Bimetallic History

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Gold and silver have been getting a lot of attention lately. Rising in value by 75 percent (gold) and 166 percent (silver) in one year will do that. But these recent price runs are just the latest chapter in a history that’s been intertwined with coinage from the very beginning. 

Early Coinage

When the first coins were issued in the 7th century B.C. by the kingdom of Lydia (in the western part of present-day Turkey), they actually were not gold or silver—they were made of electrum, a naturally occurring alloy of both metals. Within a century or so, separate gold and (mostly) silver coinage began to spread around the ancient world. Their continued use reflected the general idea that coins should have intrinsic value equal to, or at least approaching, face value. 

Metallic Rivalry

By the 19th century, the gold standard was generally predominant, with silver in a lesser role. But the United States used a bimetallic system with both gold and silver as standards of value. Their fluctuations caused outcomes that are familiar to numismatists: the rarity of early gold coins (due to the overvaluation of silver at the mint), the surge in silver coinage after its weight reduction in 1853 (which kept the metal value of fractional silver coins from exceeding their face value), and the issue of at-the-time unpopular Morgan dollars (in support of silver-mining interests). 

There’s even an argument that coinage standards have a literary presence in L. Frank Baum’s The Wonderful Wizard of Oz, which is often seen as an allegory for the monetary questions of the 1890s. In the book, the path of gold (the yellow brick road) is hazardous and ultimately ineffective, but silver slippers (ruby red in the movie version) bring success for Dorothy and her companions.

Around the time Baum’s book was published in 1900, “the battle of the standards” in the United States was officially resolved in favor of gold, but the victory was short-lived. During the Great Depression, the gold standard was abandoned worldwide due to its constraints on monetary policy. Silver continued to be used for circulating coins, but with growing industrial use (primarily for film photography) and rising prices, silver coinage for circulation didn’t survive the 1960s. (There is one exception: Mexico’s bimetallic 10 new pesos coins of 1992-95, introduced after prolonged inflation, had an inner ring of .925-fine silver, ¹/₆ of an ounce in total).

Gold & Silver Today

Today, gold and silver are commodities at the intersection of economics and psychology, with public interest well beyond that of other metals that are at least equally useful (iron, aluminum, or copper, for example). Gold doesn’t have many practical applications but often becomes an appealing investment in uncertain times. Silver is increasingly used in batteries, and this demand, in conjunction with supply chain issues, changing margin requirements for silver derivatives, and market speculation, led to its wild price swings in late 2025 and early 2026. 

As always, changes in precious-metal values have substantial consequences for our hobby. Coins with value primarily based on silver content—so-called “junk silver” (no offense)—have become more challenging to collect. But in other instances, prices are flattening. Gold or silver coins that might have once brought a premium over their bullion value, like somewhat scarcer dates or nicer pieces, are now more closely linked to their (increased) bullion value. Finally, the melting of silver coins, with unknown magnitude and scope, has the potential to impact availability for future collectors. 

What does the future hold for coins made from precious metals? I have no idea. But whatever happens, we can be confident that gold and silver will remain relevant. Some promising situations will become golden opportunities, some clouds will have silver linings, and, as always, gold and silver will continue to be on the minds of numismatists.

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A version of this article appears in the May 2026 issue of The Numismatist (money.org)