J - 162 : Where did the Roman Silver go?

Roman Alter Dedicated to Hermes at the Mines in Munigua in Spain

It is common knowledge that the Roman Empire did not collapse because of the invasion of German tribes. It was undone by inflation which ruined its economy and tax base. The Roman state spent too much. 70% of its expenditures were related to military spending. The budget shortfall prevented the Empire from paying the mercenaries it had hired. We tend to forget that since Constantine the Great, 60’000 Gothic soldiers fought for Rome. Once their sold stayed unpaid, their leaders took matters into their own hands and collect taxes them-selves. They became the Empire's “governors” and called themselves “Dux” – leaders. They never claimed the Emperor title.

Mines in the Roman Empire. Italy had almost no Silver until the Punic Wars when it acquired Spain from Carthage. These Mines were Rome's Main Silver Supplier from 200 BC - 200 AD

Today, we'd call Rome’s 5^th century bankruptcy a sovereign debt crisis. For the Roman state it happened fast. Not being able to issue debt, their treasury was empty - game over. There were well developed debt markets to finance trade and maritime investments (ships) - all private. A government debt market however never developed. Roman Emperors filled their empty treasury either with war loot (Dacia) and extortion from wealthy citizens. Also, for two centuries, successive emperors debased the silver currency to make two denarius from one. By 300 AD, a denarius (Rome's standard coin) did not contain a single gram of silver. Copper coins were bathed in silver to make them look like a denarius but everyone knew.

A Roman Denarius (4 gram of Silver) issued under Augustus

Whilst the state paid its expenses in worthless denarii, the citizens had to pay their taxes in gold. Of course, nobody had gold - taxes remained unpaid. State officials then confiscated the land of farmers with tax arrears. In antiquity, 80% of people worked in agriculture. But what do you do with untended land? Once the farmers moved to the next city where food was handed out for free? Agricultural production collapsed of course – as anybody could have predicted. – except the Roman bureaucracy. Sic erat demonstrandum.

The Roman Denarius Debasement in 3rd Century AD

This still begs the question where did all the Roman silver go which greased the wheels of the empire from 200 BC to 200 AD? In a normal economy, money circulates. People provide services or make things. They get paid in silver. 10% went as taxes to the state who then pays salaries or buys goods with the silver from taxes. The citizen also spend the silver they earn. It changes hands. Accumulates. But it does not disappear. In Rome though, it did. The Roman economy was always short of silver. Why? A look at who actually got paid may provide part of the answer. It is fair to say that only 10% of the population benefitted from economic activities. Slaves and farmers tied to their land did not. These 10% used the silver they earned for a very specific type of consumptio - I cover this a bit later.

This Roman Silver Drinking Cup from 15 BC to 15 AD

is now in the British Museum in London

Today, 50% of the world's silver is used in manufacturing. Global production reached 27’000 metric tons in 2025. Silver has several useful properties. Of all the metals, it has the highest electric conductivity. It is very reflective and can be easily worked due to its high ductility and malleability. Given its natural emission of ions, it also has antibacterial qualities. Silver is used today for electronics, solar panels, mirrors, in smart phone batteries as an electrode, as nano particles in laundry detergents and for water purification systems – to mention just a few. A further 22% is used for jewellery / tableware and about 25% as investment (silver coins and silver bars).

This small Figurine of Roman Trade Good Mercury was found

in Berthouville in France in 1830 - now in the Getty Museum

There was little industrial use for silver in antiquity. The elite 1% of Romans, the patricians, equestrians and military leaders, could afford silver chalices and tableware. They loved it for its antibacterial nature. They also used silver figurines for religious purposes. The bulk of Rome’s annual silver production of 200 tons per year (less than 1% of today’s production), went into coinage though. The Spanish silver mines, owned by the Empire, produced large quantities of silver until 200 AD when they became exhaused. Thus, the stock of silver coins should have increased every year. Except that it did not. Since silver does neither burn nor evaporate, it must have been used for something else.

Diocletian's "Fortress" Palace in Split (we visited in 2019) - What did the Emperor fear?

The lack of silver was not good for Rome. By using copper coins Roman Emperors inflated the economy for a while - then it came crashing down. The price increases were so severe that they triggered a political crisis. Emperor Diocletian had to impose draconian price controls. He also blamed the Christians and martyred them in their thousands. But to no avail. The monetary crisis was only resolved when his successor, Constantine the Great, introduced a new gold coin, the Solidus, in 312 AD. Constantine backed the new coin by gold and other treasures looted from many non-Christian temples. Christianity was a "cheap" religion with no temples - just a common dinner called "Holy Communion". His motives to become a Christian may have been quite worldly.

Roman Solidus with Emperor Constantine minted 324 AD

Back to the question, where did the silver go? I have two culprits in mind. In the absence of direct evidence, I take clues from the flow of silver during the early modern time.

• Wealthy Romans loved silk from China and spices from India. They paid fortunes for these products. The bulk of Egypt’s tax payments to Rome resulted from taxing Roman imports from Asia. Under Emperor Augustus, Egypt accounted for 80% of Roman taxes. Roman traders had few products to export. India and China wanted silver, a metal rare in Asia. Only under Emperor Justinian could Rome finally address this trade in-balance when monks smuggled silkworms and mulberry seeds from China. Without further ado, Justinian set up a state-owned silk industry in Asia Minor - ... and made a fortune.

• Silver was rarer in Asia than in Europe. This was reflected in the exchange ratio of gold to silver. In Europe the rate was 1 unit to 10. In Asia it dropped to 1 unit to 8. A perfect arbitrage for Roman traders. Ship silver to India. Exchange it for gold. Bring the gold to the Mediterranean. Exchange it for silver. Portugese mariners did this trade, but it is barely documented. Found no evidence for Roman times. Humans are geniuses though. Am sure they figured out how to do this “buy low - sell high” trade and arbitrage global silver prices

A Page from Pliny the Elder's Natural History

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Occasionally, a prominent writer and philosoph complained about the massive flow of silver to the east. Pliny the Elder (23 – 79 AD) described Rome’s trade deficit with Asia in his book “Natural History”. He believed that the Empire lost every year 50 million sesterces or 55 tons of silver to Asia. This would amount to ¼ of the total annual production. Quite a number but not enough. Am sure though that the real number was higher than the 55 tons.

The only other remaining explanation is that people hid their silver once debasement actually begun. It would not be the first time in history. Many hidden caches with Roman coins have been found in the past. Albeit not enough to explain where all the silver went. The question remains unanswered to this day. My inclination is that the silver went to Asia.