Thinking of Buying Silver?

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Advantages and Disadvantages of Silver

by Bill Sardi

Recently by Bill Sardi: A Gold Economy Begins

  • Silver is not being mined like gold is. New silver mines not as plentiful. See Silver Institute web site for accurate information on supply and demand of silver. Only 36 U.S. silver mines report production (Source: Wikipedia)
  • Annual gold production: 2,310,000 kilograms (kilo = 2.2 lbs) Annual silver production 20,900,000 kilograms
  • No silver reserves kept by central banks
  • Less likely to be confiscated
  • Less expensive to purchase
  • In greater demand than gold (largely by females who desire silver as a more affordable shiny metal; but also has industrial demand as silver is used in industry for silverware, in photography, electronics, etc.)
  • Silver coins are more practical for use in commerce because of its lower value (can buy groceries with it)
  • US silver coins should be distinguished from silver rounds, which are not legal tender in the U.S.

Silver round, looks like U.S. coin

U.S. silver Eagle, legal tender in U.S.

  • Don’t need to get a lot of worthless paper money in return, for example, if buying a $200 item with a $1200 gold coin.

  • Public is more familiar with silver than other gold alternatives like palladium or platinum.
  • If silver never rises in value, it is still OK as a hedge against paper money, as the interest paid on banked money is currently negligible.
  • Silver does require more room to store than gold on a per-dollar basis.
  • US silver Eagle coin has face value ($1) that must be honored as legal tender and is currently worth 5.5% of its purchase price (~$18), whereas gold Eagle has face value of $50, which is 4.0% of purchase price (~$1200).
  • Silver may not be as volatile in value as gold. (Price may not swing up and down as much.)
  • More likely gold will be sold off in profit-taking than silver, meaning it won’t be as likely to fall as steeply in price.
  • The historical high price of silver (~$54/ounce) was manipulated by Hunt brothers around 1980, creating the false impression that silver has never recovered from its all-time high.
  • There are many more stashed silver coins, of all denomination, country of origin and size, than gold pieces. To determine the value of "junk silver" coins, refer to the inexpensive paperback book Investing In Junk Coins (109 pages) by Keith Hamburger.
  • If adjusted for inflation, here (below) is the actual value of gold and silver, if they were not manipulated by Central Bankers. You can see both gold and silver are vastly undervalued. (Chart courtesy Tulving Co.)
  • Silver is mentioned 320 times in the Bible, often referring to the wealth of kings. Silver is often referred to, alongside gold, as money. (Book of Ecclesiastes 2:8) We borrow silver (and gold) from God, at zero rate of interest (The silver is mine, and the gold is mine, saith the LORD of hosts — Book of Haggai 2:8)
  • Silver Certificates were the last U.S. paper money backed by a precious metal, and were printed up until 1964. Executive Order No. 11110, issued by President John F. Kennedy on June 4, 1963, which brought $4.3 billion of silver-backed U.S. Notes into existence, to replace Federal Reserve Notes, apparently cost him his life.
  • It has been said that silver is for survival, gold is to preserve wealth.

Bill Sardi [send him mail] is a frequent writer on health and political topics. His health writings can be found at He is the author of You Don’t Have To Be Afraid Of Cancer Anymore. His latest book is Downsizing Your Body.

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