Silver Certificate

AAA

DEFINITION of 'Silver Certificate'

Former legal tender (paper currency) issued by the U.S. government beginning in 1878. A certificate represented a stated amount of silver bullion purchased or held by an investor. These certificates were created to allow an investor to purchase silver without having to take physical possession of the investment. Certificates were deemed payable to the bearer upon demand.

INVESTOPEDIA EXPLAINS 'Silver Certificate'

Although the U.S. stopped minting silver coins in 1806, both gold and silver coins were usable as legal tender until 1861. Today silver certificates can be redeemed for their face value in cash in the U.S. but not in actual silver.

RELATED TERMS
  1. Silver Thursday

    A steep fall in the price of silver that occurred on Thursday ...
  2. Gold Certificate

    A physical document resembling a paper bank note that entitles ...
  3. Precious Metals

    A classification of metals that are considered to be rare and/or ...
  4. Bullion

    Gold and silver that is officially recognized as being at least ...
  5. Silver

    An element commonly used in jewelry, coins, electronics and photography. ...
  6. Troy Ounce

    A unit of measure for weight that dates back to the Middle Ages. ...
Related Articles
  1. A Beginner's Guide To Precious Metals
    Options & Futures

    A Beginner's Guide To Precious Metals

  2. Options On Gold And Silver ETFs
    Options & Futures

    Options On Gold And Silver ETFs

  3. Trading Gold And Silver Futures Contracts
    Options & Futures

    Trading Gold And Silver Futures Contracts

  4. Why Gold Matters
    Options & Futures

    Why Gold Matters

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center