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<p>[QUOTE=&quot;Numbers, post: 1911046, member: 11668&quot;]That&#039;s essentially what *did* happen in the 1960s.&nbsp; As the market price of silver rose toward and then above the official level of $1.29 per ounce, people were cashing in silver certificates for silver dollars at an incredible pace.&nbsp; If you didn&#039;t want to travel to the Mint yourself, there were folks advertising to buy silver certificates at $1.50 on the dollar in FRNs.&nbsp; Some dates of silver dollars did drop tremendously in value as large quantities were released from the Treasury--the 1903-O in particular went from a four-figure price to a one-figure price. <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie100" alt=":wideyed:" unselectable="on" unselectable="on" /></p><p>&nbsp;</p><p>But, no, the value of silver bullion didn&#039;t drop.&nbsp; The Treasury hoards of silver dollars just weren&#039;t that big, compared to the size of the worldwide silver market; the market absorbed them all and kept right on rising.&nbsp; And silver dollars actually became *less* common in circulation--before the &#039;60s, they&#039;d actually circulated in the West, but they quickly became too valuable to spend.</p><p>&nbsp;</p><p>If the Treasury somehow discovered a forgotten vault of old silver dollars today and decided to use them to start redeeming silver certificates again (not gonna happen, but let&#039;s pretend), the effect would basically be the same.&nbsp; Common beat-up $1 silver certificates would suddenly be worth $15+, and certain dates of silver dollars might lose some numismatic value.&nbsp; But, even if there were enough silver dollars to redeem every old silver certificate in existence, that probably wouldn&#039;t move the global market price of silver to any significant extent.&nbsp; And the better silver certificates, like 1928C-D-E notes and large-size notes, wouldn&#039;t be cashed in anyway--their numismatic value is much greater than that of a silver dollar.&nbsp; The larger fiat-currency-based economy wouldn&#039;t even blink.[/QUOTE]</p><p><br /></p>

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