Silver has long been valued for its antibacterial properties, and has been widely used for both traditional and alternative medicinal purposes. Silver in small concentrations has been used for centuries as a disinfectant and antiseptic. Ionic silver (Ag+), when introduced in appropriate concentration, is capable of killing live bacteria. These antibacterial properties make colloidal silver, nanosilver and silver sulfadiazine useful for external wound dressing and infection control.
The importance of medicinal compounds to treat, or deter infections has increased in recent years, due to increased prevalence of antibiotic resistant bacteria. Silver is used to disinfect medical apparatus commonly installed within the body, such as catheters, cardiac devices and reconstructive prostheses and breathing tubes.
Recently, a microscopic silver suspension, called “colloidal silver” has become a fad in alternative medicine, prescribed for almost any imaginable ailment. Proof of effectiveness has never been established for ingestion of colloidal silver, although the resurgence in its use followed a similar path before 1940, when its application was largely discontinued.
No dietary need for silver has ever been established, but its medicinal use and use to retard food spoilage dates back to the early Phoenicians.
http://en.wikipedia.org/Wiki/Medical_uses_of_silver