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Silver is a transition metal that has been around since ancient times. Because this precious metal surfaced in prehistoric times, we have yet to find out who first discovered silver. Likely, the first found was native silver.
People have found nuggets of native silver in rivers and other areas, though they are rare. Although silver remains rare, large pieces have been discovered throughout the world. Some pieces have been as big as the tops of stoves or cannon balls.
Many people invest in silver to hedge against inflation. With the unstable dollar, people invest in coins because they do not experience reduced values due to changes in the dollar. For over 5,000 years, silver has been directly correlated with the history of money.
Today, even though the dollar is not backed by gold or silver, silver metal continues to be in great demand for many reasons. Learning about the history of silver will help investors better understand why silver objects retain such a high value.
Archeologists have discovered silver objects dating back before 4000 BC that were found in Greece and later in modern Turkey.
When silver was first discovered, it was likely found with lead. Silver and lead are often found together in nature, and the mineral galena, which is primarily lead sulfide, is often mistaken for silver because of its metallic sheen.
Although no one knows the origins of the first silver find, we know mankind has been mining for precious metals throughout history. Silver was refined in Ancient Athens as far back as 4000 BC. Many people are surprised to learn humans have been successful chemists since the middle ages and even before.
Today, silver continues to be mined all over the world. Around 56% of the world's silver supply comes from the Americas, Peru, Chile, and Mexico. Silver mines are also found in China, Russia, and Australia.
Although the history of this precious metal is extensive, we would like to give you a timeline of notable events. Allow this information to educate you on silver metal and how it has shaped the history of the world.
During this time, the first large-scale silver mines were developed. This metal is often found alongside copper-nickel. Silver deposits can be found worldwide, but there was large-scale silver mined in modern Turkey.
Ancient Athens opened the first Larium silver mines during this time. Larium was used to finance the army of ancient Athens.
In 200 BC, Spain became the primary point of silver production. During peak production, around 200 tons of naturally occurring silver were provided to ancient Athens.
In 1545, silver from Spain fueled the ancient Mediterranian economies for hundreds of years. In 1100 BC, native Iberians had been extracting silver for over 3,000 years and had become quite efficient at production.
The first most significant discovery of silver occurred in 1859 with the Comstock Lode in Nevada. Many say this discovery rivaled that of the California Gold Rush. Although the Comstock Rush produced the largest find in America, half the profits resulted from gold.
In 1873, Germany adopted the Gold Standard and dumped all its silver reserves. Between 1873 to 1879, the country dumped around 7.1 million pounds of this metal onto the market. During this time, other countries feared silver prices would fall and cause a significant spike in inflation. Large coins were demonetized, leading most countries to adopt the Gold Standard.
In 1878, the United States was forced to purchase silver because of the Bland-Allison Act. The US government was propelled to purchase between two million and four million dollars monthly. This act expanded the money supply.
In 1855, this metal was discovered in Coeur d'Alene, Idaho. Silver production quadrupled between 1875 to 1900.
In 1890, the Sherman Silver Purchase Act was adopted. This act forced the United States government to purchase 4 1/2 million ounces of silver per month.
Due to financial panic, the Sherman Silver Purchase Act was repealed. This repeal caused gold to be hoarded.
In 1918, the Pittman Act authorized 270 million silver dollars to be melted. Because the British government had released more silver certificates than it had backed, the US became a major supplier of silver for the war effort.
In 1934, Franklin D. Roosevelt confiscated all gold and silver. The US Treasury purchased silver at 50 cents per ounce.
In 1946, the United States became the top silver buyer again. The US Treasury was ordered to sell silver at 91 cents per ounce.
In 1959, there was a global silver shortage. This was the first year where the demand was greater than production.
1961 saw the price of silver rise higher than 91 cents per ounce. During this time, buyers rushed to purchase this metal at below-market prices.
With silver hoarding, prices continued to climb, rising higher than $1.29. Turning in a silver certificate could grant a person an instant profit.
In 1965, the United States government removed coins from circulation. The Coinage Act of 1965 removed silver from quarters and dimes. The purity of the silver dollar was reduced from 90% to 40%.
This year, silver certificates were no longer redeemable. The silver certificates remained legal tender but could no longer be turned in for silver.
In 1979, the global shortage of silver reached its peak. Many blame the shortages on the Texas cartel formed by the Hunt brothers. They were purchasing silver at a shocking rate.
In 1980, the silver reign of the billionaire Hunt brothers came to a screeching halt. They had gained around three-quarters of the world's supply and were blind-sided by changes in commodity exchanges.
Suddenly, silver prices dropped from $50.35 an ounce to only $15.80. The Hunt brothers were forced to liquidate their silver stores at a significant loss.
During this year, silver investors rejoiced with the introduction of the American Silver Eagle Bullion Coin. Finally, congress responded to investors' consistent demands, and this coin became the world's most popular silver bullion coin.
In 2006, the first silver exchange-traded fund was released. This first ETF was released by iShares.
During the global financial crisis, the demand for silver suddenly spiked. In 2008, silver hit a price of $20.92.
In 2011, the debt crisis caused silver to go to an annual high. Prices hit around $48.70. This was the highest leap since the Hunt brothers' takeover.
During this year, the American Silver Eagle broke all-time sales records. Sales hit 47 million ounces at this time.
Those looking to hedge against inflation are flocking to coins. Coins from Central and South America remain popular, along with American versions and those from other countries. Silver deposits are formed from sulfur compounds and have been discovered throughout the world. Mining continues around the world as demand continues to remain stable for this metal.
We have attempted to give you the high points of the history of silver, though you likely have further questions. The following are some of the top questions people ask:
Silver has remained important in world history because it helped advance global civilizations by bringing the East and West together in trade.
Unfortunately, there is no record of who discovered silver. This metal was often found alongside lead zinc.
We do not know when the first silver was discovered, but objects dating back as far as 4000 BC have been found.
Silver salts are used in many electrochemical applications, including the production of fuel cells.
You now know more than you ever have about this metal, including its rich history. Silver is less sought after than gold for investors. However, it remains a viable option if you want to diversify your investment portfolio and can even be used for IRA investments.
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