2000 Ends - Does Cheap Silver?

The U.S. Mint Makes Prices Rise

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Coin collecting and jewelry making have a number of common characteristics. One obvious characteristic is the use of metals. So, when I heard about an article, "Silver Stockpile Nears Depletion," from the December 12, 2000 issue of Numismatic News, I was curious. Here is a summary of this article along with ideas on how this news relates to jewelry making.

The article explains how the U.S. Mint is about to receive 15 million ounces from the U.S. Defense National Stockpile. This shipment of silver will be the final shipment from this source which has been supplying the U.S. Mint with silver since the 1800s. By the 1960s, the stockpile of silver included over 165 million ounces, so the US government decided it had more than enough. Plus, it figured silver could always be purchased on the open market.

That's when this news gets interesting for those of us who use silver in our jewelry. According to this article, "the Mint has used over 120 million ounces of silver in the last 19 years…According to The Silver Institute, silver demand could rise by up to one percent annually if the Mint begins to buy silver on the open market." More than likely, the Mint will have to buy on the open market, and therefore, silver prices could increase. In fact, the Mint has approximately a year's supply of silver. So, for those of us who use silver in our jewelry, this means we should watch the price of silver closely during the next few years.

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