History Of Silver

Early civilizations across the globe have turned to silver as a standard of beauty, good taste, and value. Many cultures have attributed special, mystical properties to the precious metal. In Peru, the Incas had a reverent attitude to the metal they called "the tears of the moon." Something about silver's eerie gleam captured their hearts and their imagination. Similarly, the Chinese once believed that a single silver locket hung around the neck of a child would ward off malevolent spirits looking to hurt them.

The first people to ever mine silver in a sophisticated fashion were the Chaldeans in 2500 B.C, though humans had been using silver since at least 3000 B.C. Through the cupellation process-a metallurgical process where alloys and ores are treated at very high temperatures in order to separate base metals from precious metals-the Chaldeans extracted silver from lead-silver ores. Later, the Minoans from the island of Crete and the Mycenaeans from ancient Greece continued to raise the demand for silver mining in antiquity.

The first time silver was used as currency was around 700 B.C, when Mesopotamian merchants used it as a medium of exchange for other goods. Later, the famous Greek coin-the drachma-contained 1/7th of an ounce of silver, endowing it with much of its beauty. Spain became the world's biggest silver producer soon after-meeting both the domestic needs of the Roman Empire and the trading requirements with Asia for spices and other crucial goods. Spanish mines were an important source of silver for over 1,000 years. However, this was temporarily interrupted by the Moorish conquest of Spain in the 8th century. After the invasion shut down most of the production there, other European countries had to pick up the slack, including Germany and Austria-Hungary.

Silver production exploded once more after Europe's encounter with the New World. As they made their way around what is now North and South America, conquistadores brought home vast quantities of silver, with the promise of more. The Potosi region of Bolivia was the first major silver extraction in the New World. However, it was nowhere near the largest. About 1.5 billion troy ounces of silver were mined in Mexico from 1700-1800. From 1500-1800, Bolivia, Peru, and Mexico accounted for over 85% of silver production in the world.

Closer to the modern era, silver expanded even further. The United States saw the discovery of the Comstock Lode in Nevada, the Leadsville district in Colorado, and various districts in Utah. World production levels continued to soar from 1900 to 1920 with similar discoveries in Australia, Central America, Canada, Africa, Japan, and Chile. 190 million troy ounces were produced annually during this record-breaking period.

In the present era, people across the world continue to use silver for jewelry and adornment, industrial purposes, and as a dependable source of wealth. Improved mining methods and refined extraction techniques make it even easier to own refined silver.

Uses of Silver

Silver is the most abundant precious metal in the world. Although it is relatively scarce, it remains the least expensive and easiest to own. Like gold and platinum, silver is highly malleable and can be easily fashioned into a variety of shapes and sizes. Silver resists corrosion, and its beauty can never fade over time. A simple cleaning is all silver needs to maintain its sheen, which has been admired since the beginning of human civilization for its ability to reflect light. It is much more reflective than gold, and can reach the most brilliant polish of any metal, making it a sought after commodity for jewelry. In the technological world, silver is admired for its conductive properties-conducting heat and electricity incredibly well. The demand for silver is always high because silver has many unexpected uses.

Medicine

You might be surprised to find silver in everything from catheters, bandages, dressings, surgical threads, and doctor's coats. Silver can also be found in ductwork, as it contributes to a sterile atmosphere. Even more surprisingly, silver has impressive healing properties. Doctors use its powerful bacteria fighting qualities to treat a variety of conditions including burns and Legionnaire's Disease. In fact, the most effective way to treat burns is silver sulfadiazine, and it is used in every single hospital in North America to reduce the chances of infection and promote healing.

Photography

196 million troy ounces of silver were used worldwide in 2003 for photographic purposes. Silver based photography is certainly not the only way to process film, but it enjoys preeminence thanks to its superior definition. Four photons, or particles of light, react with silver halide to amplify the incident like by a factor of one billion times. Modern photography harnesses this power in conjunction with high quality dyes to capture the world around us a place it on permanent record.

Technology and Industry

No other metal has silver's combined strengths: malleability, ductility, electrical and thermal conductivity, reflective capacity, and ability to withstand massive temperature differences. This is why silver is found in every jet engine certified by the Federal Aviation Administration, most automobiles (in their silver tipped switches for starting the engine), printed circuit boards in electrical appliances, telecommunications networks, mobile phones, computer keyboards, quartz watches, Christmas tree ornaments, cutlery, and hollowware. Finally, silver is used in most home water purification systems to prevent a build-up of algea and bacteria in the filters.

Silver Bullion

Silver Bullion is your most basic way to begin investing in silver. It used to be that silver was a metal very commonly used in coinage around the world. After the Great Depression of the 1930's however, the link between precious metals and paper currency was severed, leading to the gradual discontinuation of silver coinage. Silver bullion coins still exist however, mostly for investors. Bullion coins such as the American Silver Eagle are not expected to circulate, although they are technically still legal tender in the United States.

Silver Rounds

Silver "round" is the name given to a privately-owned silver coin. Officially they are called "rounds" and not "coins" because the U.S Mint has a monopoly on the word "coin." Only official legal tender circulating in the country can be called by that name in the market. This includes the coins we are all familiar with-penny, nickel, dime, quarter, etc-and the silver bullion coins described above. Silver rounds do not have a specific value attached to them like silver bullion coins do. Instead, they respond to market forces. Rounds are usually set at one troy ounce (31.103 grams of 99.9% silver) that are 1/10th of an inch thick and approximately 39 mm in diameter. Since they are not legal tender, they can have all sorts of different designs engraved on them.

Silver Bullion Bars

Like gold bullion bars, silver bullion bars generally carry much lower premiums than rounds, making them a great investment. The standard sizes of bullion bars are 1oz, 10 oz., and 100 oz. Also called ingots, silver bullion bars 100 oz. and larger can easily be forged. In many cases, unscrupulous dealers will fill the center of the bar with lead. Only a good assay can determine whether or not a large bullion bar is truly genuine. Bars are marked with the name of the mint, their fineness (which should be 99.9%) and weight. Most silver bars these days are formed through an extrusion method, where melted silver is poured into a die or mold. Always make sure to store bullion bars and rounds in a safe place, and to keep them in their protective covering.

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