A recent article describes the mechanism of Argyria. The citation is: ACS Nano 
(2012), 6(11), 9887-9899. I've copied the abstract from the article here:

ABSTRACT The widespread use of silver nanoparticles (Ag-NPs) in consumer and 
medical products provides strong motivation for a careful assessment of their 
environmental and human health risks. Recent studies have shown that Ag-NPs 
released to the natural environment undergo profound chemical transformations 
that can affect silver bioavailability, toxicity, and risk. Less is known about 
Ag-NP chemical transformations in biological systems, though the medical 
literature clearly reports that chronic silver ingestion produces argyrial 
deposits consisting of silver-, sulfur-, and selenium-containing particulate 
phases. Here we show that Ag-NPs undergo a rich set of biochemical 
transformations, including accelerated oxidative dissolution in gastric acid, 
thiol binding and exchange, photoreduction of thiol- or protein-bound silver to 
secondary zerovalent Ag-NPs, and rapid reactions between silver surfaces and 
reduced selenium species. Selenide is also observed to rapidly exchange with 
sulfide in preformed Ag2S solid phases. The combined results allow us to 
propose a conceptual model for Ag-NP transformation pathways in the human body. 
In this model, argyrial silver deposits are not translocated engineered Ag-NPs, 
but rather secondary particles formed by partial dissolution in the GI tract 
followed by ion uptake, systemic circulation as organo-Ag complexes, and 
immobilization as zerovalent Ag-NPs by photoreduction in light-affected skin 
regions. The secondary Ag-NPs then undergo detoxifying transformations into 
sulfides and further into selenides or Se/S mixed phases through exchange 
reactions. The formation of secondary particles in biological environments 
implies that Ag-NPs are not only a product of industrial nanotechnology but 
also have long been present in the human body following exposure to more 
traditional chemical forms of silver.

In short, silver, whether ionic or nanoparticles, is absorbed into the blood as 
silver ions attached mostly to proteins that contain sulfur. It is then carried 
to all parts of the body. Once there it can form nanoparticles once again upon 
exposure to light. It will also pull selenium from the blood and together 
silver and selenium are extremely insoluble, i.e. they stay there forever. 
Sunlight can photo-oxidize these particles and your skin turns gray to blue. 
Generally what I have read is it takes about 1 gram of silver accumulated in 
the body for the risk of Argyria to become high. If your body retained 100% of 
10 PPM silver, it would take 100 liters to accumulate 1 gram. However, the vast 
majority of ingested silver passes through the body, probably much more than 
90%. However, how much is absorbed and then deposited will depend upon the 
individual's body composition, diet, fluid intake, selenium levels, etc. So the 
development of argyria is not easily predicted except in extreme cases. Most of 
these are people working in industrial settings where they are exposed to high 
concentrations of silver all day.

Just as an example, if a person took 50 mL (about 2 oz) of 10 PPM silver per 
day and retained 10% of it, it would take 5 ½ years to accumulate 1 g. Probably 
it is more likely that only 1% would be retained. In this case it would take 55 
years to accumulate 1 gram and develop a risk (not a guarantee) for argyria.

In my opinion, silver, like other antibiotics, should only be used when needed, 
not as a daily tonic. Then argyria colored skin should not be a problem.

Hope this helps.

John