Buying silver is a way to invest in a precious metal without having to spend the amount required to invest in gold or platinum. However, not all investors have the space to store bars of silver within the home. An alternative way to invest in silver without having to own the metal is to buy silver certificates.
These certificates were issued by the United States government between the years of 1878 and 1964. They were a representative form of money initially redeemable with the same face value of silver dollar coins, then raw silver bullion. Currently, they are redeemable in Federal Reserve Notes and are therefore considered obsolete, but they still serve as valid tender. These certificates have different color seals and serial numbers based on their period of issue.
The only country that currently issues government-backed silver certificates is Australia. This investment in silver is insured by Lloyds of London and protected by the Australian government. The Perth Mint Certificate Program requires an investment of USD 10,000 to open an account. Account holders receive a certificate confirming their purchase and giving them legal title to a portion of the precious metals held by the Mint.
Investors may select either bars or legal tender coins as the form of investment in Australian silver certificates and they must go through an approved dealer to open an account or perform transactions. There is no sales tax on either the purchase or sale of precious metals in the country of Australia. There are also no restrictions regarding moving the precious metal in or out of the country.
Individuals who are looking for a different way to spend their money should consider adding United States or Australian silver certificates to the investment portfolio. The United States certificates are particularly rare because they are no longer in production. Australia currently offers the only silver certificates with government backing.