Mises Institute Silver: Manipulation or Fundamentals?
Nov 8, 2025
Explore the intriguing factors behind silver's low price despite its nominal highs. Structural changes like the 1960s demonetization and the shift to private hoarding play key roles. Industrial demand is evolving, with green technologies sequestering silver, and much of the metal now comes as a byproduct of other mining. Environmental regulations are impacting availability and costs. The discussion suggests that a surge in gold demand or constraints on supply could spark a price rise for silver in the future.
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Nominal Highs Mask Real Weakness
- The 2020s nominal silver highs shrink dramatically when adjusted for inflation and past real peaks.
- Mark Thornton argues this gap fuels talk of manipulation but points to deeper fundamentals instead.
Demonetization Sent Coins To Coffeepots
- Silver was widely demonetized in the 1960s, prompting people to hoard coinage outside circulation.
- Thornton recounts coins pulled from circulation into private stockpiles and coffee cans under Gresham's law.
Persistent Stockpiles Keep Prices Low
- Large private and institutional silver stockpiles persist and have dampened price for decades.
- Thornton links continued accumulation and investment demand to fears of paper currency depreciation.