Oh, don't get me wrong, I'm not making any sort of judgments about recycling your family heirlooms to feed industrial demand. None of these schemes would have a terribly substantial effect in the long term. Just pointing out that while typically this sort of thing is hilariously ineffective and rounds to zero, this specific case is very unique and people do own a market-distorting amount of silver - yes, even if it's only one in ten households with a set.

>someone could use those diamonds to make high-precision cutting equipment

Funny enough, I actually do use monocrystalline diamond tooling (not for EVs or solar panels.) I would never tell someone to sell their family jewels, and they would almost certainly get pennies on the dollar if they tried.