Silver (Ag) ISO currency code: XAG
Periodic element 47, Silver has a long history of numismatic usage as a Precious Metal, a multitude of industrial uses, and medical applications.
Numismatic use: The Coinage Act or the Mint Act, passed by the United States Congress on April 2, 1792, established the United States Mint and regulated coinage of the United States. The first (and only) monetary standard was a silver standard that defined the dollar as a specific weight of silver, as well as establishing that the dollar was the money or unit of account. The Coinage Act of 1792 also established that their was to be a bimetallic coinage system of both silver and gold coins. “And be it further enacted, That the proportional value of gold and silver in all coins which shall by law be current as money within the United States, shall be fifteen to one, according to quantity in weight, of pure gold or pure silver; that is to say, every fifteen pounds weight of pure silver shall be of equal value in all payments, with one pound weight of pure gold, and so in proportion as to any greater or less quantities of the respective metals." Silver use in US coinage was discontinued in 1965. Industrial use: 1. Silver is the best conductor of electricity and temperature on earth. 2. Electronic devices: computer servers & monitors, cell phones, batteries, TV screens, washing machines, superconductors, switches and refrigerators. 3. Silver membrane switches, which require only a light touch, are used in buttons on televisions, telephones, microwave ovens, children’s toys and computer keyboards. 4. Silver-based photography is based on light striking sensitive Silver halide crystals suspended on a film. Approximately 5,000 color photographs can be taken using one ounce of Silver. 5. Batteries, rechargeable and disposable, are manufactured with silver alloys. The small button shaped silver oxide cell, used in cameras, toys, hearing aids, watches and calculators is approximately 35 % Silver by weight. 6. Solar cells and mirrors. 7. Energy efficient windows. Polished Silver is almost perfectly reflective. An extremely thin, almost transparent coating of silver on window panes reflects the heat of the sun. 8. Prescription eyeglasses. Silver halide crystals melted into the glass can block at least 97 percent of the sun's ultraviolet rays. 9. Steel ball bearings in jet engines are electroplated with Silver, giving them greater fatigue strength and load carrying capacity.
Medical applications: Silver has excellent antibacterial properties. Silvadine cream (Silver sulfadiazine) is used to treat burn and wound victims. Curad manufactures a line of Silver- imbedded bandages. Colloidal Silver, sold in most health food stores, has excellent antibacterial, antiviral and antifungal properties. Silver now replaces dangerous chemicals such as chlorine and bromine, in water purification systems in hospitals, small community water systems, pools and spas.
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Why invest in Silver? 1. Silver has many industrial uses. Gold does not. Gold is primarily used for jewelry fabrication. Gold and Silver both have numismatic investment use for their Precious Metal value. 2. There is an annual Silver production (supply) vs. consumption (demand) deficit: In 2008, annual global Silver consumption of approximately 830 million ounces was far greater than annual global Silver production of approximately 690 million ounces (data from The Silver Institute). The United States used to have a strategic stockpile of Silver from which it minted it's bullion coin, the US Silver Eagle. That stockpile has long been depleted and the US has to obtain Silver used in it's Eagle program from the Commodity Exchange. 3. The Gold/Silver ratio is very high. In January 1980, when Silver peaked at approximately USD $50. per ounce, Gold was valued at approximately USD $880. per ounce. The Gold/Silver ratio = 17. (The original Gold/Silver ratio established in 1792 = 15.) In November 2009, Silver was valued at approximately USD $17. per ounce and Gold was valued at approximately USD $1100. per ounce. The Gold/Silver ratio = 65.
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Silver is protection against inflation Washington quarters (25 cents face value) were minted from 1932 to 1964. They are 90% fine Silver and contain .18 troy ounces fine Silver. Silver "melt" value at $43./oztr = $7.76* Franklin half dollars (50 cents face value) were minted from 1948 to 1963. They are 90% fine Silver and contain .36 troy ounces fine Silver. Silver "melt" value at $43./oztr = $15.52*
Morgan then Peace Silver dollars (1 dollar face value) were minted from 1878 to 1935. They are 90% fine Silver and contain .77 troy ounces fine Silver. Silver "melt" value at $43./oztr = $33.18*
*See coinflation.com
Silver Certificates were United States paper currency issued between 1878 and 1964. Clearly noted on the Silver Certificate below is the following: "This certifies that there has been deposited in the treasury of the United States of America One Silver Dollar payable to the bearer on demand".
Until 1964, simply saving your change and trading in your Silver Certificates for Silver dollars would have preserved wealth and protected against inflation, the hidden tax.
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1 Dollar Silver Cerificate |
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Silver Art Bars Silver Art Bars are usually 1 ounce, .999 Silver bars, that have a raised or incised artistic design. The first bars were minted in 1968 by the Foster Company. Madison Mint, United States Silver Corporation (USSC), Mother Lode Mint, Mount Everest Mint and others have fabricated many different designs. In 1980, at the time of the Hunt brothers market manipulation, Silver reached $50.+ an ounce and many Silver Art Bars were sold and melted for their "spot" value. No one knows how many bars were melted, therefore bars minted before 1980 are very desirable for collectors. These bars command a significant premium over Silver "spot" price. They are being valued like rare coins; date, mint and mintage affect price.
"An Indexed Guide Book of Silver Art Bars" lists mintages, rarity values and other information about Silver Art Bars.
I have the distict pleasure of knowing, and having an open line of communication with, some of the most knowlegable and experienced experts in the field of Silver bars. These experts span the globe from Hawaii to Alabama.
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