If the dollar index drops, the price of silver will be affected. So what does that mean to you? Take five minutes to read about 200 years of silver money in America.
What is the history of silver throughout the ages and even in the United States. Silver coins have been used since the time of Alexander the Great. Silver is a relatively easier metal to work with than steel. In modern times there are endless industrial uses for silver. Silver even has medical applications.
In early America before the establishment of a national mint what commonly circulated for money was not British money but pieces of eight. These were Spanish coins and according to historians were probably the most widely used coins at that time. The standard size of our dollar was derived from the Spanish dollar. The Morgan dollar is actually based on the size of the Spanish coins from the 16th and 17th century.
In the American colonists war with Britain the Continental Congress issued paper dollars called Continentals. These dollars were issued to raise funds. However these dollars were not backed by any precious metals, only a government promise. After the war the government was so indebted that debts associated with the Continental dollar could not be paid off. This is where the phrase "..not worth a Continental." came from.
The founding fathers had a negative view of paper money. This significant fact led to an inclusion in the constitution, Article 1 Section 10 which stated that gold and silver coins would be the legal tender to pay any debts. The government was against fiat money from the start.
Fiat money not backed up by any precious metals leads to dire economic situations. The country of Zimbabwe has seen inflation exceed 6000 percent. The Zimbabwean government issued $1000 notes that would not even buy a loaf of bread. In the 1920s German republic the government issue $1000 mark notes that were so devalued that people actually used these notes as fuel for fires.
Most of America's economic history has used the gold standard during which the government issued legal tender notes. These notes were redeemable for silver dollars. These dollars were approximately 90 percent silver. During the Civil War there was a coin shortage. Union government issued fiat money because people were hoarding coins for their metal content. People hoarded coins because they feared inflation.
There came into existence national bank systems where individual banks could issue money that was fractionally backed by gold and silver. We also had United States silver certificates that be traded for silver dollars. The laws changed in 1971 where the dollar bill is now backed by nothing but a promise from the government.
If you want silver there are several things you can do. You can purchase collector coins which can range in price up to thousands of dollars. You can buy government issued bullion coins from the United States or foreign countries. But be careful with coins from China. Counterfeit coins from China are common. You can buy silver dimes minted prior to 1964. After 1964 the silver content was diluted. Prior to 1964 the silver content was 90 percent.
Thank you and have a blessed day. Live long and prosper.
Ronald Roberts has a lifelong interest in economics and business. A former military officer his favorite quote is: Never despise a humble beginning. His blog is www.americaneaglesilverdollar.info.
For a more direct approach to preserving your wealth visit www.besilverrich.com.
