“AG” stands for silver, and comes from the Latin “Argentium.” Silver has been in use as money and other uses, since ancient times, and is used in the book of Genesis many times to decorate, and even used as money. Silver is soft and malleable, and as a result of this characteristic, “Sterling” was developed, which contains 92.5% silver and the rest in copper, making it perfect for vases, and flatware. In 1962, I bought a Sterling silver service for eight, at a famous Philadelphia jewelry store, which was perhaps one of the most beautiful shops in America: J.E. Caldwell. Our silver forks, spoons, and knives have been in continuous use for over 60 years now, and they’re still beautiful. As I remember, I paid under $100 for the set, and I can only imagine what they would cost now, which was a good investment of $100 in 1962.
Silver has the highest electrical conductivity of all metals. Even higher than copper, but its higher cost and weakness has prevented it from being used in place of copper, especially in wire. Silver has the highest thermal conductivity, whitest color, and highest optical reflectivity of any metal. Silver was used for photographic use for 175 years, but is rarely used for it now. In 1939, the spot price of silver was set by the U.S. Treasury at 71 cents per troy ounce, again in 1946 at 90.5 cents per ounce, which was supposedly the melt down price of U.S. silver coins. If you ever watch “Antiques Roadshow,” you will occasionally see silver bowls or vases made with “silver coinage,” usually meaning 90% silver, which is softer than Sterling.
Remember ‘silver certificates?’ These were $1, $5, and $10 U.S. paper dollars which were indeed backed by siler in treasury vaults. Those were discontinued, and finally, in 1961, only the $1 silver certificate was left. I sent in a silver certificate dollar bill to the treasury, and received a little envelope of silver grains, which I sill have. As usual, all governments do the best they can to keep their currencies valuable, being backed by something valuable, since a paper promise of all kinds, can be worthless, especially if issued by a government. The U.S. had millions of ounces of silver, and it began selling its hoard beginning in 1960, when it sold 22 million ounces of silver bullion, and kept 56 million ounces for coinage. Smart people began hoarding silver coins, which made the U.S. mints short, causing the spot price to go up to $1.29 in 1963. By then, the silver in coins was worth more than the coins’ face value, so beginning in 1964, mintage in silver coins ceased, and silver coins quickly disappeared into private hands, where they remain till this day. Collecting and holding silver coinage, was an easy way to protect against inflation from 1964 on, till all disappeared into private hands. It was easy to save a few dollars a week by saving silver coins, till they were all taken. A few ‘clads,’ were produced, which contain 40% silver, but they didn’t last long, and even the copper penny left in 1982, because it had three cents worth of copper in it. I began saving buffalo nickels years ago, and have a lot. They’re not seen too often now, but save them, they’ll only become worth more than a nickel!
Due to the lack of silver being used for coins, the price of silver slumped from 1964 through 1970, because Americans were busy taking all silver coins out of circulation, and the treasury was selling 674 million ounces left over from ceasing making silver coins. Selling what they had of value, naturally. When I began dealing in precious metals in November of 1977, as I remember, silver was about $4 -$5 per ounce, compared to today’s $25. I was selling one ounce gold coins for $250 then, and of course was telling everyone to save in real money, not dollar denominated paper promises from any source. I’ve been saying the same thing for forty years now, and I haven’t changed my mind about my urge.
At first, and still, but not at current reasonable prices, “bags” of U.S. silver coins were popular. Each ‘bag’ contains $1,000 worth of U.S. silver coins. 10,000 dimes, 4000 quarters, or 2,000 halves. Since until about the early 1980’s, one ounce silver ‘rounds,’ have become extremely popular, because the each is labeled an ounce of .999 silver, whereas U.S. silver dimes, quarters, or halves don’t contain ounce weights or purity contents. U.S. silver coins used to contain 90% silver and 10% copper. The U.S. Mint began making Silver Eagles in 1986, and others followed, with the Canadian Silver Maple Leaf (.9999 pure), following the Eagle. Currently, our silver Buffalo is very popular, and at one time had a three-month delay, the demand was so strong. Finally, there was immediate delivery, until the recent bank failures, and demand has been so strong that delivery is not till mid-June. Lock them in at current prices, and get delivery when mints catch up. Bank failures always bring people out of their slumber, realizing that paper money is a lousy way to save.
Our Silvertown mint in Indiana, is very efficient. The spot price of gold and silver, is the price mines are paid for the ore coming from the mine. After the ore is recovered, it must be milled, where the 1% of metal is taken from the 99% of rock which holds it. Gold and silver is rarely seen in ore, it is so microscopic. After milling, it must be further purified, manufactured, transported, and distributed. We are doing this at just a couple dollars over spot, in your hands! How? We do no advertising, have no offices or employees, and deal directly with the mine owner, as far as silver Buffalos are concerned, compared with about $10 over spot with Silver Eagles, which are made by union employees of the U.S. mint at West Point New York. Isn’t government efficient?
IS IT GOING TO GO UP?
Is the sun going to shine tomorrow? Will the Earth continue to rotate? Will the U.S. or any government, balance their budgets and spend what they take in with taxes? Not unless history ceases repeating itself, and it never has. Inflation is caused by deficits, which have been eternal since man became residents of Earth. Asking whether silver and gold will ‘go up’ in paper money, is absurd, since the answer is affirmative. People have been asking me if metals will ’go up’ for the 40 years I have been dealing with them. As sure as we won’t see nickel Hershey Bars, nickel Cokes, $4 silver, $35 gold, or 20 cent gasoline again, we won’t see these at many times their former prices, as the dollar has lost its value or purchasing power due to politicians refusing to stop spending to garner votes from the sheeple who vote. The presses will continue to roll. Trump, who I loved while he was in office, never even slowed the deficit, and Biden and his Democrat socialists, have spent so many trillions of increasingly worthless dollars, that even Obama’s spending was picayune by comparison. Neither you nor I can stop the inflation caused by politicians and presidents buying votes from the voting welfare class, begun by FDR in 1933.. We can merely protect ourselves with tangible, historic, real, authentic, money, which has always been silver and gold.
Don Stott- don@coloradogold.com.