Store Of Value

What is a 'Store Of Value'

Any form of commodity, asset, or money that has value and can be stored and retrieved over time. Possessing a store of value is an underlying basis for any economic system, as some medium is necessary for a store of value in order for individuals to engage in the exchange of goods and services. As long as a currency is relatively stable in its value, money (such as a dollar bill) is the most common and efficient store of value found in an economy.

BREAKING DOWN 'Store Of Value'

What is considered a store of value can be markedly different from one region of the world to another. In truth, any physical asset can be considered a store of value under the right circumstances, or when a base level of demand is believed to exist.

In most of the world's advanced economies, the local currency can be counted on as a store of value in all but the worst case scenarios. However, currency can sometimes come under attack as a store of value (such as in hyperinflation). In those instances, other stores of value have proved their consistency over time, such as gold, silver, real estate and art. The price of gold, in particular, will often skyrocket during times of national peril or when a financial shock hits the broad markets, as demand grows for other widely recognized stores of value.

While the relative value of these items will fluctuate over time, they can be counted on to retain some value in almost any scenario, especially in those cases where the store of value has a finite supply (like gold).

RELATED TERMS
  1. Base Year

    The first of a series of years in an economic or financial index. ...
  2. Comparable Store Sales

    The amount of revenue a retail location generated in the most ...
  3. Big Box Retailer

    A retail store that occupies an enormous amount of physical space ...
  4. Chain Store Sales

    An indicator that provides information on the monthly sales volumes ...
  5. Time Banking

    An alternative monetary system that bases its value on units ...
  6. Liquidation Value

    The total worth of a company's physical assets when it goes out ...
Related Articles
  1. Investing

    5 Retailers Set to Close More Stores in 2016 (FINL, GPS)

    Discover retail stores that have already announced plans to close stores in 2016. Some expect a new economic downturn, which may lead more stores to close.
  2. Markets

    The Demise of the Department Store (SHLD, M, JCP)

    According to a new report, department stores need to cut down on their physical locations to maximize their sales per square foot.
  3. Insights

    Why Target's Express Store Concept is Flourishing (TGT)

    Target has found success with its TargetExpress store concept. Why are the small-sized stores so popular?
  4. Personal Finance

    Winning Retailers Amid Sales Slump

    Declining department store retail sales and the exceptions to the rule after the end of the Great Recession.
  5. Markets

    Can Shopping Malls Survive This Trend?

    Are we coming to the end of an era for the shopping mall as we know it? If department store chains were to act on the conclusions of a recent report from Green Street Advisors, many malls might ...
  6. Markets

    Why Wal-Mart Stores Inc's Latest Closures Matter Less Than You Think (WMT)

    Wal-Mart Stores Inc closed hundreds of stores in January 2016—a move which should reassure investors, not scare them away.
  7. Markets

    3 Things I Learned From The Container Store's 10K

    Since going public at the end of 2013, The Container Store's shares have fallen by roughly half their value. But not all is not lost.
  8. Investing

    Do Store Closures Hurt Retail Stocks? (WMT,SHLD,M)

    These eight retailers are closing stores. How many have seen stock depreciation over the past year?
  9. Markets

    Openings and closings of America's favorite chains

    As we enter 2016, consumer giants Wal-Mart and Starbucks are starting the year closing and opening several locations, respectively.
  10. Markets

    Famous Chains That Began As Mom-And-Pop Stores

    Even the largest chains in the world started with a single location. Here are examples of famous brands that have humble beginnings as mom-and-pop stores.
RELATED FAQS
  1. What is the difference between economic value and market value?

    Learn about the differences between economic value and market value. Discover how they serve different purposes for businesses ... Read Answer >>
  2. What are key economic factors that can cause currency depreciation in a country?

    Read about the causes of currency devaluation, and find out how to differentiate between relative and absolute currency devaluation. Read Answer >>
  3. What can cause an asset to trade above its market value?

    Learn some of the factors that can affect the price of an investment asset and the major reasons why an asset might trade ... Read Answer >>
  4. How do investors interpret the same store sales ratio when analyzing retail stocks?

    Examine the importance of the same-store sales ratio as a key equity evaluation metric utilized by investors interested in ... Read Answer >>
  5. What is the difference between book value and market value

    Learn the differences between book value and market value, and see how investors use each type to determine if a company ... Read Answer >>
  6. Is the nominal value of a security ever also the real value?

    Learn more about nominal values and real values. Find out how these market values change and if they may ever converge for ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

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

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

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

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

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center