The U.S. Mint Used 550 Million Ounces of Silver in 1964 To Produce Coins for Every Day Use

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Smaulgld
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The U.S. Mint Used 550 Million Ounces of Silver in 1964 To Produce Coins for Every Day Use

In 1964 the United States Mint used the equivalent of 67% of today’s total silver mining production to mint dimes, quarters and half dollars for every day use.

In 1964, the U.S. Mint used 549,549,066 ounces of silver to make dimes, quarters and half dollars for every day use.*

In 2013, the U.S. Mint used 43.475 million ounces of silver** to mint and sell silver coins for investment purposes (vs. the 549.5 million ounces of silver the U.S. Mint used to produce dimes, quarters and half dollars to place in circulation for everyday use).

Charts and more data: http://smaulgld.com/amount-silver-used-u-s-coins-1964/

Edited by admin on 11/08/2014 - 06:08

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HappyNow
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Hey that's one heck of a

Hey that's one heck of a factoid.  What  do you make of it Smaulgld?

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Smaulgld
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Happy Now

I put together the data to see how much silver was once used to produce US coins. 1964 was the last year of prodution and the largest. At the time, if you read the foot note in the original post, the US had massive silver reserves. In 1942 they had something like 6 billion ounces of silver. The US has NONE now.

Also compare the record year of silver sales last year of over 40 million ounces at the US mint to the 550 million ounces used in 64/65!

Lyndon Johnson Whopper from the original post: "If anybody has any idea of hoarding our silver coins, let me say this. Treasury has a lot of silver on hand, and it can be, and it will be used to keep the price of silver in line with its value in our present silver coin. There will be no profit in holding them out of circulation for the value of their silver content.”
 

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HappyNow
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OK so at one time the US held

OK so at one time the US held enough silver in reserve to manipulate the market and threatened to use it.  But that didn't work.  Within 15 years the coins were selling at a premium to face value and the US government was effectively out of the silver business.   They coins they mint now sell for the value of the metal not the face value of the coin.

Lyndon Johnson was incredibly wrong.  Although interesting as a story of perhaps how politicians mislead or about a government's inability to control I am not sure how this affects us here and now, today.

Are you suggesting that the silver market is not and cannot be manipulated  other than for a relatively short period of time?

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Smaulgld
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you raise interesting points and inferences

I wasn't making any particular claims rather stating some pretty stark facts.  The US used to have a massive amount of silver and once used it in massive amounts to produce coins for circulation. The amounts that we think of today as "record" at the US mint are tiny.

So it highlights that perhaps there isnt as much physical silver around today as there once was.

Your point it well taken that johnson attempted to manipulate the silver market by flooding it and talking it down and it didn't work-eventually you run out of silver.

Today they have managed to overcome the obstacle of not having physical silver by selling paper shorts

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Except LBJ forgot one thing

Treasury has a lot of silver on hand, and it can be, and it will be used to keep the price of silver in line with its value in our present silver coin.

LBJ forgot that there were a lot of Silver Certificates issued, and the Treasury's silver holdings were subject to redemption by Silver Certificates.

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Redemption of silver certificates

From wikipedia

"In the nearly three decades since passage of the Silver Purchase Act of 1934, the annual demand for silver bullion rose steadily from roughly 11 million ounces (1933) to 110 million ounces (1962).[39] The Acts of 1939 and 1946 established floor prices for silver of 71 cents and 90.5 cents (respectively) per ounce.[39] Predicated by an anticipated shortage of silver bullion,[40][41] Public Law 88-36 (PL88-36) was enacted on 4 June 1963 which repealed the Silver Purchase Act of 1934, and the Acts of 6 July 1939 and 31 July 1946,[42] while providing specific instruction regarding the disposition of silver held as reserves against issued certificates and the price at which silver may be sold. [nb 5] It also amended the Federal Reserve Act to authorize the issue of lower denomination notes (i.e., $1 and $2),[42] allowing for the gradual retirement (or swapping out process) of $1 silver certificates and releasing silver bullion from reserve.[41] In repealing the earlier laws, PL88-36 also repealed the authority of the Secretary of the Treasury to control the issue of silver certificates. By issuing Executive Order 11110, President John F. Kennedy was able to continue the Secretary’s authority.[43] While retaining their status as legal tender, the silver certificate had effectively been retired from use.[33]

In March 1964, Secretary of the Treasury C. Douglas Dillon halted redemption of silver certificates for coined silver dollars; during the following four years, silver certificates were redeemable in uncoined silver "granules."[40] All redemption in silver ceased on 24 June 1968.[1] "

http://en.wikipedia.org/wiki/Silver_certificate_%28United_States%29

Smaulgld
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correct, I don't think they stopped paying on those

for a few years after.

But EXPLICIT in Johnson's statement was they would use the governments silver hoard to manipulate the price of silver lower

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Smaulgld
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thanks erewenguy

the value of those silver certificates  went up I would suppose from 1964-1968. I got one once in change. I think you can buy them for about $10 as collectors items

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This thread plays into the

This thread plays into the same dynamic as Sprott asking "where's the supply [of silver] coming from?" as investment demand continues to create new coin sale records YOY. Which is not a bad thing, it's an excellent question. But you have to understand this is a lot like playing poker -as a player you only know (for sure) your own hand and can reasonably guess what's in the deck (sorta) and the other guy's hand (barely) by what's already been played. And the longer you play, the deeper you get into the shoe, the better your available information. But it's always 'partial' at best. Meanwhile the other guy is playing very close to the vest, he's been playing a lot longer than you (better idea of what's in the deck and your hand) from the same shoe, but more importantly...he's also the House. Players beat the House all the time, but the odds at any given sitting...not favorable. We won't know when the last 'old' vault ounce is sold for re-melt until after it happens. And we'll never know "where's the supply coming from?"

WTF can you do? I think it's pretty basic -go with your gut instinct after careful analysis of as much good information as you can gather and don't paint yourself into a corner. In other words, by not over-investing at 50, 40, 30, (even) 20, you can look forward to 15 and 12 (??) as better prudent buys. Let the other guy figure out how to load the shoe with all those cards! And if it turns out you're already holding the best hand and 18 is it, soon prices do a double, followed by a triple on insufficient (additional) supply in the face of overwhelming demand...what me worry? Eh??

And to stretch the analogy a bit farther...you have to be dealt in to play. Can't win if you don't play. So if you've no ounces and are waiting for 15 or 12 to take your first deal, just may not happen, game can end at any time when the House closes up shop. If this is your game, might want to play a few light hands now, even if they turn out to be lousy in hindsight.

re: Johnson...he was just telegraphing how good the government's hand was. Turns out it was a bluff. I don't see the value in trying to work it out further.

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