Wholesale Silver Bullion: From Ancient Trade to Modern Investments

Silver Bullion Through Time: From Ancients to Today

When It All Began?

It all began around 3000 BC, with some of the earliest civilizations in Mesopotamia using silver for jewelry and decorative objects. Fast forward a thousand years and silver’s value soared. By 2000 BC, civilizations like the Greeks and Egyptians were using silver ingots, which were lumps of refined silver, for trade. These early forms of wholesale silver weren’t standardized, but they laid the groundwork for silver’s future as a form of currency.

Standardized Minting Started In?

Around 600 BC, kingdoms Lydia officially started minting standardized silver coins to make trade much easier. These coins weren’t just for buying things but also for showing off wealth and power. 

Silver’s journey as wholesale bullion continued through the Middle Ages and beyond.  The massive silver mines discovered in the Americas in the 1500s led to a vast increase in silver production.  This “SILVER RUSH” created a flood of silver into Europe, boosting economies and making silver coins even more common.

In the American West, around the 19th century, prospectors flocked to mine silver, and the resulting silver bullion played a crucial role in financing the growth of the United States. However, the 20th century brought a shift. Governments started using less silver in coins, and its role as a primary form of currency faded.

Despite this change, the evolution of silver did not end. Today, wholesale silver bullion comes in various forms, like silver coins in Canada, bars, and rounds, and it’s still seen as a valuable investment. Silver’s price often rises during economic uncertainties, making it a hedge against tough times.  

So, from those early Mesopotamian trinkets to the silver bars traded today, silver bullion such as Canadian silver coins value, has played a remarkable role in history. 

Future Investment Potential of Silver Bullion 

Silver, due to its affordability, is considered as an alternative way of investment to traditional assets.  Since its all-time high of $49.51 per troy ounce (oz) in April 2011, silver has recently made a comeback in the COVID-19 pandemic, reaching over $28/oz in May 2021. In 2023, it again shows a rose in the price of around  $26/oz, nearly the previous year’s 2021 price. So, with this, it is clear why investment in silver bullion is a smart move. Let’s briefly talk about it!

Central Bank Reserves

Some central banks diversify their reserves by holding precious metals like silver coins. The Silver Institute reports that total global above-ground silver stocks are estimated at around 1.2 million tonnes. 

Central banks strategically diversify reserves with silver alongside gold for risk mitigation, portfolio resilience, and long-term wealth preservation. Silver’s liquidity, recognition as a store of value, and alignment with global economic trends make it an attractive addition to central bank asset allocations, enhancing monetary stability and strategic reserve management in an evolving financial landscape.

Supply Constraints

By investing in silver bullion, investors can capitalize on the concept of limited supply in the precious metals market. According to the Silver Institute, annual mine production of silver is around 25,000 tonnes, while industrial and technological demand is estimated to be slightly higher. The finite nature of silver resources and a supply-demand imbalance where industrial consumption often outpaces production create a favourable environment for potential price appreciation. This rarity factor inherent in silver bullions underscores their value, making them an intelligent choice for investors seeking long-term investment.

Monetary Policies and Currency Devaluation

Persistent low-interest rates, expansionary monetary policies, and fiscal stimulus measures by central banks can weaken fiat currencies over time. Precious metals like silver benefit from such conditions as investors turn to hard assets to preserve purchasing power.

Historical Value Preservation

When it comes to historical value preservation, silver bullion investments stand as a testament to preserving wealth across the ages. The intrinsic value of silver, backed by centuries of recognition as a store of wealth, underpins its enduring appeal as an investment asset. As a tangible form of wealth, silver bullions have retained their value through various economic and geopolitical upheavals, making them a reliable choice for investors seeking to safeguard their assets over the long term. 

Fed’s Rate Cuts

Silver bullion investments align well with the context of Fed rate cuts. Lower interest rates typically lead to a weakened U.S. dollar, increasing the attractiveness of precious metals like silver as a safe-haven asset. Investing in silver bullion during such rate-cutting scenarios can be a strategic move to safeguard wealth and hedge against potential inflation risks.

Throughout history, civilizations have used precious metals as a medium of exchange and a store of value due to their inherent rarity, durability, and intrinsic value. This status is derived from centuries of acceptance and trust in these metals as reliable forms of currency, even in modern times.  

If you are thinking “where to buy silver in Canada,”- CanAm Bullion is the top recommendation! The company provides premium bullion products to individuals and businesses throughout the country.

Conclusion

From ancient civilizations using silver for trade and wealth preservation to modern investors seeking stability during economic uncertainties, silver has proven its value over time.

With its recent price increases and great potential for long-term growth, investing in silver bullion is a smart move.