Silver – Over One Billion Served.

Hundreds of years ago the Chinese people used silver coins as currency. While you may not find this surprising, let me let you in on a little currency history. The key word in my first sentence is "people". Notice I didn’t use the word "Government" or "Dynasty" or even the adjective "wealthy" next to the word Chinese to describe those that owned silver. I’ll explain. The Chinese have a very long and rich culture and heritage, and over the decades and centuries the people of China saw Emperors, Dynasties, Rulers, and wars come and go, begin and end. Along with the Emperors, Dynasties and wars came different forms of currencies, payments, and notes. Older generations passed the lessons learned to the younger generations, and thus for Hundreds of years the people of China chose to trade and save in silver rather than trust the multiple coins, spades, and knives made from tin, iron, lead, and clay that made up the bulk of "legal tender". This is more than just a footnote in history; there are lessons to be learned here.

The ability to produce large amounts of currency, or "Quantitative Easing" has always been desired by governments. Leaders understand that people inherently desire to have at least as much as the next person, if not maybe just a little bit more. By being able to quickly create more money and put it in circulation, the government in force tricks the people into believing they are wealthier than before, even though there is no more rice in the cupboard or cows in the pasture than there was before the currency was created. In these simple times it was clearer for the average farmer or peasant to recognize the de-valuing of his currency, and they responded by choosing not to use it.

Some of the earliest Chinese currency consisted of cowry shells, bones, and rocks, but the units of trade evolved as there was truly no real use for these items. Then came spades and knives made of varying metal alloys and sizes, however these spades and knives were far too delicate for any work and often had the value associated with the piece derived from markings on the blade or handle. The money had a form but no true function, and the value and craftsmanship varied widely and from town to town. For this reason quite often people chose to trade in real spades and knives, since work and production could actually be accomplished at a greater rate with functioning hand tools. Some coins of the time were produced so thin that they often broke in your hand, and quite often coins were strung together a thousand at a time through a square hole in the middle of the coin to create a unit of trade with enough value for actual use.

Silver on the other hand offered several benefits. Silver was more rare than the tin and lead coins and much more difficult to produce in quantity, therefore it held its value better and people tended to save their silver and trade away their less stable notes and currencies. The Chinese people traded amongst themselves silver ingots with comparable weights, but these ingots were not produced or marked by the Government, they were a true peoples’ currency – by the people for the people. Also by now Silver was also being used in international trade and was more desirable for making large payments that had to be transported long distances. Those in power knew that the citizens were hoarding silver and using it as a preferred currency, and in 1423 taxes became due and payable in silver even though Chinese Government was not yet even minting silver coins!

If we fast forward to today we find that China is the largest refiner of silver in the world. Chinese Citizens still collect and save in ornate silver pieces, and the Chinese Government encourages the people of China to hold physical gold and silver to protect themselves from inflation and worldwide fiat currencies (currencies backed by nothing). After all, the Chinese had fiat currencies as early as 950 A.D. which had experienced hyperinflation and collapsed again and again – so they have some experience to go by. If you don’t have your own history or ancestors to steer you straight on this matter, perhaps take this piece of history to heart – it may be the most valuable "made in China" product you ever come across.