Comments on: Silver Certificate?

By: Larry R

Larry R — Sun, 18 Jan 2009 07:23:22 +0000

First of all, it is a collector’s item. Not a huge one (5 Silver Certificates were selling for $7 on Ebay when I checked)

You might want to see if you can sell it at a coin shop.

Second like the other guy said, what it meant was that you could redeem the Silver Certificate for a set amount of Silver. You can’t do that anymore, but they are nice collectors items.

Someone probably saved one you have that forever, and either it got stolen or accidentally spent. Bills only last about a year or so in circulation, so that has been sitting in someones drawer somewhere for several decades.

By: rico3151

rico3151 — Sat, 17 Jan 2009 20:49:51 +0000

Michael, there was a world in existance long before you were born.

By: senlin

senlin — Sat, 17 Jan 2009 00:28:45 +0000

The “Silver Certificate” has a complicated history. Basically these kinds of bank notes were a response to the U.S. going to the Gold Standard to back their currency (in the late 1800s). This caused a stir amongst some of the gneral public and in Western silver mining interests who had wanted unlimited coinage of silver. As a compromise, the Treasury agreed to purchase millions of dollars in silver bullion and to begin producing silver dollar coins. As these coins were quite heavy, they also begin producing the paper dollar “silver certificates.” On demand, the silver certificates could be replaced by one dollar silver coins. This was back in the era when paper money actually represented the silver and gold on reserve with the Treasury. The Federal Reserve notes were backed by gold – the silver certificates by silver. They began to be phased out in the 1950s, as whenever they were redeemed for actual silver, they would be shredded. As well, the price of silver began to rise, so that a silver dollar coin was worth more than a dollar in silver and they were abolished in the 1960s.