An apparatus and method for the preparation and formation of a stable sub-colloidal-sized silver metal hydrosol in pure distilled water without the use of supporting or stabilizing proteins, carbohydrates, or similar types of ligands. The silver metal hydrosol is created by passing an alternating current, high-voltage arc discharge between two pure silver electrodes. The discharge arc passes from a silver wire suspended above the distilled water working fluid, first through the air, and then through the working fluid to a submerged silver plate, thereby completing the circuit. With the passage of the discharge arc through the silver wire, a quantity of the silver metal is deflagrated from the bulk surface of the metal and is vaporized into silver metal atoms, or aggregates of atoms, dispersed into the air. The vaporized silver metal atoms are rapidly quenched into separate atoms or aggregates upon making contact with the cooled working fluid.