Silver has long been used by the human population as a source of material to make items such as tools and utensils, not to mention the ever-growing desire for ornaments and jewelry over the course of several centuries.
In ancient Rome it was used as currency and it was used as a disinfectant during the Middle Ages. During World War II, when copper started to become scarce, silver was often used as a substitute because it was so readily available and plentiful. There are even several mentions of silver in the Bible.
Ironically, this extremely frequent use of silver mostly came during a time when silver was at its highest value. When compared to the current value of the United States dollar, the cost of silver per ounce during the 15th century is estimated to have been at an astonishing $1200 per ounce. Since that time, the price has fluctuated dramatically, making the prediction of any future values nearly impossible.
In 1980, the cost rose to its then all-time modern day high at just under $50 per ounce, which would actually be closer to $150 by today’s standards. However, it quickly fell and remained falling until roughly 2001, where it began the steady climb back up. In April of 2011, silver broke its own record by rising to $49.76 per troy ounce.
While this may seem like an ordinary feat, it definitely is not. The cost of silver per ounce increased more than one hundred percent between January of 2010 and June of 2011, while gold only managed to grow thirty-four percent. Many people have always considered gold to be the better performer on the market, but during that time it was, in fact, silver that sailed to the top. This fact, in and of itself, is more than enough of a reason to consider an investment in silver.
The reason that the cost of silver per ounce has continued to steadily climb over the past few years is because of the fact that where this once plentiful precious metal was easy to come by, the world’s resources are slowly being depleted as they are outweighed by the demands for it (as they have been year after year since approximately 1990). With the introduction of newer high-tech uses, this demand will put an even greater distance between itself and the available suppl
You should most certainly not take all of this as a green light to pour all of your money into an investment in silver. Considering how volatile the market is and has always been, and how much the cost of silver per ounce has varied over time, it would be wiser to gather as much knowledge about silver and the market itself before making any rash decisions.
While investing in silver can certainly have the potential to be lucrative and highly rewarding, it is important to have all available information before traveling any new road. This brief history is by no means a complete one and it is imperative that you know as much as possible when deciding where to invest your money.