In a time of monetary uncertainty, investors are seeking ways to diversify their portfolio. One way to do so is by investing in precious metals like gold and silver. Silver has a rich history as both an investment vehicle and a medium of exchange, and it is often used in tandem with other currencies to maintain stability.
A silver standard is a monetary system in which the value of a country’s national currency is backed by physical silver. In practice, it allows people to exchange their national currency for units of silver at a fixed rate. The system is similar to its more famous counterpart, the gold standard. Many countries have adopted the silver standard in the past, including India and China.
Before 1873, the United States had a silver standard, but the Coinage Act of that year removed it in favor of bimetallism. However, silver coins continued to be used as legal tender, and people who owned them could still turn them into cash by bringing their silver to the mint.
Until the mid-nineteenth century, most silver was minted into coins in Europe. In the United States, the silver dollar was the main form of silver currency, but silver bars and rounds were also popular in the country.
In Great Britain, a tradition developed in which any silver object was assayed to ensure that it contained the required amount of silver. This process involved sending a small sample from the article to one of the Assay Offices in London, Birmingham, Sheffield, or Edinburgh. If the article passed the assay, it was hallmarked with a stamp that indicated its maker, the Assay Office, the standard of purity, and the year of assaying.
The word “sterling” comes from the town of Easterling in eastern Germany, where fine pieces were made. By law, wrought sterling silver must contain at least 92.5 percent pure silver (known as “sterling standard”), although the other 7.5 percent can be composed of any alloy such as copper.
Silver hallmarks typically include a hallmark identifying the manufacturer, as well as a hallmark for the silver fineness. A date mark may also appear on certain silver items, such as snuff boxes or tea spoons. The date mark will identify the year of production and may be marked with the initials of the assay master or with the letter “S” for smith.
Buying and selling silver bullion requires an intimate knowledge of current market trends. For the best possible results, it is advisable to partner with an established local establishment. For example, Freedom Gold USA has a longstanding reputation for offering quality products and unparalleled customer service. Working with a reputable local silver dealer in Norfolk also means that you will be able to receive expert advice about your purchases and sales tax implications. As an added bonus, your local dealer can provide you with newsletters featuring market insights and special deals on precious metals.