Silver Standard


DEFINITION of 'Silver Standard'

A monetary system in which a country's government allows its currency to be freely converted into fixed amounts of silver, and vice versa. Under the silver standard, an exchange rate would be determined by the economic difference for a fixed amount of silver between two currencies. The use of a silver standard was widespread over centuries before being abandoned globally in the early 20th Century.

BREAKING DOWN 'Silver Standard'

The silver standard is believed to date back to ancient Greece, where silver was the first metal to be used as a measure of currency. The silver standard was subsequently adopted following the fall of the Roman empire in regions ranging from China, India, Bohemia, Great Britain and the United States. The silver standard officially came to an end when it was abandoned by China and Hong Kong in 1935, when the gold standard was adopted.

  1. Fiat Money

    Currency that a government has declared to be legal tender, but ...
  2. Phoenix Dollars

    One-ounce silver disks introduced in October 2005 by an individual ...
  3. Store Of Value

    Any form of commodity, asset, or money that has value and can ...
  4. Gold Standard

    A monetary system in which a country's government allows its ...
  5. Bretton Woods Agreement

    A landmark system for monetary and exchange rate management established ...
  6. Hard Money

    1. Funding by a government or organization that is repetitive, ...
Related Articles
  1. Fundamental Analysis

    A Silver Primer

    Find out what affects the price of silver, the types of investments that can be made and the methods in which it is traded.
  2. 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.
  3. Forex Education

    The History Of Money: From Barter To Banknotes

    Money has been a part of human history for at least 3,000 years. Learn how it evolved.
  4. Options & Futures

    Trading The Gold-Silver Ratio

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

    Have Commodities Bottomed?

    Commodity prices have been heading lower for more than four years, being the worst performing asset class of 2015 with more losses in cyclical commodities.
  6. Investing

    The Quinoa Quandary for Bolivian Farmers

    Growing global demand for quinoa has impacted Bolivian farmers' way of life. Should the American consumer be wary of buying this product?
  7. Investing News

    What Alcoa’s (AA) Breakup Means for Investors

    Alcoa plans to split into two companies. Is this a bullish catalyst for investors?
  8. Investing

    A Look at 6 Leading Female Value Investors

    In an industry still largely predominated by men, we look at 6 leading female value investors working today.
  9. Forex Fundamentals

    What Are the Best Hours to Trade the Mexican Peso?

    The best times to trade the Mexican peso are centered around economic releases, typically in the morning hours.
  10. Chart Advisor

    Trade Base Metals With These 3 ETFs

    News out of Alcoa is causing active traders to turn toward base metals for opportunities. Before diving into the market, check out the charts of these three ETFs.
  1. What other precious metals are there beyond gold and silver?

    Besides gold and silver, the other precious metals are platinum, palladium, ruthenium, rhodium, osmium, rhenium, germanium, ... Read Full Answer >>
  2. What countries have the largest gold reserves?

    The United States holds the largest stockpile of gold reserves in the world by a considerable margin. In fact, the U.S. government ... Read Full Answer >>
  3. What commodities are not tradable?

    As of February 2015, commodities that are not tradable include diamonds, tomatoes, carbon dioxide, lemons, eggs, potatoes, ... Read Full Answer >>
  4. What are the main benchmarks for tracking the performance of the metals and mining ...

    Benchmarks serve as initial points of reference against which portfolios, individual stocks or stock sectors can be compared ... Read Full Answer >>
  5. What companies are positioned to grow from the popularity of ETFs?

    Some of the companies best-positioned to benefit from the explosion in the popularity of exchange-traded funds (ETFs) are ... Read Full Answer >>
  6. Are commodities the same as consumables?

    Some commodities are consumables, but not all consumables are commodities. Commodities encompass the raw materials used to ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  2. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
  3. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
  4. Cost Of Funds

    The interest rate paid by financial institutions for the funds that they deploy in their business. The cost of funds is one ...
  5. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  6. Capitalized Cost

    An expense that is added to the cost basis of a fixed asset on a company's balance sheet. Capitalized Costs are incurred ...
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!