Silver Bullion

Silver history is prevalent on the internet, use your favorite search engine and you will find a plethora of information. We will cover the basic finding and use to society and how silver has been the backbone of many civilizations. In the world of bullion silver was not the first to be found. That distinction belongs first to gold and copper. Silver for the most part is found among other metal ore particularly lead and needs to be separated in order to be turned into bullion.

History shows the first silver being discovered in the modern region now known as Turkey (Anatolia) around 4000 BC. It was immediately used as jewelry, decorative pottery, exchange and artwork. Once found by man it was elevated to a status as unique and valuable. In its natural state the silver ore found is mixed most commonly with lead. Lead unfortunately is a poisonous substance and many men died in the processing and mining of silver. Free men would refuse this type of work knowing the consequences and slaves were used for thousands of years. Imagine, having been born into slavery and having to work at the end of a whip harvesting others riches always knowing your fate.

Open pit and underground mines are the commonly accepted methods used to gather the metal ore. For thousands of years it was common practice to extract the ore and grind it with the use of donkeys and carts pulled in a merry go round fashion, allowing the wheels to slowly break down the mineral ore. This grinding was then followed with a flotation method to further separate the desired elements and then heated (smelting) in a "cupellation" process. It is no wonder many people did not live past 30 years of age having been repeatedly handling dangerous chemicals. Once enslaved into a mining camp your expected death was only 3 to 5 years out.

The first large deposits were found in the region of Greece around 1000 BC and was the foundation of the Athenian Empire. It was the mines of Laurium that allowed this great civilization to build Navies and control its region and then build the great city of Athens. For at least 1000 years these mines were the largest known deposits of silver and the financial backbone to this great era. During the height of production it is said to have produced over one million troy ounces of silver per year.

Spanish mining dominated the first 1000 years AD. With expansion and additional mines the Spanish searched the ever reaching lands in a quest to find this desired ore to turn to bullion and coin. Greece, Asia Minor, and Italy were soon Spanish mining operations to satisfy the Romans thirst for conquest and it's ever expanding empire. The Romans military pressure for more silver was surely behind some necessity but mans desire of this eternal element was just beginning.

Production processing and technology of metal ore was expanded with the use of chemicals like mercury during the New World Era. Driving the quest for "more" as the wealth procured from its process enriched trade among Nations and developed a deep seeded dependency and allure of this unique element. Worldwide silver became a medium of exchange for goods and services among peoples of many lands and culture. Turned to coin it became an acceptable rate of exchange and also a viable method for governance to collect taxes and maintain civilizations.

In its control of monetary policy many great nations were forced to thin silver content in its coins when silver became scarce or was overly spent on expansion. This as we look back was a form of deflation and inflation, as the "money" supply increased it held less and less actual silver and eventually causing goods and services to bring more coin as the people understood the content and its vital element was not what it used to be, Greshams law will always be applied.

The Spanish eventually set sail among the oceans in a desire to find more commodities in which to trade and prosper. The Americas was the destination and location that found the new silver ore that would catapult Nations and quench the thirst of those looking for power and commerce. 85% of the worlds silver mining production soon came from but a few lands and was the beginning of global trade. Bolivia, Peru and Mexico enriched Europe and expanded Nations and perpetuated wars among States as mans desire for silver seemed never ending. It was not until the 1850's when the Comstock lode in Nevada was discovered did this process change. As new silver deposit discoveries were made nations came to power and others dwindled when their virtual money pit dried up or was taken in conquest.

The late 19th and very early 20th century was an exciting time in the production and mining of precious metals. Steam driven and eventually fossil fueled based mining equipment with the innovation and technology of man allowed ever more methods of discovery. Drilling deeper, traveling further and faster, hauling more for less began an infusion of wealth that expanding Nations had a firm understanding and desire. More and more various Countries around the globe found deposits and began mining this unique element. Australia, Canada, Mexico, Chile, Japan and many others utilized modern technology in the ore quest. A process known as "fuming" allowed silver ore to be removed from previously un-workable metal ore.

Coining the metal had become common place, and soon coins were produced of all shapes and sizes. Understandable these multitude of variant coins could cause confusion and made balanced trade somewhat skeptical. Soon, Governments in order to maintain society among each of their states would standardize weights and measurements. Instituting national mints to provide an acceptable basis to perform trade among the populace and across the globe.

Silver mines by the end of the 19th century had largely depleted high grade ore. Technological advancement enhanced the process and was needed to increase and maintain the levels that would become needed in the expanding global community. Bulk mining procedures were introduced to handle lower grade metal ore. The Froth Flotation method allowed each element to be separated from lower grade ore. Refining methods were improved to not waste residue that could later be turned into refined silver. Man used his ever expanding ingenuity to continue and expand the harvest of nature's element to his need.

The term bullion is a Anglo-French noun according to Webster's dictionary deriving its name in the 14th century. A combination of "bille" meaning ingot and "boillion" meaning liquid broth. In relation to silver and other precious metals it is the consistent purity of a natural occurring metal ore refined to its most purest form. At least as pure as technologically possible. Generally to a 99.9% consistency, made into bars, small ingots and coins valued among people as a measure to retain wealth. It is the desire of the market place that ultimately dictates value. Supply, demand and technology can ever change value of bullion metals, rendering them at the will of civilization and industry.

At the heart of bullion lies the reality that these metals are numbered in supply. As a natural occurring metal man's advancement can not create only control its evolution and use. Although alloys have been produced we will stick with the fundamental metals in our definition.

Industrial use of bullion is used in many arena's and ultimately plays the largest role in a metals value. As technology and mans appetite grow it is being recognized that pure forms of these specific elements play a greater role. As factories supply large quantities of material, any precious metal involved becomes more valuable as it must be obtained in mass quantities. Being a limited supply product these bullion forms of precious metal rise and fall in value depending upon the quantities that which the consumer of goods desires and needs.Let us take a look at the most recognized metals and their bullion use.

Copper by far has been the leader of industry. Although not always recognized as a precious metal this author disagrees. Being the most prevalent form of usable ore known to man it has had uses as far back as the stone age. It's natural malleable qualities allow shaping and forming of tools and art as well as a natural electrical conductor. Copper also has a natural anti-bacterial trait and is used in the health industry and around food. From architecture to food, copper has many uses and will continue to be a valuable metal sought after by Nations for many years to come.

Nations wealth were determined on the supply of copper such as Sweden which had the "Great Copper Mountain" and backed all of its currency with copper for a thousand years until 1992. Copper has been used by man since its early discovery for many purposes and will always maintain value. Whether it be in plain currency like the pre 1982 US penny or on the hull of a ship to protect from algae and ship-worms as Christopher Columbus sailed the Atlantic. Artwork, pottery, tools, equipment, health and technology the use of copper bullion are plenty.

Early after discovery copper was mixed with tin to form bronze. This allowed better casting of the metal and was soon the leading metal among growing civilizations. Copper has been used for medicinal and surgical purposes as a water purifying agent and surgeons tools. There have been discoveries of 5000 year old plumbing systems in Egypt.The people of Rome valued the metal so much it became currency and Julius Caesar himself cast coins made of copper alloy. The Greeks even attributed the God Venus to copper. In fact the use of copper and tin and the mere value to the time in history gave way to the term "Bronze Age".

Gold is by far the most popular and leader when in comes to bullion investment, a worldwide recognition as a wealth preserver and hedge against inflation.(Some Economists Disagree) Because of its rarity most gold ever mined is still available and simply changes hands. It was stated in a National Geographic article that all the gold ever mined would not fill two Olympic sized pools. (161,000 tonnes) Considering the size of the planet that sure is a small quantity.

Gold is the most malleable metal in existence and has been shaped and formed from the very moment it was found. A single gram of this element can be stretched one square meter. It is no wonder it has such a place in history as early civilizations used this metal to adorn everything, some considering it God's excrement.

Early Egyptian writings have told of gold being more plentiful than sand. Many societies in history have used gold and adorned and praised its existence. Spanish Conquistador's were the downfall of the Inca people in there quest for the metal from the sun. As they invaded, manipulated and killed many in there quest for gold it was the smallpox brought from Europe that laid its toll and ruin of the empire.

Today it is Nations and World Banks that hoard the primary supply of gold bullion. It is used as a safeguard and basis for many currency and monetary instruments. India is the world's leading consumer of Gold, purchasing 800 tonnes per year as a Nation and 25% of world supply. Gold coins are collectors choice as there are many different varieties. The American Gold Eagle, the British gold sovereign, and the South African Krugerrand are minted in 22 carat and the Canadian Maple Leaf contains the highest purity at 99.99% pure.

Silver has many applications similar to that of copper. Silver has been used since ancient times as a metal of exchange and trade as well as jewelry and adornment of arts and crafts. The use of silver seems to have no limit as technology is advancing, science and industry are looking to silver as a staple to the future. Photography up until late was a main use for silver which at one point was consuming almost 50% of available silver mined. Future technology is turning to silver in many applications as its characteristics make it the element of choice in industry such as health, solar, electronic and batteries to name a few.

Oddly, silver was once looked upon and treated as almost unlimited in supply. Having been used in material and goods that eventually made their way to landfills and trash heaps. Silver unlike Gold was tossed away and some reports indicate that 90% of mined silver is now lost forever. As there remain deposits yet to be mined, those too are limited like all precious metals. The use for silver is increasing and that which has been mined is lost. As an investment silver looks promising.

The Spanish Reale or piece of 8 was used as currency among the Americas for generations and used to pay taxes to England before the revolutionary war and America's independence. Some culture's refer to silver as the "tears of the moon". The U.S.A. used 90% silver in its coinage until 1965. The coins had become more valuable in metal content than the actual face value and the process had to be terminated. Silver enthusiasts now collect these coins as Junk Silver Coins and value them similar to bullion. A rush for silver and a attempt to corner the market by the Hunt Brothers in the late 1970's caused many U.S. silver coins to be sold and melted for bullion. Bullion coins like the American Silver Eagle made by the U.S. Mint contain 99.9% pure silver as well as the Australian Kookaburra, the Royal Canadian Mint produces the only 99.99% silver coins with the Maple Leaf design.

As with other precious metals smaller mints produce bars, ingots and collector coins in bullion form. All bullion coins carry what is called a premium. A price above metal value (spot) which covers production costs and a small profit. Lately silver premiums have been increasing and some speculate a possible manipulation in the market by large banking institutions. In 1900 it was recorded that there was 12 billion ounces of silver today that number has dropped substantially to 300 million. Supply and demand will have the final say to the outcome of all precious metals and bullion.

Many companies are available to purchase silver bullion. Not all have earned a solid reputation and standing among silver bullion enthusiasts and collectors of premium bullion products. As a avid collector and bullion connoisseur one takes pride in the qualities and unique character of any representation of bullion. Only selecting to invest in bullion of the highest standard with well known quality and production. Bullion can be purchased in many forms including bars, ingots and coins, minted from governments or private companies. The general consensus represents maintaining a high quality low premium to silver spot price in your purchase.

A recent experiment conducted by JadeDragon with the help of the realcent forum members in search of the preferred choice in silver bullion producers. These members represent all walks of life and unite when the topic of precious metal, bullion and numismatic coins. The combined experience and educational value contributed by these members enlighten seasoned and new collectors alike. Their recent contributions and recommendations for silver bullion producers are used here to guide anyone interested in precious metals.

Johnson-Matthey

Pamp Suisse

Credit Suisse

Argor SA/Chiasso

Market Harmony

U.S. Mint

Englehard

A&M Metals

Ohio Precious Metals

Quality Silver Bullion