Real U.S. Silver Money Would Consume Nearly Half Of Total Mine Supply

The U.S. Treasury would consume nearly half of total mine supply if U.S coins contained silver.  Prior to 1965, the U.S. Mint included silver in its coinage.  The U.S. dime, quarter and half-dollar consisted of 90% silver.  However, today they are nothing more than base metal slugs.

If we look at the table below, the U.S. Mint produced 10.6 billion coins in 2013:

U.S. Mint Total Coin Mintage & Cost

The U.S. Mint shipped 1.9 billion dimes and 1.06 billion quarters in 2013.  According to the U.S. Mint Annual Report, it cost $75 million to produce these dimes and $97 million for the quarters (based on Cost of Goods), for a total of $172 million in 2013.

The next two images show how much silver was contained in each coin prior to 1965:

Roosevelt Dime Pre 1965

Washington Quarter Pre 1965

Prior to 1965, the U.S. Dime contained 0.07234 troy oz. of silver and the quarter, 0.1808 troy oz.  If we apply some simple calculations we have the following:

2013 Dimes: 1.9 billion X .07234 troy oz = 137 million oz

2013 Quarters: 1.06 billion X 0.1808 troy oz = 191 million oz

Furthermore, the U.S. Mint sold a total of 43.5 million oz of American Silver Eagles in 2013 (bullion, collectable sets & proofs).  So, if the U.S. Treasury still produced 90% silver dimes and quarters including the total sales of American Silver Eagles, the U.S. Mint would have consumed 371.5 million oz of silver in 2013.

Total 2013 U.S. Silver Consumption based on Pre 1965 Coinage

Thomson Reuters GFMS estimates that total global silver mine supply to be 814 million oz in 2013, up 27 million oz from a total 787 million oz in 2012.  There are two important take-a ways here:

1) If the U.S. Mint produced Real Money Silver Coins, it would consume 46% of total mine supply.

2) This 371.5 million oz figure of 2013 U.S. Silver Coins (based 90% silver content in dimes & quarters), there would be no silver available for investment demand

GFMS put out a Silver Market update in Nov, 2013.  From this report I estimated the total demand figures for these categories in 2013:

2013 Industrial applications = 471 million oz

2013 Jewelry & Silverware = 245 million oz

2013 Official Coins = 115 million oz

2013 Photography = 56 million oz

2013 Producing de-hedging = 35 million oz

2013 Total Demand = 922 million oz

GFMS estimated that total silver supply as follows:

2013 Mine supply = 814 million oz

2013 Scrap supply = 234 million oz

2013 Govt sales = 7 million oz

2013 Total Supply = 1,055 million oz

If we subtract total demand from supply, we get an estimated net 133 million oz (1,055 million oz supply minus 922 million oz demand = 133 million oz).  GFMS classifies this surplus as IMPLIED NET INVESTMENT.

Now, if we take the total amount of silver consumed minting dimes and quarters in 2013 (based on Pre-1965 coinage), it would equal 328 million oz.  We must remember, the American Silver Eagle sales are included in the Official Coin category by GFMS, so we must exclude it from the estimated 133 million oz silver surplus.

2013 Estimated silver surplus = 133 million oz

2013 U.S. mint consumption = 328 million oz (based minting 2013 quarters & dimes at 90% silver content)

2013 Estimated Silver Deficit = 195 million oz

So, if the U.S. Mint still produced 90% silver dimes and quarters, it would need to acquire an additional 195 million oz from above-ground silver stocks… AND THIS IS ONLY ONE COUNTRY!

Not only would the U.S. Mint need to access more silver to mint its dimes and quarters, there would be no silver available for INVESTMENT PURPOSES.  Which is the very reason gold and silver paper prices are heavily manipulated.

As I stated above, it cost the U.S. Mint $172 million to produce base metal slug Dimes and Quarters in 2013.  If these coins contained 90% silver, the cost would be a staggering $7.8 billion or 46 times the value.

Even though the world forgot the value of real money… they will soon be reacquainted.

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16 Comments on "Real U.S. Silver Money Would Consume Nearly Half Of Total Mine Supply"

  1. If the coinage would not have been debased by unbacked monetary policy, we most likely would not need as many minted YOY. The silver being “hoarded ” would also be freely circulating.

    The slugs being minted now are worth far less than they were before they were “clipped”. A silver dime would buy what a couple FRNs buy now.

    If the coins were still minted in silver, no one would use them for investment purposes. They would hold their value as is …in fact, with sound money, they should even appreciate in value even as they circulate. Deflation is only considered bad by the bankers…they lose their usury cut if the money supply doesn’t increase.

    I could be wrong, but this is how I see sound money…prices go lower as the value of money increases with more efficient production.

  2. Silver Curious | April 8, 2014 at 5:11 pm | Reply

    Ya …. but think of the demand/supply crunch if Mexico, Peru, VZ, Argentina, Bolivia, (and a few others) also returned to Silver monetary tools.

  3. “WICKED DEBT FRAUD” The one and ONLY answer to the debt problem is to declare it null and void because of FRAUD! It is fraud because it is mathematically impossible to repay ! It can not be repaid because the interest is never created on the loan and that is fraud ! And fraud voids all ! If we don’t void all out of thin air debt the bankers will own almost EVERYTHING ! And we will be homeless slaves ! They have a license to counterfeit ! Can I counterfeit the money to repay the loan ? Why not ? If we even attempt to repay a impossible debt (the national debt) all we do is show our ignorance ! The way to fix this mess is so simple a 3rd grader can figure it out ! We void the fraudulent debt! and everyone keeps ALL the items they have so called debt on ! And then we start to use a debt free currency and / or gold and silver ! And then we will have a robust economy like never before — OR WE LET THE BANKERS STEAL EVERYTHING !
    I was in about the third grade when the news was talking about the national debt and I asked my dad who do we owe money to and who could possibly be richer than the United States? and where did they get the money? And then my dad took a gulp off his beer and said we owe it to our self ! I said that’s the dumbest thing I ever heard of ! that’s like me borrowing from my right pocket and setting fire to the interest and putting the rest in my left pocket ! This was about 1972 ! But Dad was wrong! We owe it to international Bankers running the biggest Ponzi scheme on earth called The Federal reserve system! And yes it really is this simple ! The bankers have a shoe in on ALL loans they make ! All they have to do is stop lending and then start foreclosing on ALL debts!-meaning they now own everything that has a debt by having a license to counterfeit ! So we” 1″ keep getting fleeced by continuing to pay this fraudulent scheme ! OR” 2 “we declare ALL out of thin air debt NULL AND VOID because of FRAUD ! And we keep everything we have so called debt on! MOST people don’t get this part Every car, boat, house, machine, tool, farm,ect. has already been paid for by the fraudulent paper! So no one looses ! WE sure as hell cant give it to the banksters! (let them steal it) AND IT DOESENT MATTER IF YOU WANT TO REDUCE THE DEBT 99% ITS STILL UNPAYABLE! So when we void the FRAUD This will be the ultimate FRESH start for everyone ! Share this if you want THE solution to the WORLDS problems! If not everything will continue to get worse until we have HONEST DEBT FREE MONEY /and GOLD AND SILVER ! And there is plenty of gold and silver! just Divide the paper money (FRN) by the gold /silver and you have the value of them! NO MATTER WHAT IT COMES TO per OZ ! Then we would be happy to work for SAY A ONE OZ. SILVER COIN A day ! Because a one OZ. silver coin ( REAL MONEY ) will buy what $100 – $200 did before the reset! THINK ABOUT IT! This is what Scripture calls the jubilee ! “WICKED” Debt And the amount and size of the debt has nothing to do with it being mathematically impossible to pay This fraud is so “WICKED” that even a $10 loan is a Ponzi scheme here’s how it works ! I’m the new banks first customer ( CHUMP ) I borrow $10 @ 1% interest I now owe the bank $10.10 but ALL the money in the world is $10 the .10 cents doesn’t exist so some one else has to borrow some so called money and I have to find a way to get .10 cents from them so I can repay my loan ! Now say they borrowed $10 also now I somehow get .10 cents from them to pay my loan back ! But now he is short .20 cents to pay his loan ! so now you can see how a $100,000. house that will cost you $ 265,000 to pay off because you have to pay $165,000 in interest is a GIGANTIC PONZI SCHEME ! Now multiply that by millions of people in the U.S. and you can see how It turned into the monster debt we see today ! And for the loans that do get repaid multiple people have to default on there loans for you to pay off your loan ! NOW you can understand why we have a rapidly growing homeless problem ! Now that is a WICKED debt money system that we must declare Void !

  4. Silver Curious | April 8, 2014 at 5:43 pm | Reply

    The peak in wide spread Argentinian wealth/stability was when they were still using Silver money back in the 1800’s …. ever since the Argentinians were manipulated into going to paper money, their standard of living/stability has been on a slow downhill decline ever since.

  5. Us mint will never use real silver in coins.

  6. Well, that’s not going to happen, at least not with coins of a high silver content. If they made coins with eg. 0.1 / 0.2 / 0.5 / 1 / 5 grams Au or Ag content (and not with a $ face value, but the PM content of the coin) then a lot less metal would be needed to achieve the same thing. Hugo Salinas Price is in favor of such a system, but I guess (politically) a lot more has to happen (economically and financially) to get something like or similar to this. Time will tell. Interesting times. Thanks for all your work Steve.

  7. Was there ever a US silver dollar coin that had silver content weight of a US constitutional dollar?

  8. If when the guv’ment has to issue a new currency to to loss of confidence in the dollar, they don’t have the gold to back them, or silver to put in the coins.

    We can start a contest to name the new cuurency. Dollar Junior? Dollar part 2? Re-dollars?

  9. This article and its warped logic is far too simplistic. At the silver price today, approximately $20 per ounce, even without the seigniorage taken by the government (which historically was 40% to 50%), each 25 cent coin would contain far more value in metal than the current value of a quarter dollar; they would disappear as quickly as they could be minted UNLESS the paper were devalued to match the metal value in a dollars’ worth of coin. That would imply that once the coin had more purchasing power, it would also mean fewer required for circulation. If you take the current silver price at $20, and the constitutional value of a dollar as 371.25 grains (0.77 oz Troy) one quarter would be worth almost $6.50 in current FRN’s. The dollar would have to be devalued by a factor of almost 25. Add in the government’s cut and the paper dollar would be reduced to half that, or 1/50th of what it is today, and you would need about 2% of what this article claims would be used for coinage, or 6.6 million ounces, not the 328 million mentioned. Moreover, when everyone could hold silver change on a daily basis, there would be no need for 1 ounce silver eagles. This article is so full of misinformation that I could scarcely finish reading it.

    • you logic is flawed too.

      following your logic, yes, your coins would consume 6.8 million ounces of silver. so the silver content of your coins would not be as little as 1/50 of steve’s coins’. your coins’ face value is worth more than the silver content so they won’t be melt down for their silver content.

      but since the silver content is so little, these coins would still be debased along with the paper dollar, though not as much.

      so the 100% silver eagle would still be of high investment demand.

      if your proposal is adopted, there’d be another 6.8 mil ounces of silver demand.

      as a silver bug, i welcome your proposal.

      to return to silver-based currency regime, silver would be of much much higher monetary value than it was before 1960s.

      because per capita silver is 0.5 ounce, vs 5 ounces then!!

      as a silver bug , i’d welcome you to challenge me with a valid counter argument!

    • Ian,

      Actually Judejin is correct. I don’t care at all how much the Federal Reserve & Treasury have debased the currency. While I appreciate your guidance on the constitutional dollar and the amount of grains contained… I know all about the history of the Spanish Milled Dollar and its incorporation into U.S. money

      That being said, an ounce of silver buys about the same as it did when silver was included in the official currency. 6.6 million oz of silver would not get you the same value as it would today. That is what I am going by.

      Here are the mintage figures for the last year or so for 90% silver:

      1964 Roosevelt Dimes = 929,360,000
      1964 D Roosevelt Dimes = 1,357,517,180
      1964 Total Roosevelt Dimes = 2,286,877,180

      1964 Washington Quarters = 560,390,585
      1964 D Washington Quarters = 704,135,528
      1964 Total Washington Quarters = 1,264,526,113

      1963 Franklin Half Dollars = 22,164,000
      1963 D Franklin Half Dollars = 67,069,292
      1963 Total Franklin Half Dollars = 89,232,292

      Total Silver Consumed Minting 1964 Roosevelt Dimes = 165 million oz
      Total Silver Consumed Minting 1964 Washington Quarters = 229 million oz
      Total Silver Consumed Minting 1963 Franklin Half Dollars = 32 million oz

      Total Silver Consumed Minting 1964 Dimes, Quarters & 1963 Half Dollars = 426 million oz

      Now, of course the U.S. Mint produced a lot more of these coins in 1964 because it was phasing out silver from circulation, but it goes to show that the Treasury did consume this much silver in one year to produce official coins.

      That 426 million oz of silver could purchase the same value of goods as it did in 1963-1964 as it would today.

      Furthermore, the U.S. Dept of Engraving and Printing produced the following:

      1980 $1 bills = 1,939,840,000 = $1.93 billion
      1980 $100 bills = 100,480,000 = $10.04 billion

      2012 $1 bills = 2,022,400,000 = $2.02 billion
      2012 $100 bills = 3,027,200,000 = $302.7 billion

      The Dept of Engraving and Printing do not provide data on production figures going back prior to 1980. However, we can plainly see in just 32 years how much more printing and inflation went into printing the $100 bill.

      Sometimes… KISS – Keeping It Simple Stupid is a good rule. I just wanted to get across the the precious metal investors that it would still take 328 million oz of silver in 2013 mintage figures to equal the same as it was prior to 1965… when U.S. coins were real money.

      steve

      • Perhaps I didn’t make it clear as I thought. The point I was attempting to make is this: to simply make quarters in the same dimension, composition and weight as those in 1964, the PAPER dollar would have to be DEVALUED at a rate of at least 1 new to 25 current FRN (and possibly as much as 1:50 to ensure that the coinage remained in circulation).

        To use mintage figures from 1963 and 1964 is, in itself, somewhat misleading because by early 1963 it was widely known that the metal content of circulating coins was equal to face value. Dealers, collectors and investors had begun to hoard coinage as fast as it could be minted, hence the surge in demand in those last 2 years. The silver used to mint coins for 5 years 1959-1964 was in the order of 800,000,000 ounces or 163,000,000 average per year (ALL coins from dimes to dollars), and statistically even that average is skewed by the last 2 years production.

        Don’t get me wrong; I would dearly love to see silver circulating again as honest money, but bankers would see this as unforgivable heresy (they fear deflation more than being pushed off a rooftop). Unfortunately, since they are the true constituents of our politicians, don’t expect any changes until this corrupt and synthetic system totally collapses.

        Public perception would also be difficult to sway because we’ve all been conditioned for decades to believe that the ever growing digits presented on our paystub indicates some sort of meaningful gain. Very few people I’ve encountered would willingly go back to earning $3,000 to $4,000 per year even if their expenses dropped by the same ratio.

        Lastly, to set the record straight for judejin: I’ve been doggedly collecting and hoarding silver coins and bars since my first real job in 1969, so you aren’t the first or only silver bug.

  10. i keep this metric in my head.
    100 years ago, world per capita silver holdings was 5 ounces, now 0.5 ounce!

    silver is the new gold!

  11. judejin – i keep this metric in my head.
    100 years ago, world per capita silver holdings was 5 ounces, now 0.5 ounce

    Where is the stats on this?

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