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. Comparable Store Sales

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

    A retail store that occupies an enormous amount of physical space ...
  3. Holding Costs

    The associated price of storing inventory or assets that remain ...
  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. Carrying Value

    An accounting measure of value, where the value of an asset or ...
Related Articles
  1. Stock Analysis

    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. Investing

    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?
  3. Savings

    Winning Retailers Amid Sales Slump

    Declining department store retail sales and the exceptions to the rule after the end of the Great Recession.
  4. Investing Basics

    The Industry Handbook: The Retailing Industry

    All businesses that sell goods and services to consumers fall under the umbrella of retailing, but there are several directions we can take from here. For starters, there are department stores, ...
  5. Investing

    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.
  6. Stock Analysis

    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.
  7. Investing

    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.
  8. Professionals

    Economics and The Time Value of Money

    Economics and The Time Value of Money
  9. Budgeting

    Convenience Stores

    These 6 expenses drain your bank account more than you give them credit for
  10. Fundamental Analysis

    Market Value Versus Book Value

    Understanding the difference between book value and market value is a simple yet fundamentally critical component to analyze a company for investment.
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 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 >>
  3. 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 >>
  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. What is the difference between carrying value and fair value?

    Learn about the carrying value and fair value of assets and liabilities, what the carrying and fair value measure and the ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center