From A Mesopotamia to Mexico – A Brief History of Silver Coins
Silver has been used for many years as a fungible good of exchange and decoration starting with ancient civilizations. While, silver was used much earlier for jewelry, Mesopotamian traders collected silver in exchange for their goods as early as 700 B.C. Silver coins and the history associated with them have played a key economic role in the development and growth of civilizations ever since its use in Babylon and Syria.
Silver’s value is derived from its scarcity. While, it is not as rare as other precious metals such as gold or platinum, its rarity in comparison to other metals like copper and iron ore make silver bullion an ideal metal for use in currency. While it will tarnish over time, its durability as a metal makes it ideal as a lasting currency that can be exchanged from person to person over many years.
There are many ancient civilizations known for their silver coin production. Chinese coins are regarded for their age and are known to be some of the oldest silver coins available. They often depict pictures of various emperors and can be identified according to dynasty. Greek silver coins were known to be hand milled and had many intricate designs on them. These coins were only produced into the first century A.D. The Romans began production of silver coins around 200 B.C. and they modeled their methods after the Greek coin makers. An interesting fact about Roman coins is they could never depict the face of someone who was still alive. Islamic silver coins were produced after the 7th century A.D., this included the Ottoman Empire. Many rulers had several coins produced during their reign so; a great variety of styles can be seen in these coins.
The discovery of the New World in 1492 was boon for Europe in regards to silver production. Major deposits of silver were found in Mexico, Bolivia, and Peru; and are still mined today. Mining and production of silver was so prodigious at this time that it is estimated that 25% of the world’s silver supply available today was mine in this period of 1492 to 1770. This is an impressive amount of mining considering the technology available at this time coupled with the fact that mainly deposits close to the surface were harvested.
Silver coins helped America develop its economy. The United States in 1792 fixed the price of silver in relation to gold and made it part of the nation’s currency. This fixed price economic model meant that the value of silver could easily be calculated and there was no need to worry about a varying value for silver as in today’s market. The American Eagle Silver Dollar was minted from this time period up until is discontinuation in 1965.
Today silver is mined as a byproduct of other metals. Mines extract silver from gold, zinc, lead, and copper mines. Recycling programs also exist to replenish silver sources. In 1986 the U.S. Mint began producing American Eagle Silver Dollars again for coin collectors. Silver is still widely regarded as a precious metal and is considered a great investment commodity by many.
For more examples of silver bullion coins such as the Chinese Panda please visit the provided link.
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