Is Silver on the Brink of “Extinction”?

In fact, the word “silver” is derived from the Anglo-Saxon word “seolfor” and the Germanic word “silabar” which mean “money.”

The first known silver coins were minted around 600 BC in Lydia, an ancient kingdom in western Asia Minor (modern-day Turkey). These coins were made of a natural alloy of Gold and Silver called electrum.

Later, in the 5th century BC, the Greeks began producing silver coins, which became widely used in trade throughout the Mediterranean region.

In Mexico, the silver peso is still legal tender. And the United States, Canada, Australia, and other countries continue to mint silver coins with official face values.

However, silver’s use as a currency has declined broadly in favor of paper money and digital currencies. Silver coins are now held primarily for investment purposes.

For example, during the early part of the Middle Ages in Europe, gold was the preferred currency because it was more portable and easier to store than silver.

As a result, today, none of the world’s currencies are backed by precious metals like silver or gold, but rather by the so-called “full faith and credit” in the government that issues them.

Despite this, silver is still widely used as an investment asset and in an increasing array of industrial applications, including electronics, solar panels, and medical equipment. Silver also retains monetary properties and can be used as money in barter and trade.

Demand for silver continues to grow, particularly in the electronics and solar industries.

Analyst Zan McPherson of XBullion had some great insights on this topic:

The reality is miners won’t produce all the silver that is needed over time unless they are incentivized to “dig deeper.”