Silver Facts: Silver as a Store of Value

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Silver has been used as a medium of exchange since ancient times (see Genesis 23:16). It was not until the reign of Croesus (560-546 B.C.), king of Lydia (in Asia Minor), that silver was stamped as official coinage.
Throughout history, silver coins were, and still are in many places, essential for internal and international trade. The Spanish reales (also containing 0.8 oz.. silver), minted in Mexico and Peru, were used throughout the Americas for generations. And nearly 400 million of the 1780-dated Austrian Maria Theresa thalers (containing 0.8 oz. silver) have been struck over the past two hundred years to serve as trade coins in Europe and Asia.
In 1792, Alexander Hamilton, then the U.S. Secretary of the Treasury, proposed the adoption of a gold and silver based monetary system. Silver remained in circulating U.S. coins until the supply of silver could not meet the demand for coins and the face value of the coin fell below it's bullion, or meltdown value. The U.S. government eliminated silver from quarters and dimes in 1965 and half dollars were reduced to 40%. In the U.S. today, silver is used only in bullion, commemorative and proof coins. Mexico is the only country currently using silver in it's circulating coinage.
During the past decade, the United States, Canada and Mexico began issuing pure silver coins with nominal face values sold at a small premium over their bullion value (not their face value). In 1982, Mexico began minting a 999-fine (99.9% pure)silver Libertad ranging in weight from 1/20 oz. of a ounce to 5 ounces. Over 20 million of the coins have been sold. The U.S. Mint issues a 999-fine Silver Eagle bullion coin (a one ounce bullion coin with a face value of $1). Over 165 million have been sold since 1986. The Royal Canadian Mint issues a 5 dollar 9999-fine silver bullion coin, the silver Maple Leaf. Over 13 million have been sold since 1986. Australia issues a 5-dollar, 1 ounce 999 fine silver bullion coin, the Kookaburra. Over 8 million have been sold since 1990.
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