When Did Silver Certificates End and What Are They Now?

Silver certificates were a form of representative money issued by the United States government, initially redeemable for physical silver metal. Their historical significance lies in providing a paper currency directly backed by a precious metal.

Cessation of Issuance

The U.S. government began phasing out the issuance of new silver certificates in the early 1960s. The last series of silver certificates, the 1957 series, was printed in denominations of $1. The decision to cease their production was primarily driven by the rising market price of silver. As the value of silver increased, it became economically unsustainable for the government to continue issuing currency that promised to exchange for silver worth more than the face value of the certificate.

This shift reflected a broader change in U.S. monetary policy, moving away from commodity-backed currency. The Treasury Department officially stopped issuing silver certificates on June 4, 1963. This action marked the end of new silver certificates being put into circulation, paving the way for the dominance of Federal Reserve Notes as the primary form of U.S. paper currency.

Termination of Silver Redemption

While the issuance of new silver certificates ended in 1963, the ability to redeem existing certificates for physical silver continued for a short period. This redemption privilege was formally terminated through legislative action. Public Law 88-36, signed into law on June 4, 1963, provided for the orderly transition away from silver-backed currency.

This law specifically authorized the Secretary of the Treasury to remove silver certificates from circulation and replace them with Federal Reserve Notes. It also set a definitive deadline for redemption. Holders of silver certificates had until June 24, 1968, to exchange them for silver bullion or silver dollars at the Treasury. After this date, the direct link between the paper certificates and physical silver was severed.

The termination of silver redemption completed the transition of the U.S. monetary system to a fiat currency standard. This meant that the value of the currency was no longer tied to a physical commodity but was instead based on government decree and public trust.

Present-Day Status

Today, silver certificates maintain their status as legal tender in the United States. They can still be used at their face value for transactions, just like any other U.S. dollar bill. However, they are no longer redeemable for physical silver, and their primary value now lies in their appeal to collectors.

The collectibility of silver certificates depends on several factors. The condition of the note, its rarity, the series year, and the signatures of the Treasury Secretary and Treasurer all influence its numismatic worth. Older series, notes with low serial numbers, or unique printing errors can command prices significantly above face value. While they function as currency, their historical significance and scarcity make them valuable items for collectors.