Has silver become a Giffen good, the famous textbook anomaly where higher prices supposedly lead to higher demand? In this episode, Mark Thornton argues the story is compelling... but wrong. Mark explains why recent surges in silver demand amid rapidly rising prices don’t overturn the law of demand. They reflect shifting demand curves as market conditions, expectations, and classifications change. The bottom line is that silver is not a paradox: it’s a timely lesson in how markets adjust while economic laws hold.

Additional Resources

“What Are Giffen Goods? Definition, Examples, and Economic Insights” by Andrew Bloomenthal (Investopedia): https://mises.org/MI_162_A

“Did Silver Break a Fundamental Law of Demand?” Money Metals’ Weekly Market Wrap Podcast (December 10, 2025): https://mises.org/MI_162_B

“Money Costs, Prices, and Alfred Marshall“ by Murray Rothbard (Man, Economy, and State with Power and Market): https://mises.org/MI_162_C

“Notes on the History of the Giffen Paradox” by George J. Stigler (The Journal of Political Economy, April 1947): https://mises.org/MI_162_D

“Giffen Behavior: Theory and Evidence“ by Robert T. Jensen and Nolan Miller: https://mises.org/MI_162_E

“Gray and Giffen Goods” by Etsusuke Masuda and Peter Newman (The Economic Journal, December 1981): https://mises.org/MI_162_F

“Beware of Giffen-ish Vibes in the Money Market” by Tim Hartford (Financial Times, May 2025): https://mises.org/MI_162_G

“Sir Robert Giffen and the Great Potato Famine: A Discussion of the Role of a Legend in Neoclassical Economics,” by Terrence McDonough and Joseph Eisenhaur (Journal of Economic Issues, September 1995): https://mises.org/MI_162_H

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