Do you know that during the first eras of the world, people made use of gold and silver to purchase? Well, this was a reality which took place some two thousand years ago. Now if we are going to look at the ratio of silver to gold during those times, the figure would be 12:1. Basically, that was the exchange rate observed during those old times. How do you feel knowing that during those days, an ounce of gold was basically exchanged to a dozen ounce of silver? Exchange rates may also vary from place to place during those periods but basically, the figure illustrated above is the average exchange rate!
The Time When Silver Prices Dropped
If the exchange rate of 12:1 has surprised you, there is another reality that will surprise you even more. Are you aware of the fact that prices of silver actually dropped to a low of 1:100? This took place in the United States under the decree which was signed and imposed by FDR. This appeared and implemented under the Silver Purchase Act, 1934. As a result, the government has augmented is stockpile of white metal to a whopping 3.5 billion ounces. Well, that was really a great stock of silver in the hands of the US government back then!
The Influx of Currency Supply
Silver Prices have gotten in the way to recuperate simultaneously with the influx of other currency. It was in the year 1960 when silver prices have reached a high of 1.29 dollars per ounce. This was made possible by the copious influx of paper bills or money in the US monetary circulation. With such realities that took place in the country, the prices of the white metal have simply recovered from it severe low.
Investing on Silver
As of the present days, more and more people are doing mighty things to bring them mighty profits along the way and one of these ways include the investment of their money to silver. There are many different ways by which you can invest you money on silver but the easiest one is to present your money to the bank in exchange of silver. You can also melt silver coins and sell them for a profit. And since people are doing all possible ways to extract silver from the coins circulating in the US, the minting of silver coins was officially stopped in the country sometime in 1965.
Reasons Why Silver Prices Escalated
Right before the 1970s ended, the prices of silver have climbed so dramatically and were a way too fast. As a result, people kept on buying silver instead of selling them and this took place here, there and everywhere in the country. With the turn of the 80s, prices of silver were availed from five to fifty dollars per ounce.
As of the present days, with the catapulting prices of silver prices, more and more people have become interested to investing their money on silver. And if you are one among them, you may find it helpful to visit us at Golden Eagle Coin today!