Let’s look at the definition of what makes a good money. There are basically six characteristics. A good money has to be durable, divisible, convenient, consistent, have use value, and have a limited supply. Using those six key characteristics, gold ranks first, silver second, and copper third. That’s why those three metals have been preferred money throughout history. They were superior to seashells, salt, cows, paper, and other commodities. In today’s world, it makes sense to bring Bitcoin, which also satisfies those six characteristics into the mix.
Silver has always been a monetary metal, and it likely will remain so. A great deal of silver used to be consumed in photography and X-rays, until a generation ago, but it's hardly used there at all anymore. Digital photography has nearly replaced it.
About 850 million ounces of silver are mined every year, and about another 150 million ounces are recycled. The available supply of bullion, therefore, is about a billion ounces versus about 100 million ounces of gold. That's roughly a ten-to-one ratio on the supply side, although most of the silver is "consumed," whereas almost all the gold is added to inventory. Since 2019, silver has been in deficit. Roughly 150 million ounces a year have been taken from various stockpiles. That explains why its price has risen to a new base level in the $30 to $35 range, and has done better than gold, percentage-wise.
And while we're talking about silver’s unique qualities, it’s worth mentioning that gold also has unique metallic properties. It's the most non-reactive of all metals; gold doesn’t oxidize. It’s the most ductile, meaning it can be drawn into the thinnest wire of any metal. It’s the most malleable, meaning it can be beaten into the thinnest sheet of all metals.
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