store of value: meaning, definition, pronunciation and examples
C2Formal, Academic, Technical (Economics/Finance)
Quick answer
What does “store of value” mean?
An asset or commodity that can be saved, retrieved, and exchanged in the future without significantly losing its purchasing power.
Audio
Pronunciation
Definition
Meaning and Definition
An asset or commodity that can be saved, retrieved, and exchanged in the future without significantly losing its purchasing power.
A function of money or an investment where its value is stable over time, allowing for wealth preservation; a key concept in economics distinguishing assets that maintain worth from those that depreciate.
Dialectal Variation
British vs American Usage
Differences
Spelling differences apply to the word 'store' only in derived forms (e.g., 'stored' vs. 'stored' is same). The term itself is identical. In British financial discourse, 'store of value' might be slightly more frequent in academic contexts, while American usage sees more frequent application in mainstream financial media.
Connotations
Identical technical connotations. In everyday British English, it might sound more academic than in American English, where financial terms are more commonly disseminated in popular media.
Frequency
Moderately low frequency in general corpora, but high frequency within economics, finance, and cryptocurrency texts in both varieties.
Grammar
How to Use “store of value” in a Sentence
[Asset] is a store of value.[Asset] acts as a store of value.The store-of-value function of [asset] is debated.Vocabulary
Collocations
Examples
Examples of “store of value” in a Sentence
verb
British English
- Gold has historically stored value effectively.
- The currency failed to store value during hyperinflation.
American English
- Real estate can store value over decades.
- Some argue Bitcoin stores value better than fiat currency.
adverb
British English
- The asset performed store-of-value-wise over the period. (Highly formal/rare)
American English
- The metal held its value store-of-value-well. (Highly informal/constructed)
adjective
British English
- Gold is considered a premier store-of-value asset.
- They discussed the store-of-value characteristics of government bonds.
American English
- Investors seek store-of-value investments in volatile times.
- The store-of-value property of the commodity was analyzed.
Usage
Meaning in Context
Business
Discussed in investment strategy regarding asset allocation and wealth preservation.
Academic
A core concept in monetary economics, distinguishing one of the three functions of money.
Everyday
Rarely used explicitly, though the concept is understood when discussing gold, property, or savings.
Technical
Precisely defined in finance for comparing assets like bonds, commodities, and cryptocurrencies.
Vocabulary
Synonyms of “store of value”
Strong
Neutral
Weak
Vocabulary
Antonyms of “store of value”
Watch out
Common Mistakes When Using “store of value”
- Using 'storage of value' (incorrect).
- Confusing it with 'unit of account' or 'medium of exchange' (other functions of money).
- Treating it as an adjective without hyphens (e.g., 'store of value asset' should be 'store-of-value asset').
FAQ
Frequently Asked Questions
No. An investment aims for growth or income. A store of value aims primarily to preserve existing purchasing power with minimal loss. Some investments (like gold) can also be stores of value.
Historically, precious metals like gold. In modern economies, real estate, certain currencies (e.g., US dollar, Swiss franc), and high-quality bonds are commonly cited.
Money is a store of value because it can be saved and used later, provided inflation is low. If inflation is high, money loses this function rapidly.
No. While historically tangible (gold, land), intangible assets like certain financial securities or digital currencies claim to fulfil this function based on trust and scarcity.
An asset or commodity that can be saved, retrieved, and exchanged in the future without significantly losing its purchasing power.
Store of value is usually formal, academic, technical (economics/finance) in register.
Store of value: in British English it is pronounced /stɔːr əv ˈvæljuː/, and in American English it is pronounced /stɔːr əv ˈvæljuː/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “(To be) as good as gold (informal, related concept)”
Learning
Memory Aids
Mnemonic
Imagine a STOREhouse where you put your VALUE (money/gold). A good 'store of value' is like a storehouse that protects its contents from rust, rot, or thieves (inflation, decay).
Conceptual Metaphor
VALUE IS A PHYSICAL SUBSTANCE THAT CAN BE STORED IN A CONTAINER (ASSET).
Practice
Quiz
Which of the following is the BEST example of a 'store of value'?