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. Bullion

    Gold and silver that is officially recognized as being at least ...
  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. Precious Metals

    A classification of metals that are considered to be rare and/or ...
  6. Silver

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

    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 ...
  9. 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.
  10. Forex Education

    Understanding The Spread in Retail Currency Exchange Rates

    Understanding how exchange rates are calculated and shopping around for the best rates may mitigate the effect of wide spreads in the retail forex market.

You May Also Like

Hot Definitions
  1. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  2. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  3. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  4. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  5. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
  6. Currency Carry Trade

    A strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase ...
Trading Center