Some History of Precious Metals

Long before any government even thought of producing paper money “currency”, people relied on bartering to obtain or “purchase” what they needed.  It was common to trade chicken’s, produce, or other foods for other goods and services.  We have all probably seen an old movie or show where a doctor is paid in chickens, eggs, bushels of apples, or fresh pies.  In the civilized world, merchants traded goods and services, but this would sometimes be very inconvenient and cumbersome.  It was difficult to carry all of the goods necessary to trade for something a great distance away.  The big question was, what if you didn’t need what someone had to offer for your goods?

Eventually, there had to be a way to conduct commerce with another means of payment, that was widely recognized for its value.  Some sort of currency.  The currency had to be portable, consistent in value, and a strong medium of exchange.

Across the civilized world, Gold and Silver became highly desirable, valuable, and “precious”.  It was easily portable, especially in smaller form.

Economic Use of Gold and Silver

Gold and silver, and sometimes other precious metals, are often seen as hedges against both inflation and economic downturn.  Silver coins have become popular with collectors due to their relative affordability, and, unlike most gold and platinum issues which are valued based upon the markets, silver issues are more often valued as collectables, far higher than their actual bullion value.