Precious Metals News & Analysis - Gold News, Silver News from Money Metals Exchange

What Does the "Blue Wave" Mean for Gold and Silver?

Thu, 05 Nov 2026 00:00:00 EST

How do you like gridlock?

There will likely be plenty of it in Washington, D.C.

The Blue Wave swept across the political landscape, leaving Democrats in firm control of both congressional chambers.

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With a few elections “too close to call, the Democrats enjoy a 54-44 majority in the Senate and a 240-147 advantage in the House.

How might this new balance of power impact the precious metals markets?

Gold and silver both got a boost with the election results. Gold surged, recovering the $4,000 level, and silver rose to over $53.

However, post-election bounces (and selloffs) tend to be short-lived. How will things shake out in the months ahead?

Domestic demand for gold bars and coins tends to rise modestly under Democratic administrations. However, https://www.moneymetals.com/According%20to%20the%20World%20Gold%20Council,%20domestic%20demand%20for%20gold%20bars%20and%20coins%20tends%20to%20rise%20modestly%20under%20Democratic%20administrations.%20However,%20elections%20have%20not%20historically%20had%20a%20significant%20impact%20on%20gold’s%20global%20performance%20over%20the%20long%20haul.%20%20“Given%20the%20geographic%20diversity%20of%20demand,%20what%20matters%20is%20whether%20the%20resulting%20policy%20changes%20are%20sufficiently%20consequential%20for%20the%20global%20gold%20market,%20and%20whether%20they%20can%20offset%20other%20global%20forces%20that%20drive%20the%20price.”">elections have not historically had a significant impact on gold’s global performance over the long haul.

According to the World Gold Council, “Given the geographic diversity of demand, what matters is whether the resulting policy changes are sufficiently consequential for the global gold market, and whether they can offset other global forces that drive the price.”

So, how might policy shift with the Democrats holding the levers of power in Congress?

Congress will remain constrained by President Trump’s veto pen. It won’t be able to impose the worst of the Democrats’ leftist economic and social schemes. However, an active Congress could significantly restrain Trump.

StoneX provided a nice list of things the Democrat-controlled Congress will be able to do:

Block further reconciliation, including $350bn “mandatory” defense funding and new tax cuts.
Attach conditions to must-pass appropriations and the National Defense Authorization Act (NDAA)
Run oversight: subpoenas, hearings, contempt citations (Trump family crypto, DoJ and Federal Trade Commission antitrust, Iran war, AI)
Control Senate confirmations: Cabinet, judges, Fed governors
Extract concessions on the debt limit
Pass “message” bills that set the 2028 platform

However, the president will have plenty of tools to fight back. Trump has shown no hesitation in using executive powers and pushing them to the limit.

How this tug-of-war for power will play out remains uncertain.

As Metals Focus framed the situation, “The U.S. mid-term election results introduce a new layer of unpredictability for the outlook for precious metals.”

Domestically, Trump will find it impossible to advance any additional tax cuts or finance his spending priorities. However, Democrats love to spend money. Additional spending could be coming down the pike. How much spending rises will depend on the aggressiveness of Trump's veto pen.

Metals Focus analysts think gridlock in Congress minimizes the likelihood of additional fiscal stimulus. However, they do not think it will lead to meaningful deficit reduction.

“Meaningful deficit reduction remains unlikely, given existing spending commitments, rising interest costs and the difficulty of agreeing on tax increases or expenditure cuts. Budget and debt-ceiling negotiations could also become more contentious, increasing uncertainty over U.S. fiscal management.”

Metals Focus thinks this political landscape is modestly bullish for gold and silver.

“For precious metals, these developments offer some relief from the recent macroeconomic headwinds. Constraints on additional stimulus could moderate U.S. growth and expectations for further rate hikes, easing pressure on real yields and the dollar. Their initial decline following the election has already supported gold, although continued heavy government borrowing could limit how far longer-term yields fall. For silver and the PGMs, the benefit of easier financial conditions would need to be weighed against the risk of weaker industrial demand.”

StoneX analyst Rhona O’Connell expressed a similar view:

“Less fiscal stimulus argues for lower long yields and a softer dollar, offset by debt-limit premia in bills and a Fed leaning towards another hike.”

The ongoing war with Iran has had an outsized impact on the gold and silver markets since the U.S. attacked in February. The ensuing oil shock has reignited inflation concerns and raised expectations of a “higher for longer” interest rate environment. This has created significant headwinds https://www.moneymetals.com/news/2026/09/18/higher-rates-are-bad-for-gold-and-silver-or-are-they-005215";>for non-yielding gold and silver.

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Congress could theoretically defund the war. It could also try to use the War Powers Act to rein in the president. However, neither strategy would likely get around Trump's veto pen.

Democrats will also navigate significant political constraints when addressing the war. Trying to cut funding for “the troops” in the middle of a shooting war isn’t politically viable.

At best, Congress may be able to pressure Trump into negotiations. However, it could also incentivize the president to escalate the war before the new Congress can interfere. Once a war has momentum, it’s hard to slow down, much less stop.

Ultimately, the war will create headwinds for gold and silver until the U.S. and Iran reach a permanent settlement. And that doesn’t seem likely. However, things can change quickly in the world of foreign policy.

Metals Focus noted that a durable settlement with Iran would “materially ease” energy price-driven inflation pressures weighing on precious metals and create greater scope for monetary easing.

“This would lower real yields, and a weaker dollar would improve the investment backdrop. Silver and the PGMs could also benefit from lower energy costs and stronger global industrial activity.”

However, the impact wouldn’t be immediate. It will take months to reestablish broken supply chains and restore wrecked refining capacity.

On the flip side, an escalation of the war would likely intensify inflation worries and ratchet up interest rate pressure.

The president will also retain significant power over trade and tariffs. Congress delegated significant decision-making power to the executive branch when it crafted trade policy. As with the war, Congress will have some power to check Trump’s authority; however, he will almost certainly make good use of executive authority, and he will be able to veto any attempts to rein him in.

Meanwhile, the Federal Reserve will continue to play an outsized role in the trajectory of the precious metals markets. Neither Congress nor the president has much power over the Fed’s rate-setting policy.

The Fed outlook is mildly hawkish, with virtually everybody penciling in a rate hike in December and another in early 2027. However, that path isn’t as certain as many would have you believe.

The central bank must navigate the https://www.moneymetals.com/news/2025/11/15/debt-black-hole-putting-increasing-stress-on-american-consumers-004483";>Debt Black Hole. While one can argue rate hikes are necessary to rein in inflation, you can also make a good case for rate cuts to support the debt-riddled, bubble economy. Massive debt levels and an economy addicted to easy money don’t play well in a higher-interest-rate environment.

The bottom line is that we can expect more policy uncertainty in the weeks and months ahead. There will be a lot of bickering and arguing, but how much actually gets done remains to be seen.

Probably not much.

September Central Bank Gold Buying Hit Highest Monthly Total of the Year

Thu, 05 Nov 2026 00:00:00 EST

Central bank gold buying reached its highest level of the year in September, pushing third-quarter purchases well above the five-year quarterly average.

Central banks globally increased their gold reserves by 321.2 tonnes in the third quarter. That was a 42 percent year-on-year increase.

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Reported central bank gold buying totaled 120 tonnes in Q3. The World Gold Council estimated additional unreported central bank purchases totaled 201 tonnes.

“Unreported activity accounted for around 63 percent of the quarter’s demand, continuing the pattern evident since 2022. This means that disclosed country-level purchases provide only a partial picture of the underlying sources of demand.”

Reported increases to central bank gold reserves totaled 228 tonnes through the first three quarters of 2026. When factoring in unreported buying, the total rises to 675 tonnes, a 7 percent increase over the same period last year.

Central Bank Gold Accumulation Accelerated in September

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Central banks globally increased their gold reserves by a net 61 tonnes in September.

The Polish central bank ranks as the top gold buyer so far this year, and it expanded its reserves by another 25 tonnes in September. So far this year, the National Bank of Poland has increased its gold reserves by 123 tonnes. It now holds 673 tonnes of the yellow metal.

In a statement late last year, the https://www.moneymetals.com/news/2026/01/23/poland-announces-plans-for-another-expansion-in-gold-reserves-004631";>National Bank of Poland announced plans to buy up to 150 more tonnes of gold, raising its holdings to a maximum of 700 tonnes.

NBP Governor Adam Glapiński said the expanded gold reserves would elevate Poland to an “elite” status.

“This will place Poland among the elite 10 countries with the largest gold reserves in the world.”

https://www.moneymetals.com/news/2025/05/19/poland-has-more-gold-than-the-european-central-bank-004053";>The Polish central bank already holds more gold than the European Central Bank. To put the country's gold reserves in context, the NBP only held 14 tonnes of gold in 1996.

The pace of Chinese central bank gold buying continued to accelerate in September. The People's Bank of China reported purchases totaling 23 tonnes.

It was the 23rd straight month of reported gold buying, raising official Chinese reserves to 2,410 tonnes. That makes up roughly 9 percent of the country’s official total reserves.

Year-to-date, the People’s Bank of China has reported 80 additional tonnes added to its gold holdings.

Notice the emphasis on “reported” and "official."

China is among the central banks likely holding significantly more gold than publicly disclosed and likely accounted for some of the unreported buying detected by the World Gold Council.

As Jan Nieuwenhuijs reported, the People's Bank of China is secretly buying large amounts of gold off the books. According to https://www.moneymetals.com/news/2025/04/02/chinas-gold-reserves-going-through-the-roof-003956";>data parsed by the renowned Money Metals researcher, the Chinese central bank currently sits on more than 5,000 tonnes of monetary gold in Beijing – more than TWICE what Chinese officials publicly admit.

The mainstream is finally taking notice. https://www.moneymetals.com/news/2026/07/25/goldman-sachs-picks-up-on-chinas-secret-gold-reserve-expansion-005095";>Goldman Sachs picked up on China’s undisclosed purchases earlier this summer, and BMO Capital analysts estimated that https://www.moneymetals.com/news/2026/07/30/could-chinas-gold-reserves-surpass-the-us-within-five-years-005101";>Chinese gold reserves could surpass the U.S.’s within five years.

After selling one tonne of gold in July, Uzbekistan pivoted back to buying in August, adding 8 tonnes to its reserves. It followed up in September with an additional 7-tonne purchase. So far this year, the Uzbek central bank has increased its gold holdings by a net 57 tonnes.

The Uzbek central bank holds about 90 percent of its reserves in gold.

It is not unusual for central banks that buy from domestic sources, such as Uzbekistan and Kazakhstan, to pivot back and forth between buying and selling.

Speaking of Kazakhstan, its central bank reported a 5-tonne increase in its gold reserves in September. It has expanded its gold holdings by just under 44 tonnes this year.

The Czech Republic has been one of the most consistent gold buyers over the last few years. The trend continued in September with yet another 2-tonne purchase.

The Czechs have adopted a slow, steady approach, buying gold for 43 straight months. The country added 20 tonnes to its reserves last year and now holds 88 tonnes of gold. Czech officials say they plan to increase gold reserves to 100 tonnes by 2028.

Jordan (4 tonnes) and Bolivia (1 tonne) also reported gold purchases in September.

Russia was the only notable seller in August, shrinking its gold reserves by another 6 tonnes. Russia has sold 72 tonnes of gold year-to-date, leaving its official gold reserves at 2,265 tonnes.

Russia is https://www.moneymetals.com/news/2026/07/23/russia-continues-to-sell-gold-to-support-its-economy-005087";>tapping its gold reserves to cope with economic sanctions and a wartime economy.

The Big Picture

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Looking at the trends, central bank gold buying moderated in 2025 but remained far above the recent historical average. Official net full-year buying came in at 863.3 tonnes. That was down 21 percent year-on-year, charting the lowest level since 2021.

However, although central bank gold purchases declined last year, they remained well above the 2010-2021 annual average of 473 tonnes.

Last year was the fourth-largest expansion of central bank gold reserves on record. The all-time high was set in 2022 (1,136 tonnes). It was the highest level of net purchases on record, dating to 1950, including since the suspension of dollar convertibility into gold in 1971.

The surging gold price likely tempered central bank gold accumulation earlier this year. As the World Gold Council put it, the higher price prompted “a more cautious approach.”

The WGC noted that buying picked up as the price dipped in the second and third quarters.

“Although this moderation may have supported purchases at the margin, prices remained historically elevated, suggesting that longer-term strategic considerations, such as diversification and risk management, have remained the primary driver of demand.”

In the latest https://www.moneymetals.com/news/2026/06/25/survey-central-bankers-plan-to-keep-stacking-gold-005007";>World Gold Council survey, central bankers overwhelmingly said they expect global gold reserves will continue growing over the next 12 months. They seem to be putting their money where their mouths are. With prices moderating, it appears that several central banks are taking advantage of the recent correction to accumulate gold more quickly.

The World Gold Council said central bank gold activity “suggests that central bank activity continues to reflect longer-term reserve objectives, while monthly fluctuations are more likely to capture differences in implementation, market conditions and country-specific liquidity requirements.”

Why Gold Crashed Below $4,000—and What the Fed’s Rate Pause Means for Gold and Silver

Thu, 05 Nov 2026 00:00:00 EST

Gold’s sharp Friday sell-off caught investors’ attention. The metal fell below $4,000 an ounce even as bond yields declined and the U.S. dollar weakened modestly, conditions that would usually support gold.

On the latest Money Metals Midweek Memo, host Mike Maharrey explains what may have driven the drop, what the Federal Reserve’s rate decision could mean for precious metals, and why he https://www.moneymetals.com/news/2026/10/31/steve-penny-on-silvers-next-bull-market-gold-forecasts-and-options-trading-005334";>remains bullish on gold and silver over the long term.

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Why Gold and Silver Sold Off

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Spot gold fell 3.5% on Friday, breaking through $4,000 support and reaching a low of $3,880, its lowest price in 12 months. Gold rebounded by more than $80 on Monday morning.

The Fed’s hawkish pause and growing expectations of a December rate hike had already weighed on gold and silver. Higher interest rates can pressure precious metals because they do not pay interest. A spike in oil prices linked to the Iran war also added to inflation concerns.

Maharrey points to a https://www.moneymetals.com/news/2026/11/02/what-sparked-golds-off-selloff-005336";>sell-off in technology stocks as the likely immediate catalyst. The Nasdaq fell 2.9% on Friday amid weak earnings and concerns about AI spending and debt. The S&P 500 declined 1.8%.

When stocks drop sharply, investors may sell liquid assets such as gold to raise cash for margin calls. Analysts cited by Bloomberg and Reuters described forced selling of gold as investors sought liquidity. Similar patterns appeared during the early stages of the 2020 pandemic sell-off, when gold fell 3% multiple times, and in October 2008, when gold plunged more than 7%.

Selling may have accelerated after gold broke below $4,000. Stop-loss orders and computer-generated trades can compound one another, pushing prices lower as more sell orders are triggered. Maharrey says these liquidity-driven declines can be temporary. After the Friday drop, gold had https://www.moneymetals.com/news/2026/11/02/gold-and-silver-finally-stabilize-is-the-worst-over-005337";>already rebounded by Monday morning.

What the Fed’s Rate Pause Means

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The Federal Open Market Committee voted 10–2 to hold the federal funds rate at 3.75% to 4%. Lisa Cook and Beth Hammack dissented, favoring a quarter-point rate increase.

The Fed said inflation remained elevated and that officials needed more information before deciding on the appropriate policy stance. Chairman Kevin Warsh did not signal what the central bank might do in December. He said he does not favor forward guidance in ordinary times, though he considers it useful during a crisis.

Warsh also announced changes to the Fed’s meeting schedule. The FOMC will continue to meet eight times a year, but one meeting next year will focus on strategy rather than setting rates. In 2028, the committee plans to hold two strategy sessions and six rate-setting meetings.

The $40 Trillion Debt Challenge

Maharrey notes that inflation had remained above the Fed’s 2% target for 67 consecutive months, while core CPI rose 0.3% in the latest month discussed. DoubleLine Capital CEO Jeffrey Gundlach argued that the Fed should be raising rates, pointing to a 2-year Treasury yield of 4.75% and the Fed’s assessment that the economy was strong.

But Maharrey argues that the roughly $40 trillion national debt limits the Fed’s ability to keep raising rates. Higher rates could help fight inflation, but they also raise borrowing costs across an economy heavily burdened by debt.

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In Maharrey’s view, the Fed faces a difficult choice. It can tighten policy to contain inflation or ease policy to support borrowers, markets, and the broader economy. He expects the central bank to favor easier money when economic or financial stress becomes severe, potentially leading to more money creation, persistent inflation, and further dollar depreciation.

China’s Gold Buying Contrasts With U.S. Demand

World Gold Council data showed https://www.moneymetals.com/news/2026/11/03/gold-demand-steady-in-q3-supported-by-etfs-and-central-banks-005341";>Q3 gold demand of 1,369 tonnes, down 1% from a year earlier. Demand for the first three quarters totaled 3,881 tonnes, nearly matching the 3,884 tonnes recorded over the same period last year.

In value terms, Q3 demand rose 22% year over year to $188 billion. Year-to-date demand reached a record $566 billion. Central bank buying remained robust, and gold ETFs reported inflows in every region.

Physical bar and coin demand differed sharply between China and the United States. https://www.moneymetals.com/news/2026/10/29/somebody-is-buying-gold-right-now-who-005330";>Chinese bar and coin demand rose 7% year over year in Q3 to 79 tonnes. Year-to-date demand reached 393 tonnes, an 11% increase over the previous record, set in 2013.

Chinese spending on physical gold reached $59 billion year-to-date, exceeding every full-year total in the World Gold Council’s data series. Q3 demand value rose 32% to $11 billion. By comparison, U.S. bar and coin demand fell 40% year over year to 8 tonnes, its weakest quarter since Q4 2019.

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Maharrey’s Outlook for Gold and Silver

Maharrey is cautious about the near term and says he would not be surprised by more selling. He raised the possibility of gold testing $3,500 an ounce, while silver was near $50 support. He also cited silver analysts who would not be concerned by a decline below $45.

Despite that risk, Maharrey views the correction as a potential buying opportunity. He argues that the forces behind gold’s rise, including debt, bond-market strains, inflation, and currency debasement, remain in place.

He also referenced a https://www.linkedin.com/pulse/steve-penny-silvers-next-bull-market-gold-forecasts-options-6cpde/"; target="_blank" rel="noopener">recent interview with SilverChartist.com founder Steve Penny, who said $15,000 gold would not surprise him over the longer term. Maharrey’s broader argument is that short-term price moves may reflect trading pressures, while debt and monetary policy shape the longer-term outlook.

The episode also discussed the Money Metals monthly installment program, which lets customers begin building gold and silver holdings with contributions starting at $100 a month. For more information about precious metals products and storage, contact Money Metals at 1-800-800-1865 or visit MoneyMetals.com.

Free Silver Movement - William Jennings Bryan, the Populists, and the Cross of Gold Speech - Why Farmers Backed It, the 1896 and 1900 Election Results, and Why It Failed - Money Metals

Wed, 04 Nov 2026 00:00:00 EST

The free silver movement was a push in the late nineteenth century to make the U.S. Mint coin all the silver people brought to it. This would give silver the same coining treatment as the Mint gave to gold.

Backers wanted more money in circulation so farm prices would rise and debts would be easier to pay. This guide will explore this political movement, not any modern silver giveaway.

This movement was not pushing for a new policy. Rather, it wanted a return to America’s former bimetallic coining system. That system practically came to an end when Congress https://www.britannica.com/event/Free-Silver-Movement";>dropped the silver dollar in the Coinage Act of 1873.

The movement peaked when William Jennings Bryan gave his https://teachingamericanhistory.org/document/the-cross-of-gold-speech/";>Cross of Gold speech in 1896. It faded after Bryan lost the 1896 and 1900 elections. Following those losses, Congress passed the https://www.moneymetals.com/history/what-is-the-gold-standard";>Gold Standard Act of 1900. That act put into law what had already been the practical monetary policy of the country.

What Was the Free Silver Movement?

Free silver was the biggest money fight of the Gilded Age. Farmers, silver miners, and the new Populist Party wanted the government to coin silver without limit. In contrast, bankers, most business owners, and most city voters wanted money tied to gold alone (https://en.wikipedia.org/wiki/Free_silver";>Wikipedia).

Free silver at a glance
Active	1873 to 1900
Goal	Free and unlimited coinage of silver
Main backers	Farmers in the South and West, silver miners, the Populists
Main opponents	Eastern bankers and business, most city voters
Leader	William Jennings Bryan
Famous line	“You shall not crucify mankind upon a cross of gold.”
Outcome	Lost in 1896 and 1900; gold became the sole standard in 1900

What “Free” Meant: Free Coinage, Not Free Metal

Free silver did not mean free metal; instead, it meant free coinage. Under free coinage, any citizen could bring bullion to the Mint and have them mint coins from the metal for a small fee. There was no limit on how much the Mint would coin (https://en.wikipedia.org/wiki/Free_silver";>Wikipedia).

Gold retained that right after the Coinage Act of 1873. Silver did not. The act left the silver dollar off the list of coins the Mint would create (https://www.britannica.com/event/Free-Silver-Movement";>Britannica). Silver backers called the law the “Crime of ‘73.” Our guide to the Crime of 1873 explains what the law did.

Gold and silver coins were both “hard money,” also called https://www.moneymetals.com/history/what-is-specie";>specie. The real question was which metal would back the dollar.

Silverites and Gold Bugs

Free silver backers were called silverites. The silverite faction wanted a bimetallic system, which was the original monetary system implemented by Congress in 1792. Under that system, the Mint coined gold and silver freely.

The rivals to the silverites were called gold bugs. Outside the mining West, the Republican Party sided with the gold bugs. The party argued that only gold made “sound money” (https://en.wikipedia.org/wiki/Free_silver";>Wikipedia).

Why Farmers and Miners Backed Free Silver

Farmers backed free silver because falling prices made their debts harder to pay. Silver miners backed it because the Mint would become an unlimited buyer of their metal. We’ll explore these reasons in a little more detail below.

Falling Crop Prices, Fixed Debts

Prices fell for years after the Civil War. Economists call this deflation. A https://www.federalreserveeducation.org/resources/lessons/lesson--free-silver-movement-and-inflation.pdf";>St. Louis Fed lesson explains the squeeze: farmers got less for their crops, “but their farm debts remained fixed.”

Here is how that worked. Say a farmer owed a loan worth 1,000 bushels of wheat. If wheat prices fell by a third, the same loan now took 1,500 bushels to repay. The debt stayed the same, but the work needed to pay it grew.

Silverites believed more coins would push prices back up. Britannica notes that farmers thought more money “would increase the price of their crops.” Debtors hoped it would help them “pay their debts more easily” (https://www.britannica.com/event/Free-Silver-Movement";>Britannica).

Silver Country

Most U.S. silver came from mines in the West. Mine owners and miners were among the loudest voices for free silver (https://en.wikipedia.org/wiki/Free_silver";>Wikipedia). They wanted the Mint to take all the silver they could dig.

Some Western Republicans broke with their own party over it. In 1896, Senator Henry Teller of Colorado led a group out of the Republican Party. They formed the Silver Republican Party and backed Bryan (https://en.wikipedia.org/wiki/Free_silver";>Wikipedia).

The Populists’ 1892 Platform

Farm groups also built a new party, the People’s Party, known as the Populists. Its first national platform came out on July 4, 1892. It demanded “free and unlimited coinage of silver and gold” (https://www.presidency.ucsb.edu/documents/populist-party-platform-1892";>UCSB American Presidency Project). It also asked for more money in circulation and a graduated income tax.

Group	Stance	Why
Wheat farmers on the Plains and cotton farmers in the South	For	Wanted higher crop prices and lighter debts
Silver miners and mine owners in the West	For	Wanted the Mint to coin all their silver
Populists and Silver Republicans	For	Made free silver a core demand
Eastern bankers, railroads, and factory owners	Against	Wanted loans repaid in gold-backed dollars
City workers, including many German Americans	Against	Feared higher prices and lost jobs
Farmers in the Northeast	Against	Gave free silver little support

Sources: https://en.wikipedia.org/wiki/Free_silver";>Wikipedia, https://www.britannica.com/event/Free-Silver-Movement";>Britannica.

From the Crime of 1873 to the Panic of 1893

Free silver grew out of 20 years of fights over coinage. Each law below has its own guide. This list keeps to one line each.

Year	What happened
1873	The https://www.moneymetals.com/history/crime-of-1873";>Coinage Act drops the silver dollar and ends free coinage of silver.
1878	The https://www.moneymetals.com/history/silver-purchase-acts";>Bland-Allison Act brings back the silver dollar, with limited silver buying.
1890	The https://www.moneymetals.com/history/silver-purchase-acts";>Sherman Silver Purchase Act raises the Treasury’s silver buying.
1892	The Populists adopt their first national platform and demand free silver.
1893	Falling Treasury gold sets off a panic, and Congress repeals the Sherman Act.
After 1893	Pamphlets and silver clubs spread the cause.

The 1893 repeal split the Democrats. President Grover Cleveland, a Democrat, stood with gold. Farmers in the South and West blamed “the greed of eastern bankers” for hard times. They renewed their call for free silver (https://www.britannica.com/event/Free-Silver-Movement";>Britannica).

William Jennings Bryan and the Cross of Gold Speech

William Jennings Bryan became the face of the free silver movement when he gave his Cross of Gold speech. When he made that speech, he was a 36-year-old former congressman. The speech gave the movement its most famous line, and it propelled William Jennings Bryan to a viable presidential consideration.

Who Was William Jennings Bryan?

Bryan was a lawyer from Lincoln, Nebraska. Voters elected him to the House of Representatives in 1890. He served two terms as a congressman. Then, in 1894, he lost a Senate race. No longer a sitting congressman, Bryan took a position as editor of the Omaha World-Herald and worked as a popular public speaker (https://www.britannica.com/biography/William-Jennings-Bryan";>Britannica).

Bryan did not hold any office in 1896, but his speeches and writings led many to consider him the national leader of the free silver movement.

The 1896 Democratic Platform

Democrats met at the Chicago Coliseum from July 7 to 11, 1896 to decide their election platform (https://en.wikipedia.org/wiki/1896_Democratic_National_Convention";>Wikipedia). At that convention, Silver Democrats took over the party. Despite heavy opposition from President Grover Cleveland, Silver Democrats managed to make free silver the main plank of the platform (https://www.britannica.com/event/Free-Silver-Movement";>Britannica).

The plank read: “We demand the free and unlimited coinage of both silver and gold at the present legal ratio of 16 to 1, without waiting for the aid or consent of any other nation” (https://www.presidency.ucsb.edu/documents/1896-democratic-party-platform";>UCSB American Presidency Project). Our https://www.moneymetals.com/history/bimetallism";>bimetallism guide explains that ratio. The same platform called the gold standard “not only un-American but anti-American.”

Cross of Gold Speech Summary

Bryan spoke for free silver during the platform debate on July 9, 1896 (https://teachingamericanhistory.org/document/the-cross-of-gold-speech/";>Teaching American History). Bryan had a simple set of arguments:

Free silver was a moral cause. He called it a cause “as holy as the cause of liberty.”
The country rested on its farms. “Burn down your cities and leave our farms, and your cities will spring up again as if by magic.”
He spoke for working people. He claimed to have “the producing masses” behind him.
America should not wait for Europe. “If the gold standard is a bad thing why should we wait until some other nations are willing to help us to let it go?”

You can read the https://teachingamericanhistory.org/document/the-cross-of-gold-speech/";>full text at Teaching American History or view the https://www.loc.gov/item/09032448/";>Library of Congress copy.

“You Shall Not Crucify Mankind Upon a Cross of Gold”

In the https://teachingamericanhistory.org/document/the-cross-of-gold-speech/";>Teaching American History text, the speech ends with this line: “You shall not crucify mankind upon a cross of gold.” Bryan used the image of the crucifixion to depict the gold standard as a profound burden on working people.

After Bryan gave this speech, the Democratic Party nominated him for president as the party candidate. He was 36 years old at the time. The Populists and the National Silver Party nominated him too (https://www.britannica.com/biography/William-Jennings-Bryan";>Britannica).

The Elections of 1896 and 1900

Free silver lost both times it went before voters. William McKinley, a Republican who backed gold, beat Bryan in both the 1896 and 1900 elections.

Two Very Different Campaigns

Bryan took his case on the road. He traveled more than 18,000 miles through 27 states (https://www.britannica.com/biography/William-Jennings-Bryan";>Britannica). He gave about 600 speeches (https://en.wikipedia.org/wiki/William_McKinley_1896_presidential_campaign";>Wikipedia).

McKinley stayed home in Canton, Ohio. There, he spoke to crowds that gathered around from his own front porch. A great deal of support came from the efforts of the Republican industrialist Mark Hanna. https://www.britannica.com/event/United-States-presidential-election-of-1896";>According to Britannica, Hanna “tapped big businesses for enormous campaign contributions,” while other Republicans heralded McKinley as the “advance agent of prosperity.” In contrast, the Republicans painted Bryan as a dangerous radical.

	Bryan (Democrat)	McKinley (Republican)
Money stance	Free silver	Gold standard
Campaign style	Toured 27 states, over 18,000 miles	Spoke from his porch in Canton
Speeches	About 600	About 300, to some 750,000 visitors
Funding	Poorly funded	As much as 10 times Bryan’s

Sources: https://www.britannica.com/event/United-States-presidential-election-of-1896";>Britannica, https://en.wikipedia.org/wiki/William_McKinley_1896_presidential_campaign";>Wikipedia.

Results

Election	McKinley electoral votes	Bryan electoral votes
https://www.archives.gov/electoral-college/1896";>1896	271	176
https://www.archives.gov/electoral-college/1900";>1900	292	155

In 1896, McKinley also won a majority of the popular vote. He was the first president to do so since 1872. Bryan swept the South and most of the mountain West. McKinley carried the North and the Pacific West (https://www.britannica.com/event/United-States-presidential-election-of-1896";>Britannica).

In 1900, Bryan ran on silver again. He lost by a wider margin, and the issue faded after that (https://en.wikipedia.org/wiki/Free_silver";>Wikipedia).

Why Did the Free Silver Movement Fail?

Free silver failed because it never won over city voters or the industrial North. Then new gold supplies ended the falling prices behind the movement. The Gold Standard Act of 1900 settled the question in law.

Cities said no. City voters, especially German Americans, feared free silver would bring “economic disaster, unemployment, and higher prices” (https://en.wikipedia.org/wiki/Free_silver";>Wikipedia).
Bryan was outspent. Hanna raised far more money and ran a large network of speakers (https://www.britannica.com/event/United-States-presidential-election-of-1896";>Britannica). One estimate puts McKinley’s funds at up to 10 times Bryan’s (https://en.wikipedia.org/wiki/William_McKinley_1896_presidential_campaign";>Wikipedia).
Farm prices turned. Wheat prices rose in the last weeks of the 1896 race. That cooled some farm support for free silver (https://en.wikipedia.org/wiki/William_McKinley_1896_presidential_campaign";>Wikipedia).
New gold did what silver promised. Gold finds in the 1890s brought “a gradual inflation.” Rising gold output “reversed the deflationary trend.” That “ended the call for a bimetallic money standard” (https://www.federalreserveeducation.org/resources/lessons/lesson--free-silver-movement-and-inflation.pdf";>St. Louis Fed lesson).
The Populists lost their voice. Backing Bryan in 1896 marked the end of the Populists as an independent party (https://en.wikipedia.org/wiki/Free_silver";>Wikipedia).
The law closed the door. The final nail in the coffin was the Gold Standard Act of 1900, which made the gold dollar “the standard unit of value” (https://www.govinfo.gov/content/pkg/STATUTE-31/pdf/STATUTE-31-Pg45.pdf";>govinfo). Our https://www.moneymetals.com/history/what-is-the-gold-standard";>gold standard guide covers what came next.

Was Free Silver a Good Idea?

Historians and economists still debate it. The answer depends on who you ask and which year you judge.

The Case For

Falling prices hurt people in debt, and many farmers carried debt. More money would have raised prices and made those loans easier to repay (https://www.federalreserveeducation.org/resources/lessons/lesson--free-silver-movement-and-inflation.pdf";>St. Louis Fed lesson). To its backers, silver was “the People’s Money” (https://en.wikipedia.org/wiki/Free_silver";>Wikipedia).

The Case Against

Gold backers said free silver would cheapen the dollar. Silver was worth less on the open market than the Mint’s fixed rate claimed. Most economists warned that cheap silver coins would drive gold coins out of circulation. Our bimetallism guide explains why that happens.

There were reformers who also disliked it. One progressive writer, Henry Demarest Lloyd, called free silver “the cowbird of the reform movement” (https://en.wikipedia.org/wiki/Free_silver";>Wikipedia). A cowbird lays its eggs in other birds’ nests. Lloyd used this analogy to suggest that free silver took over a reform movement that others had built beforehand.

A Later Verdict

Milton Friedman, a leading figure of the Chicago School of Economics, looked back at the Coinage Act of 1873. From his vantage point in 1990, he called it “a mistake that had highly adverse consequences.” But he stressed that this was “a judgment about 1873, not 1896.” By the time Bryan ran, Friedman wrote, “it was too late to undo the damage” (https://ideas.repec.org/a/ucp/jpolec/v98y1990i6p1159-94.html";>Journal of Political Economy).

In short, Friedman thought silver had a case when the Coinage Act of 1873 passed. However, by the time of Bryan’s 1896 election run, the chance to recover silver had long passed.

Free Silver Campaign Culture and Artifacts

Free silver was more than a policy debate. There was a whole culture surrounding it, including its own books, clubs, songs, and even joke money. Some of these pieces survive today.

Coin’s Financial School

After the Panic of 1893, William H. Harvey put out a popular pamphlet called Coin’s Financial School. It argued that silver would reopen closed factories and relight cold furnaces (https://en.wikipedia.org/wiki/Free_silver";>Wikipedia).

Silver Clubs

Three silver clubs grew in the mid-1890s. They were the Freemen’s Protective Silver Federation, the Silver Knights of America, and the Patriots of America. Harvey founded the Patriots of America. All three faded after 1896 (https://en.wikipedia.org/wiki/Free_silver";>Wikipedia).

Songs and a Silver Fife

Bryan’s campaigns had their own music. Some songs include “Free Silver March” and “Upon a Cross of Gold.” One fife and drum group owns a silver fife that looks handmade. The words “Free Silver Bryan” are carved into its side (https://companyoffifeanddrum.org/news/from-the-archives/silver-fife";>Company of Fifers & Drummers).

Bryan Money

Free silver’s critics mocked it with pieces now called “Bryan Money.” Some were struck in coin silver to show how big a silver dollar would have to be under Bryan’s plan. Some set that size next to a smaller Morgan dollar. Others were cheap tokens with jokes like “In God We Trust, In Bryan We Bust” (https://www.money.org/tales-from-the-vault-bryan-money/";>American Numismatic Association).

Morgan dollars from the free silver era still trade today. You can browse https://www.moneymetals.com/buy/silver/silver-dollars/morgan-dollars";>Morgan silver dollars at Money Metals.

Myth Check: Was The Wizard of Oz About Free Silver?

You may hear that The Wonderful Wizard of Oz is a hidden story about free silver. In the book, Dorothy walks the Yellow Brick Road in silver shoes, unlike the famous ruby slippers of the 1939 film adaptation. A teacher named Henry Littlefield first made the case in 1964 (https://www.historynewsnetwork.org/article/so-was-the-wizard-of-oz-an-allegory-for-populism";>History News Network).

The evidence is thin. Author L. Frank Baum said he wrote the book “solely to pleasure children of today.” He also backed McKinley in 1896. Littlefield later said there was “no basis in fact” to call Baum a Populist (https://www.historynewsnetwork.org/article/so-was-the-wizard-of-oz-an-allegory-for-populism";>History News Network). Treat it as a fun classroom theory, not proven history.

Free Silver: APUSH Definition and Significance

Free silver (APUSH definition): a late-1800s movement of farmers, miners, and Populists to have the U.S. Mint coin silver without limit, so the money supply and prices would rise.

Why it matters:

The movement linked Populists and Democrats in common support for Bryan in 1896 (https://www.britannica.com/biography/William-Jennings-Bryan";>Britannica).
It showed the Gilded Age split between farmers in debt and lenders in the East (https://en.wikipedia.org/wiki/Free_silver";>Wikipedia).
The conflict ended with McKinley’s presidential victories and the passage of the https://www.govinfo.gov/content/pkg/STATUTE-31/pdf/STATUTE-31-Pg45.pdf";>Gold Standard Act of 1900.

Silver After Free Silver

The free silver fight ended in 1900, but silver stayed in American pockets. U.S. dimes, quarters, half dollars, and silver dollars held silver for decades after (https://en.wikipedia.org/wiki/Free_silver";>Wikipedia). Collectors still seek those coins today. Browse https://www.moneymetals.com/buy/silver/coins/collectible-silver-dollars";>collectible silver dollars and half dollars or https://www.moneymetals.com/buy/silver/silver-dollars/morgan-dollars";>Morgan silver dollars at Money Metals.

Free Silver Movement FAQ

The free silver movement was a late-1800s campaign to have the U.S. Mint coin silver without limit. That had previously been the law from 1792 until 1873. Its backers wanted more money in circulation to raise farm prices and ease debts (https://www.britannica.com/event/Free-Silver-Movement";>Britannica).

It meant free coinage: anyone could bring silver to the Mint and have it made into coins. That was a right gold owners already had. It never meant silver given away (https://en.wikipedia.org/wiki/Free_silver";>Wikipedia).

Falling crop prices cut farm income, but loan and mortgage payments stayed the same. More silver money promised higher prices and lighter debts (https://www.federalreserveeducation.org/resources/lessons/lesson--free-silver-movement-and-inflation.pdf";>St. Louis Fed lesson).

It never won city voters or the industrial North, and Bryan lost to McKinley in https://www.archives.gov/electoral-college/1896";>1896 and https://www.archives.gov/electoral-college/1900";>1900. Then gold finds in the 1890s eased falling prices, and the https://www.govinfo.gov/content/pkg/STATUTE-31/pdf/STATUTE-31-Pg45.pdf";>Gold Standard Act of 1900 settled the question.

Those who supported the movement saw it as a relief from falling prices. Critics, however, warned that it would drive gold out of circulation (https://en.wikipedia.org/wiki/Free_silver";>Wikipedia). Milton Friedman, a famous 20th century economist, argued in 1990 that the real mistake came in 1873 with the end of the bimetallic system (https://ideas.repec.org/a/ucp/jpolec/v98y1990i6p1159-94.html";>Journal of Political Economy).

The Cross of Gold Speech was the famous William Jennings Bryan speech given at the Democratic convention of 1896. It attacked the concept of a gold standard and ended with the line that became a leading slogan of the movement: “You shall not crucify mankind upon a cross of gold” (https://teachingamericanhistory.org/document/the-cross-of-gold-speech/";>Teaching American History).

William Jennings Bryan was 36 when the Democrats nominated him in 1896. He is the youngest major-party presidential nominee in U.S. history (https://adp.library.ucsb.edu/names/102765";>UCSB Library).

Silverites were free silver supporters, mostly Western miners and farmers in the South and on the Plains. Their rivals, who backed gold, were called gold bugs (https://en.wikipedia.org/wiki/Free_silver";>Wikipedia).

It faded after Bryan’s second loss in 1900. That same year, the Gold Standard Act made gold the sole standard for U.S. money (https://www.britannica.com/event/Free-Silver-Movement";>Britannica).

Price Pressures and Fed Pauses: Can Gold and Silver Weather the Storm?

Wed, 04 Nov 2026 00:00:00 EST

Gold and silver sold off sharply on Friday. The move was somewhat unusual because bond yields also dropped. This is typically supportive of gold.

So, what happened?

In this episode of the Midweek Memo, host Mike Maharrey explains the sell-off dynamics, why we could see more near-term selling pressure, and why he remains bullish on gold and silver in the long run.

He also covers the October Fed meeting, emphasizing that a rate-hike pause was the logical move given current economic dynamics.

But what's next?

Mum's the word! The Fed ain't talking!

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Mike opens the show with a bit of advice.

"Never, ever, ever read the comments on social media posts."

He says he tries to live by this mantra "because I am prone to wasting time in inane debates with people who don’t know what they’re talking about. It’s not a good use of time."

However, sometimes, he can't help himself.

"The other day, I clicked on a response to one of my posts on X. It was an article about the selloff in gold and silver last Friday. The post read, “Why did gold sell off steeply on Friday, despite falling bond yields and a modestly weaker dollar? The commenter thought it was necessary to tell me that it was because algorithmic selling kicked in as gold fell below the $4,000 support level and, quote, 'The market doesn't care about your macro checklist.'

"Snarky, eh?

"And it’s almost like he didn’t read the article. Because there was no macro checklist, and I never indicated that the move was a macro move."

But Mike concedes the guy wasn't wrong.

"Markets don’t typically factor in macro dynamics. And that’s why the market often gets things wrong long term. Daily headlines move prices all over the place. Macro factors dictate long-term trajectories. For instance, it’s easy to look at rising oil prices, declare they are causing inflation, and anticipate the Fed will raise interest rates. That’s exactly what the markets have been projecting since the Iran war kicked off. But what about the debt? The Fed can’t just willy-nilly raise rates when a Debt Black Hole dominates the economy. You need that macro perspective to understand the complete picture. So, it’s fair to say the markets don’t care about my macro checklist today. But it damn sure will tomorrow, or at least at some point down the road."

Mike says that when gold and silver started dropping on Friday, he told a coworker, "Gold is acting weird."

"It sold off steeply Friday, despite falling bond yields and a modestly weaker dollar. Paradoxically, the mainstream continues to blame weakness in the gold market on inflation worries. So, investors are dumping their https://www.moneymetals.com/news/2024/06/18/golds-role-as-an-inflation-hedge-in-the-21st-century-003263";>inflation hedge. As I said, gold is acting weird. Or maybe it’s more accurate to say investors are acting weird. But perhaps we can make sense of it."

Mike says some of the usual suspects were in play, including higher oil prices, the anticipation of more Fed rate hikes, and inflation worries.

"However, the immediate catalyst for gold’s Friday selloff was most likely connected to the rout in tech stocks. The NASDAQ dipped 2.9 percent on Friday as poor earnings and growing concerns about excessive AI spending and debt sparked bearishness in the sector. The tech selloff also dragged down the S&P 500, which fell by 1.8 percent. Gold prices often fall in tandem with stocks during sharp corrections and in the early stages of a bear market, as investors liquidate winning gold positions to cover losses."

That appears to be what happened Friday.

Mike says additional down days are likely.

"I am medium-term bearish. It wouldn’t surprise me if gold tests $3,500. Meanwhile, silver is already around the $50 support. Several silver analysts I respect said they wouldn’t be concerned if it dipped below $45. However, the long-term bullish factors remain firmly in place. The debasement trade isn’t going anywhere, and the powers that be are going to continue devaluing your dollar. I see this correction and these headwinds as a buying opportunity."

Mike then pivots to the Fed meeting, noting that the central bank put rate hikes on pause for the time being. That was widely expected. However, the markets were hoping for some forward guidance. Federal Reserve Chairman Kevin Warsh continued to insist that the central bank shouldn't and won't provide hints about the future trajectory of monetary policy in normal circumstances.

Mike said the biggest news from the Fed gathering was the change in future meeting schedules.

"Warsh said the FOMC will still meet eight times a year, calling it 'the right number for the FOMC.' However, one meeting next year will focus solely on strategy, and the committee will not make a rate-setting announcement. In 2028, the FOMC will move to two strategy sessions and six rate-setting meetings."

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Mike calls market reaction to the Fed meeting "tepid."

"I guess that makes sense since the central bank didn’t really do or say anything."

Mike says it remains unclear why the Fed paused rate hikes given that CPI has been above the 2 percent target for 67 consecutive months. Some speculate it was to protect the stock market before the midterm elections.

We’ll never know if political considerations drove the decision, but there are 40 trillion good reasons to hold rates steady despite elevated price inflation.

"Of course, I’m referring to the https://www.moneymetals.com/news/2026/08/20/the-40-trillion-national-debt-in-perspective-005151";>national debt. And that’s just one part of the massive https://www.moneymetals.com/news/2025/11/15/debt-black-hole-putting-increasing-stress-on-american-consumers-004483";>debt black hole dominating the U.S. economy. Debt-riddled economies don’t function well in a high-interest-rate environment."

On the other hand, one can make a strong argument for rate hikes, given persistent inflation.

"This is https://www.moneymetals.com/news/2026/03/19/gold-the-federal-reserve-and-a-catch-22-004773";>the Catch-22 the central bank has faced for months, and there’s still no easy way out. It needs to cut rates to support the debt bubble, and it needs to raise rates to slay price inflation. It can’t do both. So, yeah, I guess a pause does make sense in this context."

Mike says the Fed may nudge rates up again in December, but its hiking runway is getting shorter by the day.

"Ultimately, the economy is going to turn. If history is any indication, when push comes to shove, the Fed will choose more easy money despite elevated inflation to support the markets and the broader economy. This is bullish for gold in the long term."

Mike wraps up the show with a quick overview of third-quarter gold demand, noting that he was surprised it remained relatively steady despite the persistent headwinds.

Noting that gold and silver are on sale, Mike ends the show with a call to action, urging listeners to call 800-800-1865 to talk with a Money Metals precious metals specialist.

Articles Mentioned During the Show

https://www.moneymetals.com/news/2024/06/18/golds-role-as-an-inflation-hedge-in-the-21st-century-003263";>Gold's Role as an Inflation Hedge in the 21st Century

https://www.moneymetals.com/news/2026/11/03/gold-demand-steady-in-q3-supported-by-etfs-and-central-banks-005341";>Gold Demand Steady in Q3 Supported By ETFs and Central Banks

https://www.moneymetals.com/news/2026/10/31/steve-penny-on-silvers-next-bull-market-gold-forecasts-and-options-trading-005334";>Steve Penny on Silver's Next Bull Market, Gold Forecast, and Options Trading

New Developments for Silver in Tech

Tue, 03 Nov 2026 00:00:00 EST

At its core, silver is a monetary metal; however, it has extensive industrial applications. Technology and industrial applications account for about 60 percent of silver’s annual demand.

Silver has the highest electrical conductivity of any metal at room temperature. It also boasts the highest thermal conductivity of any metal and has antibacterial properties.

Scientists are constantly discovering new ways to utilize silver in technical and industrial applications. The Silver Institute featured several innovations in https://silverinstitute.org/wp-content/uploads/2026/10/Silver-News-OCT2026.pdf"; target="_blank" rel="noopener">the latest edition of Silver News.

Cheaper Silver Nanoparticles

Silver nanoparticles are used in a wide range of applications, particularly in medicine and electronics. However, fabricating silver nanoparticles is costly, with commercial equipment costing thousands of dollars.

Mexican scientists may have solved that problem.

They produced silver nanoparticles using a $30 open-source microcontroller called Arduino. Computer enthusiasts use the controller to bridge the gap between software and physical hardware. Do-it-yourselfers often use Arduinos, along with a few other common components, to read inputs like motion or temperature and then turn on fans or lights in response. Arduinos also help build robotic devices.

The researchers isolated silver from silver nitrate and used Arduino-based circuitry to shape it into tiny particles that can be used in any nano-silver. These include microscopic antennas, light amplifiers, and chemical detectors. This method can produce silver nanoparticles at a much lower cost and could speed the development of silver-based products. The technique could also lower manufacturing barriers, allowing smaller, less-funded companies to deliver new products.

Silver and Medical Marijuana

Scientists in Iran have discovered a way to grow medical marijuana in traditional outdoor agricultural settings by using silver nanoparticles.

Medicinal cannabis is typically grown in expensive indoor facilities.

Scientists started with “callus cultures,” masses of undifferentiated plant cells that help the plant grow and repair. Unlike mature cannabis flowers, they don’t have certain structures like trichomes – tiny outgrowths on the surface of the plant – where cannabinoids are produced. When researchers exposed the cultures to silver nanoparticles, they found that it triggered cannabinoid production. They also found that increasing the number of silver particles boosted cannabinoid levels.

The exact mechanism remains unclear; however, scientists think the nanoparticles trigger young plants to produce THC and CBD. Both are important in medical treatments, especially CBD, which is used to treat seizures.

Silver Is Green

Many believe hydrogen is the fuel of the future. It burns cleanly and produces water vapor exhaust. However, it is expensive to produce.

A discovery by South Korean researchers may help change that.

A team at Seoul National University (SNU) said silver catalysts can help a solid oxide fuel cell generate electricity or split water to produce hydrogen.

This finding could lead to cleaner, more efficient electricity generation, and boost hydrogen's potential as an alternative fuel.

Scientists say they can manipulate the amount, size, and shape of silver nano-catalysts, and the particles act as a kind of ‘smart switch,’ telling the solid oxide cells whether to produce electricity or hydrogen.

Researchers say the discovery could benefit industry by maximizing energy device performance and reducing electricity generation costs for manufacturing and other processes. In addition, it could produce a ‘reversible’ cell offering a seamless change between producing hydrogen and electricity.

A Little Light on the Subject

Silver has been found to act as a nanoscale catalyst that reshapes silicon, making it shine when electricity is applied.

This method only requires a simple single-step etching, without the need for cleanrooms or special production protocols. In addition, because this technique uses standard silicon, it can be made at current chip-making facilities.

Researchers say consumers may benefit from the growing use of light pulses instead of electricity to carry information faster than current technology. This will also lead to longer battery life as light-carried information uses less electric power.

Better Nano-Silver for Better Solar Panels

The Central University of South Bihar (CUSB) has received a patent for a technology that produces tiny, hollow silver shells that can gather more sunlight for solar applications and may help reduce pollution.

Hollow nano-silver spheres typically require high-speed stirring to keep the material from collapsing during manufacture. This new method does not need stirring to keep its shape. This saves production costs.

It could also lead to more efficient solar panels.

The sun produces many different rays, some visible and many invisible. Engineers found they could "tune" a shell’s surface to absorb more of a specific infrared ray while allowing others to pass through. These "tuned" nano-shells can absorb and gather sunlight that would normally be wasted, while rejecting undesired rays.

Team leader Amiya Priyam said, “These tiny silver shells have special optical properties that allow them to absorb sunlight, particularly in the near-infrared range. This could make them useful in solar-energy applications and certain medical technologies.”

Gold Demand Steady in Q3 Supported By ETFs and Central Banks

Tue, 03 Nov 2026 00:00:00 EST

Gold demand was steady in the third quarter despite consistent pressure from rising interest rates and inflation worries.

Total demand in Q3 was 1,369 tonnes, a modest 1 percent decline year-on-year. That drove year-to-date demand to 3,881 tonnes, virtually identical to last year’s 3,884-tonne record through the same period.

In value terms, third-quarter demand totaled $188 billion, a 22 percent increase year-on-year. Demand value through the first three quarters came in at a record $566 billion.

Central Bank Gold Buying

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Central banks continued to support the gold market in Q3 even as prices pressured investment and jewelry demand.

Central banks globally purchased an estimated 321 tonnes of gold in the third quarter. That’s about 100 tonnes more than the five-year quarterly average of 227 tonnes.

China and Poland were the biggest gold accumulators. Russia was the biggest seller, as it https://www.moneymetals.com/news/2026/10/26/russian-gold-reserves-down-62-tonnes-this-year-as-they-support-the-wartime-economy-005318";>tapped its extensive gold reserves to support its wartime economy.

The World Gold Council confirmed 120 tonnes of reported central bank gold buying and estimated an additional 201 tonnes of unreported buying. According to the World Gold Council, “Unreported activity accounted for around 63 percent of the quarter’s demand, continuing the pattern evident since 2022.”

China likely accounts for a significant amount of unreported gold buying. As Jan Nieuwenhuijs reported, the People's Bank of China is secretly buying large amounts of gold off the books. According to https://www.moneymetals.com/news/2025/04/02/chinas-gold-reserves-going-through-the-roof-003956";>data parsed by the renowned Money Metals researcher, the Chinese central bank currently sits on more than 5,000 tonnes of monetary gold in Beijing – more than TWICE what Chinese officials publicly admit.

Year to date, central banks have purchased 675 tonnes of gold, a 6 percent increase over the same period in 2025.

The World Gold Council noted that central bank buying started the year “muted” but picked up as the gold price dipped. However, WGC analysts don’t think the falling price was the main factor driving purchases.

“Although this moderation may have supported purchases at the margin, prices remained historically elevated, suggesting that longer-term strategic considerations, such as diversification and risk management, have remained the primary driver of demand.”

Investment Demand

Total investment demand, excluding the over-the-counter (OTC) market, came in at 479 tonnes, a 14 percent decline from last year’s exceptionally strong Q3 level.

It was a tale of two sectors. ETF flows increased, even as bar and coin demand dipped.

https://www.moneymetals.com/uploads/content/bar-and-coin-demand-q3-26.png"; width="420" height="275" class="mx-auto p-3" alt="" />

Physical bar and coin demand fell by 19 percent year-on-year to 268 tonnes, a four-year low. According to the World Gold Council, many investors sat on the sidelines over the last three months as they “waited for a clearer price trend to emerge.”

Demand value held steady at $37 billion year-on-year, despite the steep volume decline.

Chinese investors continued to support the physical gold market, even as Western investors showed little interest.

Chinese bar and coin demand rose 7 percent year-on-year in Q3 to 79 tonnes. Year-to-date demand of 393 tonnes ranks as the highest on record, 11 percent above the previous high set in 2013.

Chinese physical gold demand is even more impressive in value terms. Year-to-date spending of $59 billion already exceeds every full year in the World Gold Council data series. Q3 demand alone surged by 32 percent to 11 billion.

Indian demand was muted at 55 tonnes, down 40 percent year-on-year. Higher prices were exacerbated by https://www.moneymetals.com/news/2026/05/13/india-hikes-gold-and-silver-import-duties-to-support-rupee-004917";>an increase in the gold import duty in May.

U.S. bar and coin demand fell 40 percent year-on-year to 8 tonnes. It was the weakest quarter for coin and bar demand since Q4’19.

Meanwhile, gold ETFs globally reported inflows of 211 tonnes. That drove ETF gold holdings to a record 4,256 tonnes.

In value terms, ETF gold inflows totaled $31 billion, driving total assets under management up by 9 percent quarter-on-quarter.

All three regions reported ETF gold inflows in Q3. European-listed funds led the way, adding 92 tonnes of gold to their holdings. It was the largest quarterly increase since Q1’22.

North American funds and Asian funds added 81 and 34 tonnes, respectively.

ETFs are a convenient way for investors to play the gold market, but https://youtu.be/7aP6VbgXVeM?si=O3yPeFkTYFHOXrHe"; target="_blank" rel="noopener">owning ETF shares is not the same as holding physical gold.

OTC and stock flows capture less visible elements of investment demand, along with any statistical residual from the data. World Gold Council analysts estimate OTC demand was 143 tonnes in Q3. That was 43 percent higher year-on-year, but less than half of the elevated Q2’26 level.

Jewelry Demand

Higher prices continue to create significant headwinds for the gold jewelry market.

Global gold jewelry demand fell 17 percent to 313 tonnes, the weakest third quarter in the World Gold Council’s data series dating back to 2000.

https://www.moneymetals.com/uploads/content/gold-jewelry-demand-q3-26.png"; width="447" height="204" class="mx-auto p-3" alt="" />

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It was the 13^th straight quarterly drop in gold jewelry demand.

On the bright side, gold jewelry demand was up 12 percent from last quarter, led by seasonal recovery in both Chinese and Indian demand.

It’s not so much that consumers are spurning gold jewelry. It’s just grown significantly more expensive.

In fact, spending was up $43 billion in Q3 even as volumes dipped.

That continues the 2026 trend. Through the first three quarters, jewelry demand volumes fell 19 percent to 889 tonnes, while value increased 15 percent to almost $130 billion.

Gold in Tech and Industry

Demand for gold in industry and technology applications was 84.8 tonnes, a modest 3 percent year-on-year gain.

A 5 percent increase in gold demand for use in electronics pushed overall industrial demand higher.

According to the World Gold Council, “Strong AI infrastructure investment was a growth area for gold usage, while continued thrifting and substitution in lower-value applications further limited gold use in consumer electronics.”

Gold used in other industrial and decorative applications fell 6 year-on-year. It was the 10^th consecutive quarterly decline.

According to the World Gold Council, China drove the decline due to weaker jewelry plating demand, thinner plating specifications, and the adoption of alternative materials. India reported a smaller drop as demand for gold thread used in traditional clothing dipped.

Gold used in dentistry continued its long-term decline.

What Is Fiat Money - Legal Tender Law and What Backs the U.S. Dollar - Fed Collateral, Gold Redemption History, and Pros and Cons - Money Metals

Mon, 02 Nov 2026 00:00:00 EST

Fiat money is currency that has value because a government says it does. No gold, silver, or other commodity backs it.

For several decades, the U.S. dollar has been fiat money. The Federal Reserve writes that its notes “https://www.federalreserve.gov/faqs/currency_12770.htm";>are not redeemable in gold, silver, or any other commodity.”

This guide explains what fiat money is and where the name comes from. It shows what backs the dollar today, using the Fed’s own weekly report. It also explores how the U.S. dollar became fiat money, and the disadvantages and advantages that come with that.

What Is Fiat Money?

Fiat money is currency that a government issues that is not tied to a physical good. Its value comes entirely from the law and public trust, not the material it is made of.

Three traits characterize fiat money:

A government issues it. In the U.S., the Federal Reserve issues paper notes and the U.S. Mint makes coins.
The law makes it legal tender. It counts as valid payment for debts and taxes.
You can’t trade it in for a commodity. A dollar buys goods, but no one will swap it for a set weight of gold.

Fiat Money Examples

Nearly every national currency today is fiat money. Examples include the U.S. dollar, the euro, the Japanese yen and the British pound.

With the popularization of bitcoin, some investors wonder if it qualifies as fiat currency. The answer is no. No government produces bitcoin, so it is not a fiat currency. If you’re interested in bitcoin’s relationship with gold, our guide on https://www.moneymetals.com/news/2025/03/12/why-bitcoin-is-not-equal-to-gold-003904";>why bitcoin is not the same as gold explores that question in detail.

Why Is It Called Fiat Money?

“Fiat” is a Latin word that means “https://www.etymonline.com/word/fiat";>let it be done.” In the Vulgate Bible, Genesis famously says, fiat lux, or “Let there be light.” Medieval rulers used it to open their proclamations and commands. English speakers have used the word since the 1630s. By 1750, it also meant “a decree” or “an order.”

That means that fiat money is literally money by decree. Its value starts with an order issued by the state, not a metal. https://www.merriam-webster.com/dictionary/fiat";>Merriam-Webster lists several ways to say the word, with the first being FEE-uht.

The opposite of fiat money is commodity money. That is money made of something with intrinsic value. Historically, this has often meant gold or silver coins. These are referred to as https://www.moneymetals.com/news/2023/08/17/specie-money-the-forgotten-currency-002797";>specie money, and they are the most common examples of commodity money.

Is the U.S. Dollar Fiat Money?

Yes. Federal law is what makes the dollar money. Under https://www.law.cornell.edu/uscode/text/31/5103";>31 U.S.C. 5103, U.S. coins and currency, including Federal Reserve notes, “are legal tender for all debts, public charges, taxes, and dues.”

The law does not promise metal in return. The Fed says its notes https://www.federalreserve.gov/faqs/currency_12770.htm";>have not been redeemable in gold since January 30, 1934. They have not been redeemable in silver since the 1960s. A dollar is legal tender because Congress says so. It is fiat money because you can’t turn it in for gold or silver.

What Backs the U.S. Dollar Today?

Congress requires the Fed to hold collateral equal in value to the notes it puts into circulation. https://www.federalreserve.gov/faqs/currency_12770.htm";>The Fed says this collateral is “chiefly held in the form of U.S. Treasury, federal agency, and government-sponsored enterprise securities.”

The Fed reports this collateral every week in Table 7 of its https://www.federalreserve.gov/releases/h41/current/";>H.4.1 release. Here is what stood behind Federal Reserve notes on October 14, 2026:

Collateral held against Federal Reserve notes	Amount	Share
U.S. Treasury, agency debt and mortgage-backed securities	$2.41 trillion	98.9%
Special drawing rights certificates	$15.2 billion	0.6%
Gold certificates	$11.0 billion	0.5%
Total notes that need collateral	$2.44 trillion	100%

Source: https://www.federalreserve.gov/releases/h41/current/";>Federal Reserve H.4.1, Table 7, released October 15, 2026. Shares are rounded.

In plain terms, the dollar is backed mostly by government debt. About 99 cents of every collateralized dollar is Treasury, federal agency, or mortgage-backed securities. Other collateral includes special drawing rights, a reserve asset created by the International Monetary Fund. Finally, there’s gold, which represents a sliver of the total collateral assets.

The week of October 14, 2026, the Fed had $2.84 trillion in notes outstanding. About $398 billion sat at Federal Reserve Banks. Those notes do not need collateral.

Is the U.S. Dollar Backed by Gold?

The U.S. dollar is no longer backed by gold. Gold certificates make up less than half of 1 percent of the collateral behind Federal Reserve notes. Moreover, collateral is not the same thing as a claim.

When the dollar was tied to gold under the gold standard, your bank note acted as a receipt. You could exchange it at any time for that note’s requisite weight in gold. That is what it means to have your currency backed by gold.

Now, holding a dollar gives you no right to trade it for that gold.

How Does Fiat Money Have Value?

Since you cannot redeem a dollar for gold or silver, why does a dollar buy anything? Three things answer that question:

The law. Dollars are legal tender for debts and taxes. Anyone who owes federal taxes needs these dollars.
Trust. People accept dollars because they expect others to accept them too.
Supply control. The Fed manages how much money exists. When the https://www.moneymetals.com/news/2025/06/30/money-supply-expansion-this-is-inflation-004158";>money supply grows faster than the economy, each dollar tends to buy less.

How the U.S. Moved to Fiat Money

The U.S. did not adopt a fiat system in a single step. Several things happened that gradually loosened the dollar’s ties to gold.

The first step took place in 1933. That year, President Franklin Roosevelt signed https://www.moneymetals.com/news/2024/05/15/understanding-roosevelts-1933-gold-confiscation-003194";>Executive Order 6102. That order required Americans to turn in their gold for a compensation of $20.67 per ounce. There were exemptions carved out for gold coins with numismatic value, as well as allowing people to keep $100 in gold coins.

Congress then passed the https://www.federalreservehistory.org/essays/gold-reserve-act";>Gold Reserve Act on January 30, 1934. It moved all monetary gold to the Treasury and raised the official price from $20.67 to $35 an ounce. After that, Americans could not redeem notes for gold. Silver remained in everyday use as currency until 1965. That year, the Coinage Act of 1965 ended silver’s use in most coins, with an exception for the half dollar.

The final step came in 1971, when President Richard Nixon closed the “https://www.federalreservehistory.org/essays/gold-convertibility-ends";>gold window” that allowed foreign governments to trade dollars for gold. With that connection severed, the gold standard was effectively over.

The First Fiat Money

Fiat money is far older than the dollar. Marco Polo saw it in China in the late 1200s. He described how Kublai Khan “https://historyofinformation.com/detail.php?id=243";>causes all payments on his own account to be made” in paper notes.

If any of Polo’s readers wondered how people could accept such a strange system, he gave them a clear explanation: “nobody, however important he may think himself, dares to refuse them on pain of death.”

Those two lines sum up fiat money. It is a decree from a government with the power to enforce it. Polo wrote that explanation roughly 700 years before Nixon closed the gold window.

America’s own first test came in 1690. That year, the Massachusetts Bay Colony issued paper money with no metal behind it. https://www.moneymetals.com/news/2022/02/03/americas-first-experiment-with-paper-fiat-money-002470";>It did not go well.

Commodity vs. Representative vs. Fiat Money

Money comes in three basic types.

	Commodity money	Representative money	Fiat money
Where its value comes from	The material itself	The metal it can be traded for	Law and public trust
Can you redeem it?	No need. It is the metal.	Yes, for a set amount of metal	No
Example	Gold and silver coins	U.S. gold certificates before 1933	Federal Reserve notes today

Fiat money and paper money are not the same thing. A paper note is representative money if you can trade it for metal. And most fiat money today is not paper at all. It exists as numbers in bank accounts.

The https://www.federalreserve.gov/releases/h6/current/default.htm";>M2 money supply was about $20.0 trillion in August 2026. Federal Reserve notes outstanding totaled about https://www.federalreserve.gov/releases/h41/current/";>$2.84 trillion in mid-October. Some of those sat in Fed vaults. Paper cash is only a small slice of U.S. money.

Pros and Cons of Fiat Money

Pros

The Federal Reserve Bank of St. Louis makes the case for fiat money in a short video. Under a gold standard, a bank run can drain a bank’s gold.

Economist David Andolfatto explains the fiat fix: “Under a fiat money system, the government is free to create money and to lend it out temporarily to these distressed banks.” Once people see they can get their money, he says, the panic fades.

Flexible supply. The central bank can add money during a crisis.
No mining limit. The money supply does not depend on how much gold is dug up.
Fewer bank runs. Banks can’t run out of gold, because notes don’t promise gold.

Cons

Lost buying power. The same St. Louis Fed video states the critics’ view. When more dollars enter circulation, “https://www.stlouisfed.org/timely-topics/the-gold-standard/videos/part-4-benefits-of-a-fiat-money-system";>the value of each dollar drops, driving prices up.”
It depends on trust. Its value rests on public confidence and on choices made by officials.
No hard limit. Nothing physical caps how much money can be created.

Fiat Money FAQs

Yes. Federal law makes U.S. currency legal tender for all debts and taxes. The Fed says its notes can’t be redeemed for gold, silver, or any other commodity.

It happened in two stages. Gold redemption ended at home in 1933 and 1934, during the Great Depression. Gold redemption for foreign governments ended in 1971, as inflation rose and a run on U.S. gold loomed.

No. Fiat money is issued by a government. The central pitch of bitcoin is that it is a decentralized, digital currency that is not issued or controlled by a government.

Not necessarily. Paper money can be representative money if holders can trade it for metal. Moreover, most fiat money today exists as bank balances rather than physical paper.

The opposite of fiat money is commodity money. Commodity money has intrinsic value derived from what it’s made of. Usually, that refers to the gold and silver in a coin.

The Federal Reserve. It issues Federal Reserve notes and sets monetary policy, which affects how fast money and credit grow.

The Bottom Line

Fiat money is money issued by decree. The law determines this money is legal tender. Government debt makes up nearly all the collateral behind it. Gold is less than half of one percent of its backing, and you cannot claim that gold.

In contrast, gold and silver were the heartbeat of commodity money. Their value does not depend on a decree. For more on the drawbacks of fiat money, read https://www.moneymetals.com/news/2024/05/10/what-is-fiat-money-and-why-is-it-a-problem-003181";>What Is Fiat Money and Why Is It a Problem?

Money is Communication

Mon, 02 Nov 2026 00:00:00 EST

“Prices are information wrapped inside an incentive.” ~ https://learn.mru.org/lessons/information-problem-economics-hayek"; target="_blank" rel="noopener">Alex Tabarrok, Economics PhD

Monetary systems convey information about priorities, scarcity, preferences, and trust among individuals and societies.

Money is more than a generally accepted medium of exchange. It serves not merely as the primary payment asset for any particular community, but as an unintended mechanism for communication. "Trust" in this context refers to financial transactions such as lending and buying equity stocks. The prices of financial assets communicate the level of trust a company has with its creditors.

!!--Product-Random-Featured-1--!!

Information, then, is “wrapped inside an incentive” to cooperate with those we do not know.

We can draw parallels between language and money. If you look closely, you’ll find that every time we spend or save, we are making “economic statements.”

In short, monetary systems let us communicate, to those we do not know, the world we want for those we love.

Just as words, images, and symbols allow humans to express ideas and negotiate meanings, money facilitates the “pronunciation” of economic desires and human priorities. Have you ever had a discussion about the meaning and definition of a word? It is not much different than negotiating a price.

Social institutions like family and friendship let us cooperate with those we love. What remains underappreciated is that monetary networks allow us to communicate and cooperate with those we do not know.

Our monetary transactions “speak,” helping illustrate what our priorities are.

When you buy, for example, a chicken sandwich instead of a slice of pizza, you are stating you like one economic good over the other. Therefore, the process of production must change to match your preferences and will, in fact, change because the purchase is both the signal and the incentive to change the production process.

More of our time and other resources are to be used in the production of chicken sandwiches and, therefore, more of our time and resources must be used to produce their ingredients.

First and second order effects also work in opposite directions for other goods like pizza. Less of our time and less of our other resources are to be used in the production of pizza. Thus, less of our time and less of our other resources will be used to produce pizza ingredients, or they will be redirected.

The direction and redirection of inputs (ingredients and tools) to produce different outputs (the different final goods production aims at) goes through the same exact process. Sandwich bread producers see their monetary sales increase; they use their profits to demand more dough, so more dough goes to produce extra sandwich bread, and a bit less pizza bread.

The example just above comes from an interesting 2019 event that some people might consider inconsequential. It was way more than that.

Chick-fil-A and Popeyes were both https://en.wikipedia.org/wiki/Chicken_sandwich_wars"; target="_blank" rel="noopener">heavily marketing their chicken sandwiches. With the limited data we have, we can see that competition or the event did, in fact, increase sales of chicken sandwiches many years forward. That trend seems to have nudged people to buy more chicken sandwiches than before, so the structure of the economy—our supply chains—is now more aimed and shaped towards producing those types of sandwiches than other fast-food items. All thanks to the communication and incentives provided by money, which serves as the largest and most effective social institution that facilitates cooperation with strangers.

What happens if the change of preferences and therefore the change in expenditure flows happens in another market?

Well, the same thing.

https://www.libertarianism.org/essays/mengers-principles-economics-subjects-time"; target="_blank" rel="noopener">Carl Menger, the Father of Austrian Economics, used a hypothetical example about tobacco and its production process. If people reduce their consumption of tobacco, then tobacco inputs such as land, machinery, and workers will be in less demand in the tobacco market. So that land, that machinery, and that labor will go to other lines of production, to other markets with more demand than the tobacco market.

!!--Product-Random-Featured-2--!!

A more contemporary example could be coffee. If energy drinks, green tea, and yerba mate increase in the public’s preference, the production and distribution of coffee will likely fall or slow down because some portion will be crowded out or pushed away from the caffeine consumption market by customers buying more energy drinks and, consequently, less coffee.

As sales of coffee fall or slow down, physical capital, land, workers, energy, and financial capital move to markets servicing the production processes of energy drinks, green tea, and yerba mate. As our expenditures on final goods change, those monetary units move backstream through the supply chain, attracting resources towards supply chains of final products in increasing demand and away from the supply chains of final goods under slower or contracting demand.

We now conclude that what conversations accomplish among the people we do know, money achieves it with the people we do not know. Monetary institutions allow trillions of independent decisions made by strangers to coordinate themselves into supply chains, creating a shared economic order as its unintended but outstanding byproduct.

A tool for https://www.moneymetals.com/news/2023/08/17/specie-money-the-forgotten-currency-002797";>exchange such as money, a payment asset, developed into the most extensive language we possess for communicating and providing incentives to build the world we want for those we love, with the unintended help and coordination of those we do not know.

History of Silver - Who Discovered Silver, the Tepe Sialk Evidence, and How Cupellation Works - Laurion and Athens, the Silver Standard, and Why Silver Left US Coins in 1965 - Money Metals

Mon, 02 Nov 2026 00:00:00 EST

No single person or group discovered silver and left a record of it in history. It appears in the archaeological record as early as the fourth millennium BC, with the oldest securely dated pieces coming from Tepe Sialk in Iran.

Early metalworkers learned to pull silver out of lead ore. Later, people weighed it out as money and struck it into coins. Silver paid for the fleet Athens took to war at Salamis. Nations measured their money in silver for centuries.

In the United States, silver was built into the currency from the nation’s start. The Coinage Act of 1792 ensured that silver existed alongside gold. Following a recommendation from Alexander Hamilton, the law enshrined a gold to silver ratio of 15 to 1. It remained in everyday coins until 1965. We will explore how that story unfolded in this guide, with a source behind each step of the journey.

Silver as Money: A Timeline

Date	What happened	Source
4th millennium BC	The oldest known silver objects appear at Tepe Sialk, Iran.	https://d-nb.info/1234989212/34";>Pernicka
Before coins	Silver is weighed out as money in Mesopotamia.	https://coinweek.com/origin-specie-gold-silver-became-money";>CoinWeek
6th century BC	Lydia learns to split electrum into pure gold and pure silver.	https://www.lbma.org.uk/wonders-of-gold/items/croesus-stater";>LBMA
483/2 BC	Miners strike a rich vein of silver at Laurion, near Athens.	https://2500years.culture.gov.gr/en/chapters/i-gennisi-tis-nautikis-dinamis";>Hellenic Ministry of Culture
480 BC	The new Athenian fleet helps win the Battle of Salamis.	https://britannica.com/event/Battle-of-Salamis";>Britannica
1066 to 1087	England’s pound of 240 silver pennies takes shape under William I.	https://www.royalmintmuseum.org.uk/journal/history/pounds-shillings-and-pence/";>Royal Mint Museum
1500s	Silver from Potosí, in today’s Bolivia, becomes Spanish coins.	https://www.britishmuseum.org/collection/object/C_1920-0907-382";>British Museum
1792	The US defines its dollar in silver and also authorizes gold coins.	https://www.usmint.gov/learn/history/historical-documents/coinage-act-of-april-2-1792";>US Mint
1859	Prospectors find the Comstock Lode in Nevada.	https://shpo.nv.gov/nevadas-historical-markers/historical-markers/the-comstock-lode";>Nevada SHPO
1873	Congress ends the coining of standard silver dollars from private silver.	https://en.wikipedia.org/wiki/Coinage_Act_of_1873";>Coinage Act of 1873
1900	The Gold Standard Act makes the gold dollar the US standard.	https://www2.econ.iastate.edu/classes/econ355/choi/1900mar14.html";>Act text
1935	China leaves the silver standard.	https://newbooksnetwork.com/china-and-the-end-of-global-silver-1873-1937";>Austin Dean
1965	The Coinage Act of 1965 starts clad dimes, quarters and half dollars.	https://www.govinfo.gov/content/pkg/STATUTE-79/pdf/STATUTE-79-Pg254.pdf";>P.L. 89-81
1967	Congress gives silver certificate holders one last year to trade them for silver.	https://usc-cdn.house.gov/statutes/pl/90/29.pdf";>P.L. 90-29

Who Discovered Silver?

There is no discoverer of silver that the historical record could name. No ancient records tell us about who first found it. What we know about the history of silver comes from digs, rather than written records. Even the Royal Society of Chemistry’s https://periodic-table.rsc.org/element/47/silver";>periodic table names no discoverer.

There is a good reason no name survives. Most early silver was not picked up as shiny metal. Instead, it had to be cooked out of lead ore and refined into what we would recognize as silver. So, rather than a single discovery, there was more of a discovery process.

You may see a date of 5,000 BC online. There are no digs that support such an early date. The evidence points to a much later start.

Silver is also a chemical element with the symbol Ag. People used it in ancient times, so no chemist ever “discovered” it. If you’re interested in silver’s scientific aspects, check out our guide on https://www.moneymetals.com/science";>silver as an element.

When and Where Was Silver First Made?

Silver shows up in the fourth millennium BC, sometime between 4000 and 3000 BC. https://d-nb.info/1234989212/34";>Ernst Pernicka, an expert on ancient metals, dates its first clear signs to this period.

The oldest objects seem to come from Tepe Sialk, an ancient mound in central Iran. Pernicka dates them to “the first half of the fourth millennium BC if not slightly earlier.”

Other sites show people were refining silver in the same era. Workers left behind litharge, a waste product of silver refining. It has turned up in eastern Anatolia, in today’s Turkey. It has also turned up at Habuba Kabira in northern Syria. Litharge findings from Arisman and Tepe Sialk show the same work occurred in Iran.

Gold came before silver. https://www.cambridge.org/core/journals/radiocarbon/article/ams-dating-of-the-late-copper-age-varna-cemetery-bulgaria/706A7F638D010BB6C943FBDFC1062749";>Graves at Varna, Bulgaria, hold gold objects dated to roughly 4600 BC. That is centuries before the earliest estimated date for silver. You can read more in our https://www.moneymetals.com/history/history-of-gold";>history of gold guide.

If you are looking for the oldest silver coin, the story starts thousands of years later. We cover that history in greater detail in our guide to https://www.moneymetals.com/history/oldest-coin-in-the-world";>the oldest coin in the world.

How Was Silver Discovered? Cupellation Explained

Silver came late because nature hides most of it. Pure silver “rarely forms big lumps of metal in nature,” https://d-nb.info/1234989212/34";>Pernicka notes. It mostly occurs as thin wires. Most silver sits inside lead ore instead. From ancient times until the 1700s, he writes, most silver came from silver-bearing lead ore.

Cupellation is how early metalworkers got the silver out. It works in three steps:

Smelt silver-bearing lead ore, such as galena, into lead metal.
Heat that lead with plenty of air flowing over it.
The lead and other base metals react with the air. The lead becomes litharge, a lead oxide, and the silver is left behind.

Litharge is the clue archaeologists look for. It does not form in nature, so it serves as “a secure proof of cupellation,” according to Pernicka. When it turns up at a dig, it shows silver was made there.

How Silver Became Money

Silver was money long before coins. In ancient Mesopotamia, prices were often set in shekels of silver. Buyers paid by weight, with silver “weighed out as chunks of metal,” as https://coinweek.com/origin-specie-gold-silver-became-money";>CoinWeek explains.

Coins came next. Rulers in Lydia, in today’s western Turkey, first struck coins from electrum. Electrum is a natural blend of gold and silver. Later, the metalworkers of King Croesus found a way to https://www.lbma.org.uk/wonders-of-gold/items/croesus-stater";>split electrum into pure gold and pure silver. That let Lydia strike coins of each metal. Read more in https://www.moneymetals.com/history/history-of-money";>the history of money.

Silver soon paid for more than trade. In Athens, it built one of the strongest navies of the ancient world.

Laurion and Athens: The Silver That Won Salamis

Athens owned rich silver mines at Laurion, south of the city. In 483/2 BC, miners there found “a rich vein of silver,” says https://2500years.culture.gov.gr/en/chapters/i-gennisi-tis-nautikis-dinamis";>Greece’s Ministry of Culture.

The city first planned to share the windfall among its citizens. The general Themistocles talked them out of it. https://cts.perseids.org/read/greekLit/tlg0016/tlg001/perseus-eng2/7.144.1-7.144.3";>Herodotus says he convinced Athens “to use the money to build two hundred ships.”

Another ancient text tells it a bit differently. The https://www.perseus.tufts.edu/hopper/text?doc=Perseus%3Atext%3A1999.01.0046%3Achapter%3D22%3Asection%3D7";>Constitution of the Athenians says the strike earned “a hundred talents.” According to the Constitution, the money paid for “a fleet of a hundred triremes.”

The mentions of 100 ships or 200 ships seem like a discrepancy, but there is a way both numbers can be true. Greece’s Ministry of Culture says Athens built 100 new triremes over three years. By 480 BC, it had 200 ships. That made it the largest navy in Greece.

That fleet played a major role in the Greek victory over Persia in the Battle of Salamis. The ministry says Laurion’s silver “contributed decisively” to that incredible 480 BC victory.

Athens also turned its silver into coins. Rome followed suit as it rose to power, building its money around a silver coin known as https://www.moneymetals.com/history/roman-denarius";>the Roman denarius.

The Silver Standard

Under a silver standard, a country defines its money as a set weight of silver. Coins made from that metal, known as https://www.moneymetals.com/history/what-is-specie";>specie, derive their value from their metal content.

Silver as the Measure of Money

England shows how far back the silver standard goes. Its pound began as a count of silver pennies. Under King William I, who conquered England and ruled from 1066 to 1087, silver pennies became steady in weight. The https://www.royalmintmuseum.org.uk/journal/history/pounds-shillings-and-pence/";>Royal Mint Museum traces the pound of 240 pence to that era.

Spain carried silver money around the world. In the 1500s, silver from Potosí, in today’s Bolivia, became Spanish coins like this https://www.britishmuseum.org/collection/object/C_1920-0907-382";>one in the British Museum. Learn how those coins became famous as https://www.moneymetals.com/history/pieces-of-eight";>pieces of eight.

The World Moves to Gold

In the late 1800s, many nations moved from silver to gold. The United States took a key step in 1873, a move critics later called https://www.moneymetals.com/history/crime-of-1873";>the Crime of 1873.

China held on to silver far longer. In the late 1800s, it was “the most populous country still using silver.” It “went off the silver standard in 1935,” notes historian https://newbooksnetwork.com/china-and-the-end-of-global-silver-1873-1937";>Austin Dean. He calls it “a key moment not just in Chinese history but in world history.” US silver buying played a part, as our page on https://www.moneymetals.com/history/silver-purchase-acts";>the silver purchase acts explains.

Silver in the United States, 1792 to 1900

Was the US Ever on a Silver Standard?

The United States was never on silver alone. The https://www.usmint.gov/learn/history/historical-documents/coinage-act-of-april-2-1792";>Coinage Act of 1792, also called the Mint Act, defined the dollar in silver. It also authorized gold coins and set a legal ratio between the two metals. That system, in which the dollar was built on both gold and silver, was called https://www.moneymetals.com/history/bimetallism";>bimetallism.

In 1873, Congress ended the right to bring silver to the mint and have it made into standard silver dollars. Gold holders kept that right. In practice, https://en.wikipedia.org/wiki/Coinage_Act_of_1873";>the law made gold the standard by default. You can see the full story in our guide to https://www.moneymetals.com/history/crime-of-1873";>the Crime of 1873.

Silver’s backers fought back for the next twenty years. Congress passed laws to buy silver, which we cover in our guide to the https://www.moneymetals.com/history/silver-purchase-acts";>silver purchase acts. The https://www.moneymetals.com/history/free-silver-movement";>Free Silver movement took over the Democratic Party platform with William Jennings Bryan as its leader, and it pushed hard to restore silver coinage.

The fight to restore silver ended in 1900 when the https://www2.econ.iastate.edu/classes/econ355/choi/1900mar14.html";>Gold Standard Act was passed. That law made the gold dollar “the standard unit of value.”

The Comstock Lode (1859)

Nevada’s great silver boom began in 1859 with the discovery of the Comstock Lode. https://shpo.nv.gov/nevadas-historical-markers/historical-markers/the-comstock-lode";>Nevada’s state historic marker says Virginia City boomed for about 20 years. That boom helped bring Nevada into the Union in 1864. Stories credit several different men with the find. The state’s marker names none of them.

The Coinage Act of 1965: Why Silver Left US Coins

By the 1960s, the US had a silver problem. https://www.presidency.ucsb.edu/documents/remarks-the-signing-the-coinage-act";>President Lyndon B. Johnson explained it when he signed the Coinage Act of 1965 on July 23, 1965. “Silver is a scarce material,” he explained, but silver use was “more than double new silver production each year.”

The https://www.govinfo.gov/content/pkg/STATUTE-79/pdf/STATUTE-79-Pg254.pdf";>law created a new kind of coin. Dimes, quarters, and half dollars became clad coins. These coins, which are still made today, are made of layers of metal bonded together. The old silver coins could be made for a short time only, and “in no event later than five years” after the law passed.

https://www.numismaticnews.net/archive/clad-coins-welcomed-coolly-by-collectors";>Collectors soon called the new coins “sandwich” coins because of their layers. Some still call them “Johnson sandwiches.”

Johnson also made a promise. “Our present silver coins won’t disappear and they won’t even become rarities,” he said. Today, many of those older coins trade as https://www.moneymetals.com/buy/silver/junk-silver";>junk silver. To see which coins and years contain silver, read which https://www.moneymetals.com/bullion/what-coins-are-silver";>US coins are silver.

One common mix-up: the 1965 act did not end the trade of silver certificates for silver. A https://usc-cdn.house.gov/statutes/pl/90/29.pdf";>1967 law, P.L. 90-29, did. It gave holders “one year” to trade their certificates for silver bullion. Learn more about https://www.moneymetals.com/history/silver-certificates";>silver certificates.

Silver as Money Today

Silver left everyday US coins more than half a century ago. Even so, many people still hold it as a store of value.

To see how silver has moved over time, browse our https://www.moneymetals.com/silver-price-history";>silver price history and the https://www.moneymetals.com/gold-silver-ratio";>gold-silver ratio. For one of silver’s wildest chapters, https://www.moneymetals.com/price/hunt-brothers-silver";>read about the Hunt brothers, who attempted to corner the silver market. When you are ready to add silver to your holdings, you can https://www.moneymetals.com/buy/silver";>buy silver from Money Metals.

Frequently Asked Questions

No. People worked gold first. Graves at Varna, Bulgaria, hold the world’s earliest large group of gold objects, from about 4600 BC. Silver appears in the fourth millennium BC, because most of it had to be refined from lead ore.

The oldest known silver objects come from Tepe Sialk in Iran. They date to “the first half of the fourth millennium BC if not slightly earlier,” https://d-nb.info/1234989212/34";>Pernicka writes. For the oldest silver coins, see the https://www.moneymetals.com/history/oldest-coin-in-the-world";>oldest coin in the world.

The US was never on silver alone. It used both silver and gold from 1792. It ended the free coining of silver dollars in 1873. The https://www2.econ.iastate.edu/classes/econ355/choi/1900mar14.html";>Gold Standard Act made gold the legal standard in 1900.

The https://www.govinfo.gov/content/pkg/STATUTE-79/pdf/STATUTE-79-Pg254.pdf";>Coinage Act of 1965, signed July 23, 1965, started clad coinage. To find which coins and years hold silver, see https://www.moneymetals.com/bullion/what-coins-are-silver";>which US coins are silver.

The https://shpo.nv.gov/nevadas-historical-markers/historical-markers/the-comstock-lode";>Comstock Lode was found in 1859. Virginia City boomed for about 20 years, and the boom helped Nevada become a state in 1864.

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