The origin of silver

The history of silver and silver mines goes far back in time. Silver was already known around 5000 years before Christ, including in Egypt and in the area along the Euphrates River. Recent research has shown that silver was already being separated from lead around 4000–3500 BC on islands in the Aegean Sea and in Anatolia. This is the first step in extracting silver.

Silver in antiquity

In earlier times, silver was often associated with the sea, the moon, and various gods. It gained a mythical status and has been used for ornaments and means of payment since the beginning of our era. Silver necklaces from the Egyptians dating back to 4000 BC are known.

Around 3000 BC, writer Xenophon of Athens reported that mining was declining. When the mines were reopened in the last century, traces were found near about 2000 shafts where possibly 20,000 people had worked.

Thirty years after the Spaniards entered Mexico, modern mines emerged there. In 1522, the first silver from Mexico arrived in Europe. Later, huge amounts were also extracted in California and Australia. Because of silver discoveries in the U.S., all earlier finds were soon surpassed. It was also found in large quantities in Ontario (Canada). In the U.S., Australia, and Canada, large amounts of silver are still being mined.

Silver as means of payment

The Romans began using silver and gold as a means of payment, with silver coins playing an important role in their economy. These coins were used for both local and international trade, due to their value and durability.

The Chinese adopted this use and introduced silver coins as part of their economic system. Precious metals were highly valued because they were not only durable but also relatively stable in value, even during economic turmoil.

In the Middle Ages and the early modern period, silver was widely used as the standard for national currencies. Many countries minted silver coins that served as legal tender and a reliable basis for trade.

The Spanish silver fleet, which transported large quantities of silver from South America to Europe in the 16th and 17th centuries, played a crucial role in the global monetary system and stimulated international trade.

Until the 19th century, silver remained the backbone of many economies and served as the basis for national currencies and international trade standards. With the rise of industrial paper money and later fiat money – money without intrinsic value – the use of silver as a means of payment gradually declined. Nevertheless, silver has maintained its reputation over the centuries as a valuable and reliable medium of exchange, and today it still plays a role as a raw material and investment asset.

The modern significance of silver

Nowadays, silver mainly plays a role as a raw material in various industries and as an investment. In medical devices, silver is used as a conductor of radiation and electricity. Of course, all kinds of jewelry are also made from silver. Are you interested in investing in silver, for example in silver bars or silver coins? Contact us!

Disclaimer: The Silver Mountain does not provide investment advice and this article should not be considered as such. Past performance is no guarantee of future results.