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.

RELATED TERMS
  1. Silver

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

    An exchange-traded fund that invests primarily in raw silver ...
  3. Silver Thursday

    A steep fall in the price of silver that occurred on Thursday ...
  4. Mint Ratio

    1. The price of an ounce of gold divided by the price of an ounce ...
  5. Silver Certificate

    Former legal tender (paper currency) issued by the U.S. government ...
  6. Bimetallic Standard

    A monetary system in which a government recognizes coins composed ...
Related Articles
  1. Markets

    An Introduction To Trading Silver Futures

    Silver Futures are becoming popular trading instruments. Here is a primer on how to trade them.
  2. ETFs & Mutual Funds

    SLV: iShares Silver Trust ETF

    Learn about the iShares Silver Trust, an exchange-traded fund that invests primarily in silver and is affected by risks unique to commodities.
  3. Investing

    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.
  4. Markets

    The World's Top 5 Silver Mining Companies

    Discover five top silver mining stocks for 2016, as precious metals prices appear to have bottomed out in 2015.
  5. Trading

    How To Buy Silver Options

    Buying silver options allows traders to attain a position in silver for less capital than buying physical silver or silver futures.
  6. ETFs & Mutual Funds

    The 4 Largest Silver ETFs (SLV, SIVR)

    Learn the names of the four largest silver ETFs by asset size. Discover some basic facts about each of these ETFs and what differentiates them from one another.
  7. ETFs & Mutual Funds

    (BK, SIVR, AGQ) 3 Bond ETFs in the Silver Sector

    Find out about the top ETFs that track the silver sector, such as the iShares Silver Trust ETF, ETFS Physical Silver Shares ETF and ProShares Ultra Silver ETF.
  8. ETFs & Mutual Funds

    The Top 3 Silver ETFs (SLV, SIVR)

    Like any tradable asset, silver and silver ETF prices are governed by the fundamental market economic forces of supply and demand.
  9. Trading

    Active Traders Turn Bullish on Silver (SLW, SLV)

    The charts of silver assets suggest that prices are headed higher. How are you trading the move?
  10. ETFs & Mutual Funds

    The Top 5 Silver ETFs for 2016 (SIVR, SIL)

    Check out the top five exchange-traded funds for 2016 that offer investors direct exposure to the silver market in the metals and mining sector.
RELATED FAQS
  1. What other options does an investor have to buying physical silver?

    Explore the various investment choices available for traders seeking to invest in the silver market, along with the advantages ... Read Answer >>
  2. Does Warren Buffett invest in gold? Why or why not?

    Discover what Warren Buffett's investment stance is toward gold and silver, why he likes one of them a lot and the other ... Read Answer >>
  3. What burst the Mississippi bubble?

    In 1715, France was essentially insolvent as a nation. Even though taxes were raised to extremely high levels, the hole that ... Read Answer >>
  4. What other precious metals are there beyond gold and silver?

    Discover the other, lesser-known precious metals such as platinum and palladium, which are more tied to the industrial economy ... Read Answer >>
  5. How are futures used to hedge a position?

    Futures contracts are one of the most common derivatives used to hedge risk. A futures contract is as an arrangement between ... Read Answer >>
  6. What are examples of popular companies in the metals and mining sector?

    Discover what some of the most popular companies are with investors in the metals and mining sector, specifically gold and ... Read Answer >>
Hot Definitions
  1. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  2. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  3. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  4. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  5. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
  6. Weighted Average Life - WAL

    The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, ...
Trading Center