![]() In Roman times, the price ratio was set at 12 (or 12.5) to 1. The gold/silver ratio is the oldest continuously tracked exchange rate in history. The gold/silver price ratio is often analyzed by traders, investors, and buyers. The crustal ratio of silver to gold is 17.5:1. Silver often tracks the gold price due to store of value demands, although the ratio can vary. At times, this can cause wide-ranging valuations in the market, creating volatility. ![]() The price of silver is notoriously volatile compared to that of gold because of the smaller market, lower market liquidity and demand fluctuations between industrial and store of value uses. The price of silver is driven by speculation and supply and demand, like most commodities. However, "junk silver" coins, which were originally minted for circulation, can still be found in circulation, albeit rarely, and are common targets in the practice of coin roll hunting. While these bullion coins are legal tender, they are rarely accepted by shops. Millions of Canadian Silver Maple Leaf coins and American Silver Eagle coins are purchased as investments each year. The motivations for stacking silver varies between collectors. Ĭollectors of silver and other precious metals who collect for the purpose of investment (either as their sole motivation or as one of several) are commonly nicknamed stackers, with their collections dubbed as stacks. In 2011, the global silver reserves amounted to 530,000 tonnes. In 2009, the main demand for silver was for industrial applications (40%), jewellery, bullion coins, and exchange-traded products. Some countries mint bullion and collector coins, however, such as the American Silver Eagle with nominal face values. It has been regarded as a form of money and store of value for more than 4,000 years, although it lost its role as legal tender in developed countries when the use of the silver standard came to a final end in 1935. Silver may be used as an investment like other precious metals. Various examples of American coins used as silver investments, including pre-1964 circulating silver coins and American Silver Eagle bullion coins.
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