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Legal Tender Values

OnastoneOnastone Posts: 3,786 ✭✭✭✭✭

Bullion is legal tender, but the legal tender value for silver or gold is ridiculously low....seems like the face value of an ASE should be set higher than a dollar. Why wouldn't the redesigned Eagle have been changed to keep up with inflation? At least the new Liberty gold coins are valued at $100, but that's still ridiculously low. Just seems to me that putting ONE DOLLAR on our pure silver Eagles needs to be updated.

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    ZoinsZoins Posts: 33,910 ✭✭✭✭✭
    edited December 8, 2022 7:30AM

    @Onastone said:
    Bullion is legal tender, but the legal tender value for silver or gold is ridiculously low....seems like the face value of an ASE should be set higher than a dollar. Why wouldn't the redesigned Eagle have been changed to keep up with inflation? At least the new Liberty gold coins are valued at $100, but that's still ridiculously low. Just seems to me that putting ONE DOLLAR on our pure silver Eagles needs to be updated.

    It doesn't need to be updated as it's done intentionally. There's a desire for these coins to never circulate as our commercial systems, including banks, vending machines, and merchants are not set up for it. Imagine trying to spend gold coins at a store or, even better, the bi-metallic Library of Congress $10 coin?

    The underlying issue is that most countries are on a fiat system with no desire to go back to a gold standard. Introducing this could muddy the picture here with 2 classes of money.

    The example of the Canadian coin posted by @291fifth is an example. Of course, one can debate whether they should be allowed to circulate, but today, they are not intended to.

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    JBKJBK Posts: 14,788 ✭✭✭✭✭

    As I recall, the US gov't adds the face value to the cost of the bullion when it's sold to the authorized dealers. So, higher denominations would mean higher premiums.

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    rickoricko Posts: 98,724 ✭✭✭✭✭

    Government controlled and certified tokens of precious metal, intended for government profit. Cheers, RickO

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    FrankHFrankH Posts: 780 ✭✭✭✭✭

    Our monetary authorities do NOT want anyone noticing how far gold has risen.

    But it's fun in a coin shop to see folks going nuts over the price when the face value is fifty bucks. :D

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    OnastoneOnastone Posts: 3,786 ✭✭✭✭✭

    Thanks for the replies....fascinating how that all works...token values for anti counterfeiting laws and to keep them out of circulation! And I did think of the 5 oz puck with the value of a quarter!!!!!

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    MasonGMasonG Posts: 6,268 ✭✭✭✭✭

    In 1929, you could exchange one of these...

    for one of these at the bank.

    Today, you'd need around 100 of the notes to get one of the coins.

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