Buying Liberty Silver Dollars teaches about the laws of supply and demand.
The history of Seated Liberty Silver Dollars
offers a lesson in the law of supply and demand. The Liberty Dollar was minted from 1840 to 1873, and over the course of its run changes were made in U.S. law as a direct result of the rise and fall of Silver prices. U.S. Silver dollars soared in relative value after the California Gold Rush flooded the market with Gold, and it became relatively more expensive to buy Gold than to buy Silver
. Silver coins became less valuable than the $1 stamped on them after large veins of Silver were found in Nevada in 1859.
History of Silver Liberty Dollars
The Silver in Seated Liberty Silver Dollars would not be worth more than its face value again until 1964, which would cause a new run on melting down Silver coins into Silver bullion
. The worth of Silver coins is based on the Silver spot price, the base price of unfabricated Silver that can fluctuate with supply and demand for collectible coins, investment bullion, industrial uses and Silver jewelry. The price of U.S. Silver dollars
and other Silver bullion is also affected by the economy and the increasing use of Precious Metals in emerging economies. When buying the Seated Liberty Dollar, these economic factors plus the rarity of the coin all play a role in the Silver coins’ price for a perfect example of the law of supply and demand.