THE RISE OF SILVER'S INVESTMENT IMPORTANCE

A HISTORICAL PERSPECTIVE FROM THE COLONIES TO TODAY

- R.W. JULIAN

Silver is again rising in its investment importance. Here's a look at its ups and downs through the years.

ENGLISH COLONY SILVER FROM 1652

In the early days of the English colonies, all coins were in short supply and, in most cases, urgently needed by merchants importing goods from Britain. This shortage of coined gold and silver meant that even the most wealthy of families were unable to put away a stock of precious metals to protect themselves against future misfortunes.

By 1652, the shortage of silver coins was becoming an increasing problem, especially in the Massachusetts colony. Most of the trade was required by law to be with Great Britain but the colonists also traded illegally with South America and Africa.

In 1652, Massachusetts authorities created their own silver coins to solve the silver coin shortage. This was in violation of British law which reserved that privilege to the government. However, in 1649, King Charles had been executed and the government was under the control of Puritan forces led by Oliver Cromwell.

The political leadership in Massachusetts was also Puritan, which meant the English government turned a blind eye to the Massachusetts coinage.

SILVER IN THE 1700S

In the 1700s, silver became easier to obtain for merchants and wealthier families. Much was of Spanish-American origin from the mints of Mexico City, Potosí and Lima. By the 1760s there was a sufficient supply for normal purposes.

The fighting at Lexington in 1775, which marked the opening battle of the war, sent shock waves through the colonies. Those who opposed independence, moved their portable treasures, such as gold and silver, to safer climes. The pro-independence faction realized their property was on the line and would be needed by the rebel forces fighting to achieve a new nation.