Silver, often called "poor man’s gold," has been recognized as a valuable metal throughout history. It is easily workable and conductive. Due to its economic value, it has been used as currency for centuries. With its increasingly diverse applications, it remains a strategic metal.

What is the History of Silver?

The earliest evidence of silver use dates back to around 3000 BC. Silver mining and craftsmanship were widespread, especially in Anatolia, Egypt, India, and China.

In Lydia, silver was used as currency alongside gold, facilitating trade significantly. This made silver a widespread currency in many countries. In medieval Europe, silver was a valuable metal that formed the basis of national currencies, accelerating economic development and reshaping world trade.

Silver continued to be used as currency in some Asian countries until the end of the 20th century. Although it lost its role as a medium of exchange with the transition to paper money, its demand for industrial use and as a store of value continues.

What are the Uses of Silver?

Silver is used in various industries, such as electronics, solar panels, medical equipment, photography, and in the production of jewelry and silverware. Investors also demand it.

According to the 2023 report by The Silver Institute, 49% of silver demand comes from industrial production, 2% from photography, 22% from jewelry and silverware production, and 27% is demanded by investors.

Why is it Called Poor Man's Gold?

Silver is a valuable metal, but several reasons explain why its price is not as high as gold's. The first historical reference to the value difference between gold and silver is from the Egyptian Pharaoh Menes, who stated that a measure of gold was equal to two and a half measures of silver.

Firstly, silver is not as durable as gold; it erodes over time. This limits its use in some areas, negatively affecting demand.

Gold has historically been a symbol of wealth and is preferred in jewellery. The lack of such symbolic value for silver makes it less sought after, which leads to its lower price.

The US Geological Survey estimates that about 61 billion ounces (1.74 million metric tons) of silver have been mined to date. According to data from The Silver Institute, 842 million ounces of silver were mined in 2023. The annual extraction is between 800-900 million ounces.

Thus, the total historical supply of silver is about nine times that of gold. The abundance of silver compared to gold is another reason for its lower price.

Conclusion

Silver holds an important place in human history and retains its significance today with its diverse applications. Although its abundance compared to gold leads to its designation as "poor man's gold," this title does not diminish the value and importance of this white metal.