Financial Glossary: Bimetallism


en			ru			jp

Bimetallism

Bimetallism

A government's Commission to Exchange its Currency on demand for stated amounts of either of two metals, usually gold or silver. Also bimetallic standard.

Bimetallic Standard is a monetary system in which a government recognizes coins composed of gold or silver as legal Tender. The bimetallic standard (or bimetallism) backs a unit of Currency to a fixed ratio of gold and/or silver.

The bimetallic standard was first used in the United States in 1792 as a means of controlling the value of money. For example, during the 18th century in the United States, one ounce of gold was equal to 15 ounces of silver. Therefore, there would be 15 times more Silver (by weight) in $10 worth of silver coins than $10 worth of gold coins. Adequate gold and silver was kept in reserves to back the paper Currency. This bimetallic standard was used until the civil war, when the Resumption Act of 1875 stated that paper money could be converted to gold.

Posted by Henley & Partners Group Holdings Ltd

Back

Privatebanking.com

Get the attention you always wanted and promote your corporate image and standing by benefiting from our state of the art interactive web presence.

Ascent Limited

Experience The Difference. Ascent Limited provides first class wealth management and family office services. Our private banking team, assembled from a group of highly experienced banking professionals, will provide financial advice tailored to your individual requirements and keep your portfolio in tune with the latest market developments and opportunities.

©	Copyright by PRIVATE BANKING.COM 2002- - All rights reserved.