Guide to Investing in Silver – Chapter 11: Silver Certificates

By:

Updated: Mar 5, 2019, 13:14 GMT+00:00

This is chapter number 11 out of 15. Read the rest: Read Guide to Investing in Silver – Chapter 1: IntroductionRead Guide to Investing in Silver – Chapter

Guide to Investing in Silver – Chapter 11: Silver Certificates

This is chapter number 11 out of 15. Read the rest:

This is a certificate that was previously issued by the US government as legal tender. It represented deposited silver bullions and was used as money backed by silver.

The issuance of the silver certificate was a response to protest of the gold standard which replaced the original bi-metallic monetary standard introduced by Alexander Hamilton. As a result in 1878, the Bland Allison Act was passed giving birth to silver certificates.

Each of these certificates was backed by an equivalent value in physical silver held by the US Federal Reserve. Thus, a 100 dollar certificate was matched to 100 dollars worth of silver bullions. Later, silver coins were minted by theUSgovernment. But because the silver coins were heavier, they were sidelined in preferences for certificates backed by silver.

These certificates later evolved through the years and various denominations of these silver certificates were issued based on the policies of the government in power then. Today, those certificates in good condition can be had for a reasonable price. It is only fair to expect that as time passes by; these certificates will become rarer and naturally will also increase in value. Nevertheless, it might be interesting to collect these silver certificates as a hobby; it would be a better move to collect actual silver coins as an investment.

Read Guide to Investing in Silver – Chapter 12: Comparison between various forms of Investment in Silver
Read Guide to Investing in Silver – Chapter 13: Investment in Silver versus Gold
Read Guide to Investing in Silver – Chapter 14: How to invest in Silver
Read Guide to Investing in Silver – Chapter 15: Conclusion