History Of Silver Prices

Silver is a lustrous metallic element that has had luxurious value throughout the history alongside gold and other precious metals. Like other precious metals, silver was also used to make jewellery, currency coins, ornaments and utensils that had high monetary value. Even though the silver price history suggests that the value of other precious metals and gemstones like gold, platinum, diamond, ruby, pearl etc were much higher than that of silver, it has always been considered an item of luxury and royalty throughout the history. It was the first metal to be used as a currency. We often come across legends and fables in which silver coins were used to trade for goods and services. Silver was used as the main medium of trade rated second after gold in value.

If we look at the silver price history, it was used to make currency coins since 700 BC in its impure form. Later on, pure silver coins started being used as basic currency coins for pound sterling (United Kingdom) and French Livre ( France). Gradually with the dawn of 19th century most of the countries in the world moved onto the gold standards due to the fear of loss of value for silver and thus the currency. This resulted in a shift in money valuation from silver to gold, now the financial strength of a country was decided by the gold it possessed.

According to the silver price history, though silver is valued much lesser than gold it is still very fashionable. Earlier, during the time of silver standards the relative value of Gold when compared to that of silver was stable at 15.5/1. As time changed the value of gold increased and the silver price history saw a comparative value of something close to 50/1. The silver prices rose sharply to $49 per troy ounce in April, 2011. In the year 1980, the silver price history saw the highest value of silver since the gold standards at $49.45 per troy ounce estimated to be $150/troy ounce if adjusted to 2011 values. The price fell again to $10/troy ounce. From 2001 to 2010 the silver historical price moved around an average of $4.37 to $20.19. According to the silver institute, the rise in price of silver is mainly due to fabrication demands and increase in interests shown by investors all over the world. The silver historical price hit an all time high of $49.76 per troy ounce towards the end of April, 2011. The current value of silver is $30.11 per ounce.

Silver has been valued much higher than what it is valued now. It is estimated that the value of silver would have been much more than $1200 per ounce in the early 15th century if valued based on 2011 US dollars. The major cause for the giant dip in the price of silver is the discovery of massive silver deposits in the present world. This happened in the early 19th century when there were discoveries of massive silver deposits in the American continent. This marked the end of the silver standard era and gave rise to the new age of gold standards.

Source by Edmund Peh

History Of Silver Prices