Loading ...Where Did All That 1934 Silver Go? A Timeline of Uses and Disposals. The acquired silver wasn’t just hoarded; it served monetary, industrial, and strategic purposes. Over the decades, it was gradually depleted through coinage, wartime lending, industrial releases, and sales. By the early 2000s, U.S. government silver stockpiles were essentially gone. Here’s the breakdown:
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1930s–1940s (Initial Uses): Much was minted into silver dollars or used to back silver certificates (paper currency redeemable in silver, helping expand the money supply). Some supported wartime efforts; e.g., during WWII, ~300 million ounces were lent to the Manhattan Project for electrical conductors in uranium enrichment (later returned). Additional silver was lent to allies under Lend-Lease (e.g., to the UK). The Act was repealed in 1946, but stockpiling continued for strategic reasons under the Strategic and Critical Materials Stockpile Act.
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1950s (Peak and Industrial Drawdowns): Treasury holdings peaked at 3.9 billion ounces (1959). Rising industrial demand (photography, electronics) led to releases; e.g., silver was sold or allocated to defense needs.
1960s (Depletion Begins): Silver prices surged due to global shortages, prompting the 1965 Coinage Act, which eliminated silver from dimes/quarters and reduced it in half-dollars (saving ~1 billion ounces over time by switching to clad coins). In 1968, 165 million ounces were transferred from the Treasury to the new Defense National Stockpile for strategic materials (stored at West Point and San Francisco Mints).
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1970s–1980s (Sales and Auctions): In 1970, 25.5 million ounces were removed from the strategic stockpile (for industrial sales), leaving 139.5 million. By 1979, silver was deemed non-essential for defense. The General Services Administration (GSA) auctioned Treasury bullion in phases (e.g., 105 million ounces authorized for disposal by 1983, leaving ~34 million). Much went to industry or investors, e.g., sales to cover coin production or stabilize markets amid the 1980 Hunt Brothers price spike.
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1990s–2000s (Final Depletion): The strategic stockpile declined steadily (e.g., to ~49 million at West Point by the late 1990s). By 2002, it was fully depleted, with remnants sold to the U.S. Mint for American Silver Eagle coins. Today, the U.S. government holds virtually no silver reserves—any remaining is negligible and for minting commemoratives.