Ok time to do a presentation. There is roughly 1.743 billion pounds of silver in known existance in the world. This includes family silverware, Royal items, wedding rings and the likes.

There is a net of 1.29 trillion in US currency, though only 50 billion is in the form of money we are familiar with.

There is 16 normal ounces or 12 troy ounces per pound.

The true value, if we seized all of the silver and then made it currency, would indeed be Funny for it would not be a troy gram per dollar but a smaller portion. The move would of course increase the value even more (no reserves for anything else). So in theory a troy ounce could end up being worth between $5 to $10. That makes some of you drool right now of course...

But let us examine the true ramifications of silver

Besides the ease which a government or dangerous entity can make silver grams into RIF devices (thus tracking the US currency, and it is cause how easy silver can conduct and adances in tech) there is also weight issues. You see silver in pure form is 'soft'. If mixed with othr metls then the more problems exist.

But let us cover soft first... each handling with wear some silver away... heck that happens with our current coins. But at $8 a troy ounce this is an issue. Now did that $80 coin suffer legit wear or is someone taking 1% for every coin so they can make a fortune in 'new silver' per year? And yes this was done to silver and gold, known as shaving a coin... it can be done far more efficiently with modern equipment now. Then what if we mix it with another metal. Modern thieves could easily replace portions of a lighter metal with aluminum (to bulk it up) and lead (to add weight). I suspect 50% of silver in a coin could be removed if you were careful, but maybe this will be 25% initially.

So this is a theives dream cause if you are caught holding the bag your going to suffer for it.

But let us continue with the lesson, by all means!

Silver is common enough if the value goes up it could be doubled... though to act as if most of that is in the US would make me laugh. To destroy the economy of the United States would cost 100 billion dollars, roughly, at that point. Just buy excess silver, then dump it in the hands of of a few select communists. They would be in a small region and culd buy up all commodities for a while, flushing the small region with silver.

So using silver as the actual currency is out... most would agree at this point.

So thats where those who believe in Silver and Gold backed currency is important. Only problem... remember there is 1.2 trillion in US currency and if we back part of it with silver we have to back it all. Now a gram is worth insane amounts. But as a world commodity that is drilled...  and with nations able to dig up billions on demand... they now have the value of the US currency, or 1/3 our GDP in 2 years, split amongst say 18 nations. Their buying spree, our super inflation, and the loss of value of our currency would devestate us. Were talking a destabilization greater than the Zimbabwe disaster if they truly wanted it to be.

This assumes of course we seized the entire world supply of silver as it stands. However I doubt we get 25% of the initial piles which makes it far easier for a hostile nation, or pact of nations *cough*OPEC*cough* to crash our economy while profiting on doing so.

You see this is a personalized economics lesson from me.

Currency, in the current form, is only (except fraud, which is negligable in the grand scheme) produced by the nation (or nations in EU example) in question. Where gold, silver, ores in general can be mined. In fact they exist in current forms as well, though maybe not so much as reserves in total are. Manipulating via mining would be easy, the economy would always be in danger. I may hate much of liberal policy and implemented plans but disvestment from gold backed currency is one I do not disagree with.

http://demonocracy.info/infographics/wo … ilver.html