Silver Certificate Value

Silver certificate is a concept that has played a very important role in the United States economy and coinage system. It must be noted that the value does not suggest the price of a certificate that has been made with the help of actual silver metal. Silver, however, did play a very important role in the issuance of silver certificates which were printed and used widely from 1878 to 1964.

Factors to Consider while Valuating Coins

Money, a concept that abolished barter trade, has long been a valuable medium of exchange. Coins and bank notes, today are minted by all governmental and royal treasuries across the world. Industrial revolution and a fast growing set of economies brought in a sub revolution in coinage, which is known as modern legal tender money. Today, we use bank notes and coins as a legal tender money. There are three important concepts that can be used to measure the value of coins and notes:

• Legal Tender: A legal tender means that the government stamps its seal on a piece of paper and says that the scrap is worth $5. Legally, the government declares that the bank-note is worth $5 and the bearer of such a note must be paid $5 or consideration worth the same.
• Commodity Backing: To make this system of legal tender more foolproof, realistic and legitimate from economics point of view, the government and the treasury has to have a commodity or a security worth $5 in its custody. This commodity in most of cases is gold or silver. If I step into the Federal bank, and hand over a $100 bill then I can demand gold and silver worth $100.
• Market Value: This third concept is totally different from the first two. Though the government declares a specific legal tender money, and backs it with sufficient commodities, after many years of circulation, the bank-note or the coin becomes a collector's item and the legal tender value or the printed numerical $5 does not hold any meaning. The bank-note is treated as an object of trade and for collectors, a $5 note may have $10 market value.

Silver Certificate Value

The 1872 Coinage Act abolished the bimetallic banking of gold and silver that was initially established by Alexander Hamilton and replaced it with gold. Gold being scarcer than silver started draining the poorer of resources and at the same time since silver was abolished, which was in possession of thousands was rendered useless. To accelerate the problem, silver, which had been discovered by western miners, was deprived of its rightful value. Criticism and economic unrest began and in 1878, the Bland-Allison Act was passed, which forced the United States Treasury to purchase $2 million and $4 million silver from miners to turn into certificate notes. One of the earliest series that was printed was the Series 1878 of $10 to $1000, denominations. Secretary of the Treasury, C. Douglas Dillon banned the redemption of such certificates as of 1968. Though the certificate is still used it has become a collectors wanted item.

The 1935 value of certificate for $1 amounted to $1.25 to $1.50. However, non-circulated one dollar certificate which was printed from 1935 and 1957 can go as high as $3 to $4, as it would be in a better condition. The 1957 certificate has the same fate, but a lesser market value since such certificates are available in plenty. The $5 and $10 certificates have a market value 10 to 30% greater than its face value. There are some very scarce, certificates such as the 1933 $10 certificate and 1953-B $5 Silver Certificate Star Note which will have a high auction value. A similar concept is that of silver coins melt value and silver dollar coin value. The value of certificates, differ as per market demand and supply, hence if you planning upon trading it, you will have to see the current value.

If you get your hands on any kind of silver certificates then you may have struck a small fortune or you may have found a very charming collectible for yourself. You can sell the certificate at any auction, the value obtained is pretty high.