Silver Certificates

Silver certificates are certificates with a set value and purchased at a set amount that are redeemable for a certain amount of silver. They are an excellent way of gaining access to the silver market without having to worry about storage or damage. Fees are earned as storage maintenance cost and they act similar to mutual fund with a management fee. Certificates are redeemable for the metal itself or can be traded in the certificate market.

Those familiar of this concept of purchasing a claim to ownership of silver, may be interested in Bullion Vault which is similar. Read our BullionVault review here or click here to check them out.

Another metals certificate program is the Perthmint Investment Certificate program – http://www.perthmint.com.au/investment_certificate_faq.aspx

You can also learn about Silver ETFs (exchange traded funds) which are linked to the price of silver.

A History: United States Silver Certificates

From 1878 until the mid-1960’s, the United States produced silver certificates as part of its currency. The fourth coinage act had put the United States on a gold standard, and the country had stopped using silver as a form of currency. Whilst in production, silver certificates were redeemable for silver dollars in a bank.

Looking like modern dollar bills, for example, the $1 silver certificate was redeemable for a silver dollar. Were they exchangeable for the same silver dollar today, a $1 silver certificate would be valued at around $25, as a silver dollar has around ¾ of an ounce of silver content.

Silver certificates were produced in a variety of denominations, and had the words ‘silver certificates’ printed above the presidential portrait. In 1928, with the United States reducing the size of its currency notes, only $1 silver certificates were printed.

By 1933, with the effects of the Great Depression being felt far and wide, the United States began flooding the market with silver to replace gold. A new series 1933 $10 silver certificate was introduced, though not many made it into circulation.

Silver certificates were printed only when they were backed by physical silver in Treasury vaults. As the certificates were redeemed, and silver exchanged for them, the certificates were shredded as they lost their backing. In March 1964, the US Treasury ceased to redeem silver certificates for silver dollars, instead redeeming them for silver granules. In 1968, all redemption ceased.

Silver certificates are now collectors’ items, and their values vary widely. For example, a $1 silver certificate dated 1928 is worth around $10. The same dated certificate, but with a ‘D’ after the date is worth around $20, and the 1928E could be sold for $150. A 1933 $10 silver certificate is worth over $1500. However, if you are lucky enough to have an uncirculated 1880 $100 silver certificate, then take great care of it: its probable value is over $100,000.


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Silver Certificates


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