America’s Bright and Shining Knight in the Fight Against Inflation: Silver

Silver has long been overlooked, often seen as gold’s less glamorous sibling, but its recent surge—reaching the highest price in 12 years—reminds us of its historical and financial significance. The price of silver, currently nearing $35 an ounce, has more than doubled since its COVID-era low of $13 in March 2020. Yet, despite this dramatic rise, silver continues to receive minimal media attention. In fact, this underreporting has caused many investors to miss out on substantial returns.

Earlier this year, we highlighted the record price of gold (HERE), which has now surpassed $2,750 per ounce, with similar media silence surrounding its record-breaking climb. Yet again, silver is being overlooked, but this precious metal has been a key player in history and, importantly, in the global fight against inflation.

The Historical Power of Silver

Silver’s history stretches back millennia. The Latin word for silver, ageratum, gives us the chemical symbol “Ag,” while the Proto-Indo-European root selhro translates to “shining” or “silver.” The metal has been coveted for its beauty, utility, and role in monetary systems across empires.

Records show silver first being used as money around 600 BC in ancient Turkey. The Greek Empire soon followed, minting silver coins that became a symbol of their wisdom and economic strength, with the owl proudly featured on their currency. However, Greece’s reliance on silver proved to be a double-edged sword. After prolonged conflict with Sparta, their silver supplies dwindled, forcing the Greeks to abandon silver coins and switch to less valuable metals. This, among other factors, contributed to the empire’s decline

The Roman Denarius and the Fall of Rome

Silver played a similarly vital role in the Roman Empire’s economic rise—and fall. The silver denarius, introduced in 211 BC, was a key part of Rome’s monetary system. At first, the denarius contained about 4.5 grams of pure silver, solidifying its position as a trusted store of value. As the empire expanded, the denarius became central to trade, taxation, and economic dominance.

However, as the empire’s financial needs grew, Roman leaders began debasing the denarius, reducing its silver content to fund wars and government projects. By 268 AD, the denarius contained only trace amounts of silver, and inflation soared. With the public losing confidence in the currency and Rome’s economy faltering, this debasement played a significant role in the empire’s eventual collapse.

America and Silver’s Legacy

The Founding Fathers, well aware of the dangers posed by currency debasement, were keen to enshrine silver and gold in the U.S. monetary system. The U.S. Constitution, in Article I, Section 10, requires that states use only gold and silver as legal tender for debts. It was intended to prevent states from issuing their own money and ensure a stable, hard-money system. Only .999 fine gold and silver could be used to settle debts, recognizing these metals’ long-standing role in preserving economic stability.

But, like Rome and Greece, the U.S. gradually moved away from silver. The Coinage Act of 1873, which demonetized silver, marked a significant turning point, and by 1971, the U.S. abandoned the gold and silver standard entirely. This move allowed for the unchecked expansion of the money supply, leading to the inflationary pressures we face today. For more in depth details on Americas currency history, check this article out (HERE ).

(This image highlights how U.S. quarters were made with 90% silver until 1964. Today, thanks to rising silver prices, one of those quarters is now worth approximately $6.50 based on current silver value.)

*Side note: Inflation has gotten so bad in America that the government is in talks of removing all metal in the coins (“Coin Metal Modification Authorization and Cost Savings Act of 2020”.) because as a recent report from the US mint states “that in 2022, soaring costs for raw metals drove the price of minting a single nickel past 10 cents, or more than double the value of the coin itself.

Silver’s Importance Today

Now, as inflation soars, silver is poised for a resurgence. As a tangible asset with intrinsic value, it offers protection against the devaluation of paper currencies. Silver’s industrial demand in sectors like electronics and solar energy only adds to its investment appeal which it didn’t have previously as renewable energy like solar have never been more demanded and needed today, creating a perfect storm for future growth.

Despite its relatively low price compared to gold, silver has the potential for even greater percentage gains. For investors seeking portfolio diversification, silver offers a hedge against both inflation and economic uncertainty, just as it did in empires past.

Silver may not be grabbing headlines, but its role in history—and its potential for future growth—makes it a shining knight in the fight against inflation. Those who pay attention now stand to benefit as this overlooked asset regains its rightful place in the spotlight.