Silver has always been seen as a reliable way to protect money over time. Looking at how much buying power it has from 1964 to today shows an interesting picture. It’s not that silver is getting more expensive on its own—it’s the U.S. dollar that’s losing value because of rising prices and more money being printed. We can see this clearly by checking how many ounces of silver it took to buy an average house in San Diego back then compared to now. Plus, with new uses for silver in factories and a shortage in supply, things could change even more in 2026.
Back in 1964, the average home in San Diego cost about $17,300. Silver was priced at around $1.29 per ounce. So, to buy that house, you’d need roughly 13,411 ounces of silver. That was a time when the economy was growing after World War II, and the dollar was stronger because it was tied to gold and silver. Notably, 1964 was the last year our U.S. coins were made out of silver, marking the end of an era for silver-backed currency.
Now, in January 2026, the average home in San Diego sells for around $930,000. The price of silver is about $90.88 per ounce. Doing the math, that means you need only about 10,233 ounces today—fewer than in 1964. This shows silver has kept or even gained its power to buy things like houses, while the dollar has weakened.
Why does this happen? It’s because of inflation, which is when prices for everyday things go up over time. Since 1964, the government has printed a lot more dollars to pay for things like wars, programs, and economic help during tough times. This makes each dollar worth less. For example, what cost $1 back then would cost over $10 now. Silver, being a limited resource dug from the ground, doesn’t lose value the same way. When there are more dollars around, it takes more of them to buy the same amount of silver. So, silver’s price in dollars goes up, but really, it’s the dollar going down.
This isn’t just theory—it’s real life. The U.S. stopped linking the dollar fully to gold in 1971, which let the money supply grow fast. Banks like the Federal Reserve have cut interest rates and added trillions of dollars, especially after big events like the 2008 financial crisis and the pandemic. All this waters down the dollar’s strength. Silver acts like a shield against this, holding its worth better for things that matter, like homes.
Moving into 2026, silver’s story gets even more exciting because of growing needs in factories. More than half of all silver used goes into making things, not just jewelry or coins. Demand is expected to jump from solar panels, which use silver for better electricity flow. With countries pushing for clean energy to fight climate change, solar setups could use up to 200 million ounces a year. Electric cars and gadgets like phones and computers also need silver for batteries and wires. Experts say this industrial use could grow 10-15% in 2026, thanks to government help like tax breaks for green tech.
But there’s a catch: not enough silver is being produced to meet this demand. Mines around the world are only pulling out about 813 million ounces a year, and that’s not increasing much. For years, we’ve had shortages, with 2025 seeing a gap of over 200 million ounces. In 2026, experts predict another big shortfall, maybe 150-200 million ounces, because mining for silver often comes as a side product from other metals like copper. Problems like wars, trade fights, and supply issues from places like Mexico make it worse. When demand is high and supply is low, prices can rise.
For everyday people, this means silver could be a smart way to protect savings from money losing value. You don’t need to be a big investor—just think about how it has held up over 60 years. As factories use more and supplies stay tight, 2026 might see silver shine even brighter.
In the end, silver’s journey from 1964 to now proves it’s the dollar that’s fading, not silver climbing. Needing fewer ounces for a San Diego home today shows its strength. With factories hungry for more and not enough to go around, silver remains a simple, solid choice in shaky times.
For informational purposes only. This column does not constitute investment advice. Special support provided by First National Bullion.
