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Eriknation's Blog

02 May 2021

Silver! the precious metal.

| Eriknation

Silver is a precious metal used for many different things. They could be used for coins, jewelry, bars and more! That’s why many people like to buy silver bars by ounces, pounds or even kilograms. There is a silver spot price kind of like stocks, the price goes up and down. The silver price doesn’t change much in a day but over the years it could grow at least five dollars per ounce. Which means if someone were to but one thousand ounces and it grew five dollars they would have made 5,000 dollars! Once the silver spot price grew to forty-nine dollars and once twenty-nine cents! The silver price boosted up in 1980, this was mostly because of the actions of some brothers. Their father had died and their dad was a billionaire, the money went to the brothers. The brothers used their money to change the silver price to be very expensive in about a year! The silver price dropped in 1931 due to the Great Depression. Also all precious metals have a spot price. Now let's talk about what makes silver valuable. Silver is valuable because it is hard to find in the ground. Many miners and geologists search and research this rare metal. Silver is now used for proofs and other coins. Back then, quarters, half dollars, dimes, and other coins contained ninety percent silver. But, in about 175 years the silver price was too high so they made coins forty percent silver. But, now silver coins are only proof coins, commemoratives or special coins produced by the U.S mint. This was because the price went skyrocketing in a few years. Many people collect, buy or sell these coins to make money. People can buy silver coins or even bars. There are also these bills called silver certificates, the certificates could be turned in in exchange for silver. Which is now not legal tender but they are still very popular in the collecting world. These silver certs are worth more depending on the condition and they are sometimes put in Hawaii cases. Which makes the certs worth more. If they were legal tender then the U.S would need to give lots of silver away which is worth lots of money. But I’m sure there are other reasons why silver certs aren’t legal tender. Here is a fun fact about precious metals. Platinum used to always be much more valuable than gold. But now gold is over five hundred dollars more expensive than platinum.

I hope you learned or enjoyed my blog. I am still thinking of buying a silver cert or coin right now. So I Hope I can buy one at my coin/bill shop. Thanks.

  • eric the YN

Comments

Long Beard

Level 5

I look at the market every day. Based on the performance charts, the numbers you mentioned happened over a twenty-year period. Or, a 388.26% increase ( $21.00). This is not to say one couldn't see tremendous gains in the short term, evident by the one year chart of 79.12% ( $11.67). Buying currently at $26.52, again taking the performance chart into consideration, a short term return is unlikely to any significant extent. Long term yes. This is what one needs to keep in mind, how long do I intend on holding to receive an above par return? Yes, there are huge spikes on occasion. But predicting these becomes challenging requiring a look into other markets besides precious metals then factoring in economic and political conditions.

slybluenote

Level 5

Great post Eriknation! I really enjoyed your blog today. I, too, once considered collecting silver bullion. For me , I really enjoyed collecting coins better. Thanks for posting!

Eriknation

Level 4

Same.

Mike

Level 7

The price of silver and gold is based on the stock market. When the market is up the price of metals drop. When the market is down the price of silver and gold go up!. I check it everyday.When it but fifty dollars that was a bank scam. It came down as soon as a week.

Long Beard

Level 5

Funny thing with bullion, especially gold, mine production drops when the market is rising above normal.

With silver being so big today in the U.S., thanks to the Mint's Silver Eagle bullion coins and there being so much silver reserves in the western U.S., I can't figure out why the government essentially shut silver down after 1965 to the early 1980's. They just stockpiled it and didn't do anything with it , kind of like gold, only there was much more of it. Silver has really been a moneymaker for this country but sadly it's taken the brunt of a lot of political and legislative abuse in the past.

Mokie

Level 6

Love silver more than gold. But they are always reusing old Silver so unless some new industrial use occurs, I fear the price will tend to go up and down in a predictable range.

Eriknation

Level 4

Yes. I like silver better than gold in my opinion.

Kepi

Level 6

Good job on silver! Great picture! ; )

Gold is more valuable than platinum? I never knew that.

Eriknation

Level 4

It is today.

Longstrider

Level 6

Great photo. The spot price of silver is based on a contract to buy 1,000 ounces. Many people wrongly believe they can buy a one ounce coin at spot. Good luck with that. Good blog. Sounds like you want to be a "silver stacker". Thanks

DaNumisMasta

Level 5

Good work! I have been riding the silver market for 7 years now. You nailed it!

CoinHunter

Level 5

Nice blog! Thanks for the picture, it really helps make blogs more interesting.

Golfer

Level 5

Nice blog. Hoping silver goes up to 49 dollars an ounce again! That would be exciting for the hobby. Thanks

Eriknation

Level 4

Well I'm hoping the silver price will become 49 dollars again.

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