years. Silver bullion coins from both mints have significantly lower wholesale and retail premiums as those mints. Neither appear to be having issues keeping up with demand from investors or industry.

At the retail level, premiums have, at times, exceeded 90% over spot price per ounce. The wholesale premiums that dealers pay to Authorized Purchasers has reached historic highs as well, forcing retail dealers to offer record prices over spot on buy backs. Some long-term silver investors have been able to take advantage of the current price spread compared to retail premiums paid several years ago.

The Mint also pointed to production and supply chain issues in its decision to the postpone the production of the Morgan and Peace $1 silver coins that were highly anticipated by investors and collectors in 2022.

Investors have grown extremely frustrated with premiums on Silver Eagles and lost faith in the US Mint. Most have already started to buy silver coins from foreign governments that are able to provide a dependable and continuous supply of investment grade precious metals.

Rising base metal prices are reportedly to blame for the effecting traditional minting of circulated coinage. The cost to produce pennies and nickels continues to increase with tremendous uncertainty in global metals markets.

With the cost for minting each penny being roughly 2.5 cents, and nickels topping 7.42 cents, total losses on these coins have been steep, with pennies taking a net loss of $92.7 million to produce, and nickels losing a total of $78 million, totaling $171 million in gross loss.

Silver Institute Report Shows Strong Demand Across All Supply Chains

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In 2022, the demand for silver reached an all time high, with more than 1.242 billion ounces, according to a recent survey conducted by the Silver Institute. While registered mining output for the year totals only 835,900,000 1 billion ounces, leaving a deficit of at least 406 million ounces removed from custodial vaults, such as COMEX for the year.

While investor demand for silver bullion continues to rise at a steady pace, total global demand for the shiny metal rose more than 38% as the globally economy begins to recover from the pandemic.

The US Mint continues to struggle during periods of high demand due to ongoing supply chain issues plaguing domestic planchet suppliers.

Premiums on current year American Silver Eagles continue to skyrocket, ranging from as low 57% to as high as 82% over melt value.

Coins from other sovereign government mints continue to sell in large numbers, with 1 oz silver Noah’s Ark coins from Armenia having low premiums alongside silver Philharmonic coins from Austria and King Charles Britannias.

Investor demand continues to drive up prices for physical silver bullion. Supply chain disruptions at the start of the pandemic led to depletions of wholesale and retail bullion inventories resulting in the prices of physical bullion become far removed from following the paper price.

Overall, the bullion market for investors is likely to see further divergence between the price of physical metal and the paper futures price if the supply chain issues persist.

For now, the absolute lowest prices for 1 oz silver rounds can often be found in random year and secondary market listings. Random 10 oz silver bars continue to be the best value and be an investor favorite for those looking to stack with bulk purchases.

Premiums on gold coins and bars offer the lowest premiums for precious metals buyers. Poured gold kilos can be found with premiums below 1%. A few online retailers are offering low premium vintage gold coins such as the Austria 4 Ducat restrikes and 20 francs gold coins being popular amongst fractional gold stackers.

Storing Silver at Home

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Silver bullion typically does not need special treatment when it comes to storing at home. Many people are able to store their silver in a basic hiding place somewhere around their house.

Finding a place in your home to store silver does not need to be complicated. Simple is better, most of the time.

Some common hiding places that people choose may include places where other valuables are stored. Such as the drawer of a nightstand or desk, a bookshelf or a lockbox.

There are many options for storing 1 oz silver rounds at home. One of the easiest option is a plastic storage tube designed to store silver coins and rounds that has the same (or similar) diameters as the coins. These are similar to the plastic coin tubes that are used by the US Mint for silver eagle packaging.

Storage tubes are made from molded plastic that is specifically shaped and sized to fit specific coins and rounds based on their dimensions.

Many of the modern 1 oz silver rounds that are released by private mints are 39 mm in diameter. You can measure the specific silver rounds in your collection to ascertain the specific dimensions.

Many reputable vendors sell their coin supplies and products through various online marketplaces to make it easy for collectors and investors to easily locate the items needed to protect your investment. Finding storage tubes and capsules that are the right size for your silver rounds is as easy as searching on Amazon or eBay.

Plastic coin tubes are also available in rectangular shape that are designed specifically to hold up to twenty 1 oz silver bars. The compact size and shape of these coin tubes make it easy to store up to 20 oz silver in a small amount of space virtually anywhere in your home.

At Home Safe or Lockbox

Over time, many silver investors will look for better, more secure storage for their investment.

Firearms owners may already own a safe to keep firearms secure. It’s a logical and practical choice to store silver alongside of firearms at home.

With most 10 oz silver bars being of a similar size and shape as a deck of playing cards, a couple of them can be neatly stacked alongside boxes of ammo.

Various other options are plentiful for those new to precious metals that may not already have a gun safe at home.

For a secure installation at home, a safe should be mounted to part of the foundation of the house. This is not always possible due to the many variations in construction. Many will, instead, use bolts and mounts to secure the safe to the floor or wall framing.

Some silver stackers may even set up a diversion safe or a honeypot in a spot that would be obvious to thieves looking for a quick score. While keeping the real shiny stashed away in a less obvious location or in a diversion safe of some sort.

Diversion Safes

Diversion safes come in a variety of disguises that look like ordinary household objects. Most often used as a clandestine way of storing herbs and other medicines, these are also a great way for investors to keep their investment secure without having to invest in a large safe.

One of the first things to come to mind for many is the simple soda can safe. They are a basic and simple way to store silver in your refrigerator.

Other options include picture frames, book safes, hanging safes, in-wall safe disguised as an electric outlet. You can find hundreds of simple and effective options for hiding a couple of ounces in plain site.

It is a good idea when storing silver at home to be prepared. It doesn’t take long very long to fill a small safe with shiny metal. So when you are investing in a safe it is a good idea to plan ahead.

After a while, most investors will develop some diversity to their collection that may include a mix of silver bars of different sizes, 1 oz silver rounds and coins.

Ammo cans, either metal or plastic are a good size for storing various size silver bars and coin tubes together. They are strong, durable, air-tight, waterproof, lockable and are easy to keep hidden away.

They’re also portable and easy to grab if you need to pack up in a hurry. However, they’re also easy for a thief to grab unless they are secured.

While ammo cans are a good option in some scenarios, they are still not match for a good safe.

When buying a safe, you should consider your future plans. How much silver do you plan to buy per week? per month? per year? Will you trade silver for gold in the future?

A good home safe can be a significant investment that you don’t want to find yourself repeating every six months to a year.

There are a variety of consumer-grade home safes that can provide adequate protection for most investors that can be suitable for storing up to a few hundred ounces of silver.

Demand for Silver Eagles Spikes, Along with Premiums

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It’s become pretty indisputable that the economy is in the worst state that many Americans can remember since the 2008 financial crisis and the deep recession that followed.

As a result, investors are clamoring for gold and silver bullion like never before. Demand for government issued coins, like the American Silver Eagle and the Canadian Silver Maple Leaf have skyrocketed in recent weeks since the start of the banking crisis.

However, the US Mint continues to be slow and unable to meet demands, which has caused significant increases in recent weeks to a recent high of around 60% over spot price. Some dealers, such as APMEX and JM Bullion are currently showing premiums for silver eagles at over 88% above spot price.

The US Mint outsources the manufacturing of planchets, which are coin blanks that are pressed by the mint to produce the coins. Working only with a handful of select manufacturers that meet the requirements.

Disruptions to both global and domestic supply chains effecting precious metals continue to impact investors and industry.

The raw materials used to mint Silver Eagles must be sourced from domestic silver mines, as prescribed by law.

The Mint has been unable to meet demand since 2021 when more than 28 million coins were sold. While investor demand remained strong in 2022, the Mint was only able to produce around 16 million coins.

So far in 2023, the Mint has reported sales over more than 6 million coins. However, numerous reports state the mint shifted production in late 2022 to start producing coins for the current year, which is the main reason the Mint was able to report 3,949,000 coins sold in January.

Sales reports show only 900,000 coins being sold in each month of February and March which is far below the Mint’s production capacity.

In 2015, the Mint sold 47,000,000 Silver Eagle bullion coins, the highest on record.

Year 1 oz ASE bullion coins
201914,863,500 coins
202030,089,500 coins
202128,275,000 coins
202215,963,500 coins
2023
(4 months)
6,199,000 coins
Recent Years Sales and Mintage Totals of 1 oz Silver American Eagle coins

It’s pretty indisputable that the economy is in the worst condition many Americans have seen since the 2008 financial crisis and the deep recession that followed.

This time around, the economy has been wrecked by a record combination of prevailing events.

It began before COVID was even a thing in September 17, 2019.

Repurchase agreements, often referred to as “repos” are short term loans between banks and financial institutions. That morning, interest rates on overnight repurchase agreements more than doubled. By the end of the trading day the rates had increased by 500%.

The Fed responded to the crisis by injecting $75 billion PER DAY in new liquidity into the repo market for a week to prevent a collapse.

Once the rates began to stabilize, the Fed continued their daily injections of fresh liquidity into the repo market until October 10.

During that three week time period, some estimates put the total amount of liquidity injected by the Fed at over $500 billion.

A few months later, the Biden administration put the entire country into lockdown, effectively shutting down every sector of the economy, aside from companies like Amazon, Walmart and other select corporations deemed “critical”.

Rising inflation began to take hold as the Fed continued to print more money to fund the pandemic with stimulus checks and other government handouts.

To combat the inflation crisis, the Fed responded with multiple steep increases in key interest rates that come faster than has happened decades.

Several Dealers Increase Order Minimums and Shipping Times

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Over the last week, APMEX, JM Bullion, SD Bullion and Money Metals Exchange have announced either increases in minimum order amounts or have added a few days to their shipping policies.

The updates includes:

Gold has been trading steadily above $2,008 per troy ounce and silver closed the week at $25.07.

The demand for Silver Eagles have quickly increased because they are seen a trusted store of value over keeping cash with record inflation. Currently, the cheapest Silver Eagles have a premium of over 50% above spot price.

Other sovereign government coins with a lower premium are also reliable alternative for investors looking for a lower premiums.

Britannia, Philharmonic and Kangaroo have become the go to silver 1 oz coins that make an excellent store of wealth and are easy to stack and store at home.

According to inventory tracking of APMEX stock, it’s been reported that APMEX sales of silver on Thursday April 6 reach over 135,000 troy ounces, slightly higher than the Thursday following the collapse of SVB bank and the start of the current banking crisis.

SD Bullion Updates Shipping Times, Raises Order Minimum to $500

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SD Bullion notified customers today that increases in sales volume in recent weeks has led to delays in order processing and shipping. The company cited a huge demand in precious metals sales that began with the announcement of the Silicon Valley Bank collapse several weeks ago.

Under normal circumstances, the company typically ships orders within 1 to 3 business days of payment clearance.

Current backlog for some orders is reportedly extending out 7 or more business days. In addition, they are temporarily limiting new orders to over $500.

Money Metals Exchange provides a note on their website stating to expect order delays of up to an additional 1 to 2 business days.

In discussions across various online forums, precious metals buyers assert strong sentiment about fear about the true state of the economy and cited an overall lack of confidence in current leadership.

Wholesale and secondary market inventories have been drying up across the industry. One major industry wholesaler shows shipping delays on many common gold bullion products extending into April.

The same wholesaler is reported extended delays of newly minted 1 oz silver rounds extending to mid-to-late April.

Long shipping delays on the wholesale level are often indicative of underlying issues with the supply chains feeding the refineries and private mints. Reports from COMEX have shown a tremendous outflow of silver in recent weeks as more paper contract holders are opting to take physical delivery.

Analysts are predicting the most recent rate hike may likely be the last and are forecasting that lower rates will be coming in a future cycle.

Intaglio Mint Silver Rounds

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The Intaglio Mint creates unique and thoughtful designs that inspire thinking. For 2023, the Mint is releasing a variety of silver rounds that encompassing a wide array of thought provoking artwork that includes modern feline house cats, mythical creatures from folklore and literature as well as patriotic and military themes derived from ancient latin philosophical proverbs.

These silver medals are available from bullion dealers with incredible high-relief compositions that are minted in limited quantities of pure .999 fine silver.

Latin Allure Silver Rounds

The Latin Allure silver medallions incorporate phrases and quotes from ancient philosophers into unique modern works of collectable art. The coin series is popular for its military and patriotic themes around honor, death and life.

For 2023, the series includes both 1 oz and 2 oz silver rounds with intricate high relief designs that are only minted in limited quantities.

Morte Prima di Disonore Silver Round

Memento Mori Silver Round

Fortis Fortuna Adiuvat Silver Round

Amor Fati Silver Round Silver Round

Cryptozoology Silver Rounds

Crytozoology is a pseudoscience that studies, searches for and catalogs unknown, legendary, or extinct animals whose historical existence is disputed or unsubstantiated with modern evidence. It is more closely related to the investigation of cultural folklore as opposed to the science and study of animal species.

For 2023, the Intaglio Mint has created designs of creatures that have been part of the folktales for decades, sometimes even centuries.

  • Unicorn Silver Round – The unicorn is a mystical and powerful horse or goat-like creature that is said to have magical healing powers and the ability to produce drinkable water from poison. The sculptures and artists from the Intaglio Mint capture the spirit of the unicorn that has a storied history across countless cultures.
  • Jersey Devil Silver Round – The Jersey Devil is thought to have lived in the Pine Barrens of Southern New Jersey in the United States. The legend dates back to the 1700s. Sitings of the monster are still regularly reported and it has been blamed for the slaughter of livestock and other horrific events.
  • The Kraken Silver Round – The Kraken is a legendary enormous sea monster that is said to have lived off the coast of Norway around Scandinavia. The creature has a giant squid-like appearance with strong tentacles capable of grabbing onto a ship and pulling sailors to their death on the ocean floor.

Sleeping Cats

The Sleeping Cat silver round collection features the lovable and adorable feline companion enjoying one of their favorite ways to pass time. When asleep, cats will tightly wind themselves into a ball as a way to conserve body heat and keep warm. You can often find them curled up and cuddled together.

Available with three high-relief obverse images of felines posed in various sleeping positions. These rounds are minted from .999 fine silver and are available in limited mintage amounts each weighing either 1 troy oz and 2 troy oz.

The series consists of three silver rounds that are an homage to one of our most loved pets.

The reverse shows curved radial lines emanating from behind the center hallmark logo with inscriptions included for the weight and purity.

Intaglio Mint is a boutique private mint that was established in Sedalia, Colorado in 2010.  They are an innovative manufacturer of coins, tokens and medallions commemorating events, places and historic remembrances. They also mint silver rounds with their own unique and creative designs that feature incredibly detailed and highly collectable themes.

Greek Mythology

The current year of the Greek Mythology coin series from Intaglio includes three fresh designs based on venerable gods and goddesses minted into 1 oz silver rounds.

Scylla Silver Round – In ancient Greece, the Scylla was a female creature with six-heads each with a mouthful of shark-like, razor sharp teeth. She walked on twelve feet and the heads of six baying dogs are said to extend from her loins.

Aphrodite Silver Round – The goddess of love, beauty, desire, and all aspects of sexuality was capable of seducing both gods and men gods and men with her incredible and whisper in the ear.

Bellerophon, Pegasus and the Chimera Silver Round – The Chimera was described by Homer as flying monster with the head of a lion, the body of a goat, and the tail of a serpent or snake that could breath fire. Bellerophon was a hero of the ancient Greeks for capturing and taming the Pegasus and riding it in battle against the Chimera.

2023 Germania Silver Rounds

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2023 1 oz germania silver round obverse

The Germania Silver Coin series is the namesake collector series from the Germania Mint.

The Germania was a book published in 98 AD by Ancient Roman historian Publius Cornelius Tacitus. The work was originally titled On the Origin and Situation of the Germans. The book was described the German people who lived outside the Roman Empire. Tacitus never visited the regions described in his book, but the descriptions and stories are those he heard second hand.

The figure of Germania personified also first appeared in Roman times, as noted on coins discovered from that era. During the Middle Ages, she arose in homages to the Holy Roman Empire.

Germania evolved during the 17th century into a patriotic nationalistic warrior throughout literature, poetry and artwork celebrating Germanic heritage.

The artwork on obverse of these modern coins depicts Germania as a brave woman that is the guardian and protector of the nation.

For 2023, she is shown as a beautiful woman with long, flowing hair with a victory wreath of laurel on her head. Her dress is blowing in the wind. The Amazon holds in her left hand an imperial sword ( named Reichsschwert. She carries a medieval shield with the image of a two-headed eagle, which is also the featured of the reverse.

The weight, purity and year of minting are inscribed around the front.

The reverse features the Germania Mint coat of arms hallmark that features a two-headed eagle in the center.

Specifications:

  • Minted from .9999 fine silver (99.99% pure)
  • Rounds are packaged by the mint in a special lenticular protective plastic capsule that allows you to see the fine artistry with incredible detail.
  • Available in four different bullion weights:
    • 1 oz – 38.61mm diameter, 25,000 piece mintage
    • 2 oz – 50mm diameter, 2,500 piece mintage
    • 10 oz – 70mm diameter, 1000 piece mintage
    • 1 kilogram – 100mm diameter, extremely limited to just 100 pieces
  • Proof Finish rounds are available 1 troy ounce gold and silver.
  • Manufactured by the Germania Mint in Poland.

The 2023 Germania Silver Coin series is limited in minted quantities which leads to these highly collectible coins to sell out quickly.

FindBullionPrices.com tracks the online dealer prices for Germania silver coins to help find the lowest prices.

2023 Noah’s Ark Silver Coin from Armenia

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This 2023 Armenia Noah’s Ark coin series is one that many collectors and investors adore for the biblical theme.

The reverse theme of the coin pays homage to the story of Noah and the Ark as described in the Book of Genesis, chapter 8. A peaceful dove is shown flying above the ark at the end of the rainstorm with the sun beginning to rise over Mt. Ararat in the background.

The image is surrounded by inscriptions around the design field that reads “NOAH’S ARK” in both Armenian and English.

On the flip side, the obverse features the Armenian Coat of Arms. It includes inscriptions for weight, purity, year of minting, and the denomination.

The outer rim is inscribed with the words “REPUBLIC OF ARMENIA”, again translated in both English and Armenian.

Each element in the design is crafted with masterful detail and precision with artisans applying different textures to bring the scene to life.

2023 Noah’s Ark Silver Coin Specifications

  • Minted in 1 kilo, 10 oz, 5 oz, 1 oz plus a wide variety of fractional ounce sizes.
  • Twelfth annual year of minting.
  • Limited annual mintage.
  • Minted with .999 fine Silver BU.
  • The obverse shows the Republic of Armenia Coat of Arms, with assay and minting inscriptions.
  • The reverse design portrays the story of Noah’s Ark from the Old Testament of the Bible.
  • Legal Tender coins backed by the Republic of Armenia.

Mount Ararat is a dormant snow capped volcano in modern day Turkey along the border of Armenia. In the old testament Bible, Mt Ararat is described as the final resting place for the Ark that survived the great flood and holds a significant amount of cultural significance to both nations.

These bullion coins are minted by Geiger Edelmetalle on behalf of the Republic of Armenia. Geiger is one of the world’s oldest private mints.

The mint was founded in the 12th century in Germany and has been involved in the precious metals trade for centuries. The Geiger Edelmetalle mint is a member of the LBMA (London Bullion Market Association) as a Good Delivery provider.

Cheaper Alternatives to Silver Eagles

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Historically, gold and silver have held their buying power through previous recessions and periods of high inflation.

Precious metals are often recommended as a safe-haven that financial advisors recommend during down cycles in the stock market.

Holding precious metals as part of your portfolio acts as a stable hedge against a recession, or worse.

This year is the 37th year that the American Eagle coin series has been produced by the US Mint. These coins have been minted annually since 1986.

Wholesale and dealer premiums on Silver Eagles have risen dramatically in recent years due to ongoing supply chain issues with mint suppliers.

1 oz Silver Coins

Sovereign governments around the world issue coins minted from precious metals. These coins are mainly for investors.

Although these coins are denominated in their local currency, many also qualify for inclusion in a precious metals IRA.

1 oz Krugerrand Silver Coin

The Krugerrand is the original bullion coin created in 1967. It was created by the South African government as a vehicle to encourage investment in government backed gold bullion. The 1 oz Silver Krugerrand coin is minted in .999 fine silver with an evergreen design.

The 2023 1 oz Silver Krugerrand coin has become popular with investors that want a trusted bullion coin without paying high premiums.

The obverse of the Krugerrand carries the image of Paul Kruger. The reverse features an national animal, the springbok antelope.

Krugerrand silver coins have some of the lowest dealer premiums and widely recognized worldwide. The South African mint produces these coins on demand so there is no mintage limit.

1 oz Perth Kangaroo Silver Coin

The Australia Kangaroo series comes from the Perth Mint. The 2023 Kangaroo 1 oz silver coins feature an indigenous red kangaroo bouncing across a grassy outback plain on the reverse.

The obverse of this coin has historically carried an effigy portrait of Queen Elizabeth. It is tradition for the reigning monarch to appear on coins minted by Commonwealth countries. However for 2023, the mint has announced that the Queen will remain on these coins until a suitable image of King Charles is acquired.

1 oz Britannia Silver Coin

The Britannia Series from the Royal Mint has become more popular with each annual mintage after increasing the silver purity in 2013.

This year, 2023 marks the 10th anniversary that the Britannia coin has been available in .999 fine silver.

The first wave of 2023 Britannia silver show the familiar portrait of Queen Elizabeth on the obverse side.

In January, the mint began producing a new 2023 1 oz Silver Britannia coin with a newly sculpted left facing effigy of King Charles III.

The reverse continues to feature the Nathan design of the mythological Britannia.

1 oz Philharmonic Silver Coin

The Austrian Mint began minting the Philharmonic 1 oz silver coin in 2008. It the only bullion coin available that is denominated in the Euro currency.

The inspiration for the design of these coins is attributed to the Vienna Philharmonic orchestra. Both the obverse and reverse designs feature elements related to orchestral music.

1 oz Maple Leaf Silver Coin

The Canadian Maple Leaf 1 oz Silver Coin is minted in .9999 fine silver by the Royal Canadian Mint. The coin is one of the purest government-backed silver bullion coins available in the market.

The Maple Leaf one troy ounce coins have a lower premium than the ASE.

Silver Maples have a familiar design that is easy to recognize. The obverse design includes a portrait of Queen Elizabeth, while the reverse incorporates an image of the Sugar Maple Leaf.

Various improvements have been made to the design throughout the lifetime of the series to help prevent counterfeiting. Coins minted since 2018 include a new rinse process during manufacturing that virtually eliminates issues with milk-spotting that was prevalent with earlier coins.

FindBullionPrices.com aggregates precious metals prices from dozens of precious metals brokers to help bring transparency and reduce the confusion of online dealer pricing.

Shop online dealers for the best prices for these and other 2023 Government Backed Silver Bullion Coins.