OPERATION: SILVER HISTORY

The Coinage Act of 1965 Remarks from President Lyndon B. Johnson

"Now, all of you know these changes are necessary for a very simple reason--silver is a scarce material. Our uses of silver are growing as our population and our economy grows. The hard fact is that silver consumption is now more than double new silver production each year. So, in the face of this worldwide shortage of silver, and our rapidly growing need for coins, the only really prudent course was to reduce our dependence upon silver for making our coins."

"If we had not done so, we would have risked chronic coin shortages in the very near future."

The NSA's Silver Recovery Program is created

"National Security Agency responded to U.S. silver shortage in the 1960s by starting the NSA Silver Recovery Program to reclaim silver from scrap and waste."

Transfer of Silver to DLA's Strategic and Critical Stockpiles

The Treasury Department executed the transfer of 165,000,000 fine troy ounces of silver to the Strategic and Critical Stockpiles under the management of the Defense Logistics Agency (DLA). This transfer, mandated by the Strategic and Critical Materials Stockpiling Act, signifies a significant milestone in ensuring national preparedness and security. The silver, sourced from Treasury reserves, was meticulously allocated to bolster the nation's critical material reserves.

In compliance with the Act, which traces its origins back to legislation passed in 1939, the Treasury Department coordinated closely with the General Services Administration to facilitate the seamless transfer of resources. This move underscores the government's proactive approach to safeguarding essential materials vital for national defense and strategic purposes.

U.S. Geological Survey

Minerals Yearbook

The Salient Silver Statistics

"U.S. Defense Department stocks totaled 8.9 million ounces."

This marks the first instance of when the Bureau of Mines disclosed the silver stock numbers by the Department of Defense.

Naval Surface Warfare Center

Electrochemistry Branch

"The power source needs of the new "brilliant" weapons will have to be satisfied by new battery technology. In addition to the stricter requirements (energy density, etc.), many of the materials currently used in batteries (such as silver, zirconium, nickel, etc.) will have to be replaced in future batteries because critical shortages are predicted if current use patterns persist."

U.S. Geological Survey

Minerals Yearbook

The Salient Silver Statistics

This marks the last time the U.S. Geological Survey (Bureau of Mines) reports the silver stock numbers by the Department of Defense. In 1995 the DOD silver stock dwindled down to 13 metric tons and by 1996, the DOD silver stock was listed as "N/A" Not Avaiilable.

U.S. Geological Survey

Minerals Yearbook

The Salient Silver Statistics

This marks the last time the U.S. Geological Survey (Bureau of Mines) reports the number of silver ounces in the National Defense Stockpile. The National Defense Stockpile goes to zero. No reports on Defense silver stocks have been released since this report in 2002.

United States Senate

Congressional Record

Support of American Silver Eagle Bullion Program Act is introduced

"It is my hope that the Senate will move expeditiously to consider and pass this legislation before the stockpile is deleted."

The US Senate addressed concerns regarding the imminent depletion of the US Government's silver stockpile, as highlighted in the Congressional Record. Senators Crapo and Reid introduced the Support of American Silver Eagle Bullion Program Act in response to these concerns, aiming to preserve the American Silver Eagle Bullion Program.

United States Government Accountability Office

Report to Congressional Committees

DOD Electronic Waste

"According to Defense Logistics Agency (DLA) officials, requisitions for silver have increased since the end of fiscal year 2015 raising some concerns about the how long the program will be able to provide this precious metal."

Department of Defense

Fiscal Year 2022 Budget Estimates

NAVY Sonobuoy Procurement

"As of FY21 AN/SSQ-101B unit cost increases as a result of a silver shortage at the Defense Logistics Agency (DLA) Precious Metal Recovery Program. Historically, the program procured silver through DLA for the AN/SSQ-101B sonobuoy variant at $3.97 per troy ounce. In FY21, DLA's surplus was exhausted. Due to the silver scarcity, program is procuring silver at market rate $30 per troy ounce. Program is pursuing mitigation strategies with vendors to replace silver requirement with a lithium battery for incorporation into the buoy in FY24."

Department of Defense

Fiscal Year 2024 Budget Estimates

NAVY Submarine Acoustic Warfare System

"MK3 increased from 115 to 120, MK 3 SLEP qtys to 80, and no MK 4 qtys in FY 2022. Quantity increases for new and SLEP MK3 units are to mitigate the MK3 inventory shortages. Realignment was required to address MK 3 and MK4 inventory shortages. This impacts unit costs and also includes Government support (ISEA, TDA), Launch Tubes (salvage), containers (CNU 488), Silver, anodes, and contract service fees."

Analysis of budget data reveals efforts to alleviate shortages of Acoustic Device, Countermeasure (ADC) units within the Submarine Acoustic Warfare System, particularly the MK3 variants. NAVSEA updates underscore the significance of ongoing production and development activities for ADC units within the Submarine Acoustic Warfare System. Notably, silver is identified as among the costs impacted by these efforts, hinting at its crucial role in production or maintenance. The need for more ADC units due to shortages suggests increased demand for silver, a crucial component in their production within the Submarine Acoustic Warfare System. Efforts to address shortages imply an insufficient supply of silver, indicating a potential silver shortage in the supply chain of the Submarine Acoustic Warfare System.

EaglePicher reveals National Security of U.S.A. in jeopardy

Blows the whistle on D.O.D. silver shortage

"MK3 increased from 115 to 120, MK 3 SLEP qtys to 80, and no MK 4 qtys in FY 2022. Quantity increases for new and SLEP MK3 units are to mitigate the MK3 inventory shortages. Realignment was required to address MK 3 and MK4 inventory shortages. This impacts unit costs and also includes Government support (ISEA, TDA), Launch Tubes (salvage), containers (CNU 488), Silver, anodes, and contract service fees."

Analysis of budget data reveals efforts to alleviate shortages of Acoustic Device, Countermeasure (ADC) units within the Submarine Acoustic Warfare System, particularly the MK3 variants. NAVSEA updates underscore the significance of ongoing production and development activities for ADC units within the Submarine Acoustic Warfare System. Notably, silver is identified as among the costs impacted by these efforts, hinting at its crucial role in production or maintenance. The need for more ADC units due to shortages suggests increased demand for silver, a crucial component in their production within the Submarine Acoustic Warfare System. Efforts to address shortages imply an insufficient supply of silver, indicating a potential silver shortage in the supply chain of the Submarine Acoustic Warfare System.