The recent dramatic rise in the price of silver has generated new interest in what has been called “poor man’s gold.”
One of the highlights of silver’s previous history was the U.S. presidential election of 1896. The Democratic candidate William Jennings Bryant proposed adding silver to the U.S. monetary system. Bryant, a strong advocate of American farmers, contended that adding silver coinage to the existing gold-based currency would generate inflation that would boost farm prices.
Although Bryant lost in 1896, silver subsequently found its way into the U.S. money supply. One of the most famous instances of this was the 1964 Kennedy Half Dollar minted to honor the recently assassinated John F. Kennedy. This coin was comprised of 90% silver. Today, 1964 Kennedy Half Dollars are still available. However, no one uses them for day-to-day transactions. Based upon their 90% silver content, these coins are currently worth between $13-$20.
Besides its growing monetary value, silver has thousands of industrial and medical uses. Moreover, the amount of silver being mined annually cannot keep up with this dual demand.
I’m not a financial advisor, but it seems clear that anyone seeking an affordable hedge against growing inflation may want to explore silver.
