Historical Evolution of Silver as Currency and Commodity

The historical story of silver reveals its role as a fundamental asset in times of currency trust collapse, impacting its current scarcity and rising prices.

### The Historical Context and Current Factors Behind the Rising Price of Silver
* 📜 "The historical story of silver reveals that people tend to turn to silver as the **most reliable asset** when trust in currency collapses."
* 💰 "In the past, the UK and China both used silver as a currency, with the exchange rate between gold and silver being **different in various regions**."
* 🍵 "The UK's high demand for Chinese tea led to a **significant outflow of silver to China**, with Britain resorting to **smuggling Indian goods to offset the silver shortage**."
* 💊 "China, where silver mines had low productivity, was known as the '**tomb of silver**' as once silver entered the country, it **rarely flowed out**."
* 🛠 "The Industrial Revolution in the UK created a scenario where **machines could not compete with China's vast population** in producing cotton textiles."
* 🌐 "The UK's actions to extract silver from China by selling tea and smuggling opium ultimately led to the **Opium Wars**."
* 💸 "From a monetary perspective, the rising price of silver today can be attributed to a **1% decrease in global production** due to Mexico's declaration of bankruptcy and the **significant increase in industrial demand**."
* ☀ "The demand for silver in electronic devices has risen by **20%** due to electric vehicles, and the demand related to solar energy has increased by **64%**."
* 📈 "As the demand for silver continues to outpace production, and it is challenging to **quickly increase mine output**, the price of silver has been **rising significantly**."

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The Historical Story of Silver and the Currency Evolution

The price of silver is rising along with gold due to historical trends.

Silver has been a fundamental asset in times of currency collapse, leading to a blind turn to this precious metal.

The Yuan Dynasty had a unique and somewhat modern currency system, using paper money backed by gold and silver reserves, which ultimately declined due to political corruption and financial mismanagement.

The Impact of Currency and Trade Policies on Dynasties and International Trade

Hyperinflation and lack of trust in currency reserves contributed to the fall of the Yuan Dynasty, while the Ming Dynasty's currency also struggled due to the absence of reserves, leading people to prefer silver.

The UK's high tariffs on imported tea in the 17th century led to a surge in smuggling, driven by the high demand for Chinese tea among the upper class.

This historical background sheds light on the UK's need for money for overseas expansion and the significant impact of tea trade on its economy.

The Impact of the Tea Act and the Boston Tea Party

The Tea Act of 1773 led to the East India Company monopolizing the tea trade and caused unemployment among the American smugglers, triggering the Boston Tea Party.

The British response to the protest was to reduce the tea tariff drastically, leading to increased dominance in the tea trade and a flow of silver from Britain to China.

This ultimately resulted in Britain handling 90% of the world's tea supply and a significant outflow of silver to China.

The Historical Impact of the Gold-Silver Exchange Rate

In the 16th century, China had a more favorable gold-silver exchange rate than Europe, leading to a heavy drain of silver from Europe to China for trade.

This resulted in China being known as the "tomb of silver" as the precious metal rarely left the country.

The shortage of silver in Britain due to this trade imbalance ultimately led to the colonization of India and the smuggling of goods into China.

The Impact of Historical Events on the Silver Market

The surge in tea export from China to the UK in the 1830s led to a drastic decrease in silver in China, ultimately leading to the Opium Wars.

The present rise in silver prices is driven by Mexico's decreased production and the increasing global demand, creating a significant silver shortage.

Unlike gold, the scarcity of silver is leading to a rise in prices despite confusion about its essentiality.

The Increasing Demand for Silver in Industrial Use

The modern silver demand is driven by 60% for industrial use, with a significant amount used in electronic devices.

The demand for silver in electronic devices has increased by 20% due to the rising popularity of electric cars.

Additionally, there is a high demand for silver in solar energy, which has increased by 64%, leading to shortages due to decreased production caused by a strike in Mexican mines.