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Definition
A gold certificate was a document that showed ownership of gold without people in America having to store the precious metal themselves. It could be cashed in for gold at any bank, through the Federal Reserve. These gold certificates were used as actual currency, redeemable for goods and services.
History
The U.S. government began issuing gold certificates in 1865. The first ones were hand dated with the owner's name written on them. The owner traded his gold for the amount written on the certificate and he was the only one who could redeem it, at some other time. At later dates, gold certificates were issued in series of numbers and for specific amounts. These were transferable and could be cashed in by anyone. In 1933, the U.S. went off the gold standard and gold certificates were taken out of circulation.
Franklin D. Roosevelt ordered American citizens to turn in their gold (coins, bullion or certificates) to the Federal Reserve Bank. Those who did not comply would be imprisoned and fined. This decree was backed by Congress a short time later with passage of law.
Types
The first gold certificates, beginning in 1865, portrayed an eagle across the dollar amount. The backs were printed with an abstract design. In 1870, 1871 and 1875 portraits were exchanged for the eagle, with the back sides remaining the same. The 1888 gold certificate was printed very similarly to the 1875 one. Certificates from 1905 to 1913 were similar to our modern currency with portraits on the front and a series of eagles on the reverse side. In 1928, gold certificates looked much like the Federal Reserve's "green backs." A final gold certificate was printed in 1934, for the express purpose of settling gold balances. This particular gold certificate is illegal to own.
Size
Between 1863 and 1928, gold certificates were produced in a larger size. There were nine separate issues of this size certificate. Beginning in 1928 until the last gold certificates were issued, in 1934, a smaller size was made, similar to today's paper money.
Value
Today, gold certificates are worth a lot more than their face value. Currently, a 1922 $10 gold certificate is valued from $1,795 to $3,750, depending on its serial number. As with all things, more value is attributed to the least available. An 1882 $20 gold certificate has an estimated value of $6,192.