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. Precious Metals

    A classification of metals that are considered to be rare and/or ...
  3. Gold Certificate

    A physical document resembling a paper bank note that entitles ...
  4. Troy Ounce

    A unit of measure for weight that dates back to the Middle Ages. ...
  5. Bullion

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

    An element commonly used in jewelry, coins, electronics and photography. ...
RELATED FAQS
  1. Where did the term 'pip' in currency exchange come from?

    The term pip is an acronym for percentage in point or price interest point. It measures a unit of change within a pair of ... Read Full Answer >>
  2. What is the difference between pips, points, and ticks?

    Point, tick and pip are terms used to describe price changes in the stock market and other markets. While traders and analysts ... Read Full Answer >>
  3. What are the nations with the lowest PPP (purchasing power parity) with respect to ...

    Purchasing power parity (PPP) is one of several economic indicators used to compare how much goods cost from country to country. ... Read Full Answer >>
  4. What's the difference between bid-ask spread and bid-ask bounce?

    Although both the bid-ask spread and the bid-ask bounce relate to the bid-ask price of a stock or other investment, they ... Read Full Answer >>
  5. Should I convert my telecom paper stocks to electronic records?

    If you hold paper shares of any publicly traded company, also known as certificated shares or bearer forms, you can most ... Read Full Answer >>
  6. Are Downside Tusuki Gap patterns important when trading forex pairs?

    The most heavily intertraded national currencies on forex markets are often referred to as "commodity pairs," "the majors" ... Read Full Answer >>
Related Articles
  1. Options & Futures

    A Beginner's Guide To Precious Metals

    All that glitters isn't gold. Find out how to get started on your treasure hunt.
  2. Options & Futures

    Options On Gold And Silver ETFs

    Trading the commodities can mean extra expenses. These commodity-based ETFs give you the flexibility of trading like stocks.
  3. Options & Futures

    Trading Gold And Silver Futures Contracts

    If you are a hedger or a speculator, gold and silver futures contracts offer a world of profit-making opportunities.
  4. Options & Futures

    Why Gold Matters

    Gold is a very useful investment during periods of instability and high inflation.
  5. Options & Futures

    Silver Thursday: How Two Wealthy Traders Cornered The Market

    Find out how the largest speculative attempt to corner the market went awry.
  6. Options & Futures

    Trading The Gold-Silver Ratio

    This method may seem arcane, but many well-established strategies rely on it.
  7. Economics

    Strike Gold With Junior Mining

    Learn what to watch out for to ensure your "sure thing" isn't another Bre-X.
  8. Forex Fundamentals

    Understanding the Floating Exchange Rate

    Floating exchange rate is the exchange rate between two currencies at any given time.
  9. Forex

    Understanding Currency Carry Trade

    A currency carry trade is a long-term investment strategy used primarily by large institutional investors. The purpose is to make a profit over time from differences in interest rates between ...
  10. Forex

    What Is Online Trading Academy?

    Online Trading Academy educates individuals about stocks, forex, futures and options as well as investment strategies based on the student’s trading style.

You May Also Like

Hot Definitions
  1. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  2. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  3. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
  4. Grandfathered Activities

    Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United ...
  5. Touchline

    The highest price that a buyer of a particular security is willing to pay and the lowest price at which a seller is willing ...
  6. Himalayan Option

    An exotic equity option belonging to a class known as mountain range options. Himalayan options are based on a basket of ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!