No, it stays in solution/suspended. If you use WAY too much, you'll have "Colloidal Silver jello shots" (wink).
Its just like using more reducing agent than you need. It doesn't fall out of solution either.
I always use a little more than I need of each for good measure but especially with the gelatine I really mean a "little" because too much will get you jello.
I don't recall exactly how much you have to use to start gelling the solution but I'm remembering something up around 1g/liter is getting there. Perhaps someone who knows the real amount could chime in.