Silver Standard

AAA

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.

INVESTOPEDIA EXPLAINS '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. 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. Economics

    Which country has the most gold?

    Learn which countries hold the most in gold reserves, and explore the reasons holding gold may be beneficial to a country's economy.
  6. Chart Advisor

    Commodities Are Pulling Chile And Brazil Lower

    Strategic investors should not only keep an eye on charts of falling commodity prices, but they should also watch the impact falling commodities are having on South American nations like Chile ...
  7. Chart Advisor

    As Oil Prices Drop, Traders Look To Lumber

    While much attention is being given to declining energy prices, it may prove strategic for active traders to shift their focus to sectors like lumber that are offering better risk/reward scenarios; ...
  8. Economics

    Canadian Oil Sands: Only Lucrative At The Right Price

    Canadian oil sands projects are economically viable at oil prices above US$84.99/bbls, and they provide many benefits to the Canadian energy industry.
  9. Chart Advisor

    Strategy Based ETFs to Consider in 2015

    Let ETF managers do the work for you. These ETFs replicate investment strategies, indexes and funds attempting to outperform performance benchmarks.
  10. Options & Futures

    The Smartest Strategies For Trading Natural Gas Options

    There are multiple strategies for trading natural gas options, once you have the right data. Here we discuss the basics.

You May Also Like

Hot Definitions
  1. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  2. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  3. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  4. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  5. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  6. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
Trading Center