American Eagle Silver Dollar???
Dkillett
Posts: 103 ✭✭
I was thinking about this earlier today. I know I'm probably in left field, but here goes. I understand the the Silver American Eagle is a collector coin and isn't intended to be spent, but why is the face value of this coin only $1.00. Why is it not $5. I guess the same could be said for Gold Coins as well. Not sure If I have a valid point with this or not. I'm relatively new to this board, and if this has been discussed recently I apologize.
I guess let the flaming begin, LOL.
David
I guess let the flaming begin, LOL.
David
0
Comments
I never understood just making numbers up for the sake of it.
And Ive never heard a good reason why they do this.
Our gold coins go to what $50? But are worth $1100 and change? How is it $50 in gold then?
<< <i>How about this, why not price them within a specific range of melt $$$'s...... >>
And,
They aren't just collector coins, they are a medium to trade bullion without assay, just like trade dollars. There are some lower mintage coins offered on the website that are collector coins only.
<< <i>My guess is that the denomination has no particular significance; it was chosen more or less for euphony and to put something tangible behind the term "silver dollar'. >>
and
They put a face value on all the bullion based coins far below any possible point where they might be drawn into actual circulation.
End of story.
bullion issues, no matter what Nation they are from, are denominated at a low value so they'll never be spent. since the price of PM's is so volatile and given to uncontrollable forces, the issueing Governments couldn't denominate them in a value close to melt which would seem "sensible" to the masses. using the American Silver Eagle, it couldn't have been valued at much more than $1 when first issued(i'm uncertain what spot price was in 1986) or there would have been danger that it would be used for commerce and that's clearly not what it was intended for. the same goes for a $50 American Gold Eagle.
i know that around 1999-2000 or shortly thereafter the spot markets were around $5/$260 respectively for Silver and Gold, so a 5-1 ratio kept the bullion out of circulation.
if you stop to think about what took place during the middle of the 19th century you gain some perspective on why these items are denominated as they are. people would take circulating coins, melt them and i suppose put the Silver back in line to be Minted at a higher cost to the Government. that's why we have changing weights/sizes and all the arrows at dates on certain issues. further, when we had precious metal in circulating coins the Governments of the World held the markets in check with stagnant PM prices. the system was set up so that the value of Silver in an American Silver Dollar was just under $1. that meant a resonable person wouldn't melt the coin, they'd spend it for the higher value amount.
at least that's how i understand things. if i've convoluted the facts, someone please correct me. if i've screwed the pooch, someone smack me down!!!
They put a face value on all the bullion based coins far below any possible point where they might be drawn into actual circulation.
End of story.
Addendum to the story...the legislation was written that way.
The main reason that they put the face value so low on both the silver and gold (and later, platinum) American Eagles is because they didn't want a repeat of 1964 when silver coins were being withdrawn from circulation because the price of silver had risen, ultimately causing the government to demonetize it.
I knew it would happen.
This keeps it out of the metal cat.
Just a guess?
<< <i>Silver eagles started in 86. What was the price of silver then? >>
Silver was only 4 or 5 bucks an ounce since if I remember correctly, my 1986 SAE cost me around $7.95. Gold was around $230-$250.
The name is LEE!
If you understand what is coming, then you can duck. If not, then you get sucker-punched. - Martin Armstrong
<< <i>
<< <i>Silver eagles started in 86. What was the price of silver then? >>
Silver was only 4 or 5 bucks an ounce since if I remember correctly, my 1986 SAE cost me around $7.95. Gold was around $230-$250. >>
.......................................................................................................................................................
Silver was $4.80-$6.20 in 1986
Gold was $325-$435 in 1986
The denomination placed on the coin is in practical terms of trading these coins is irrelevant, and the selection of the denominations merely a nod to the past and tradition.
So its not so much the denomination that is of concern but more so the legal tender status issue.
If you understand what is coming, then you can duck. If not, then you get sucker-punched. - Martin Armstrong
<< <i>Look at the bright side. If silver ever drops below $1.00, the ASE can still be spent as a full dollar.
Why wait, pay your taxes with them at face.
<< <i>
<< <i>
<< <i>Silver eagles started in 86. What was the price of silver then? >>
Silver was only 4 or 5 bucks an ounce since if I remember correctly, my 1986 SAE cost me around $7.95. Gold was around $230-$250. >>
.......................................................................................................................................................
Silver was $4.80-$6.20 in 1986
Gold was $325-$435 in 1986 >>
The average price of silver during 1986 was $5.47 per ounce.
During 1986, the price of gold started the year at a low of $326.30 per ounce. It closed the year at $396.13 after trading as high as $438 in September.
If you understand what is coming, then you can duck. If not, then you get sucker-punched. - Martin Armstrong
MOO
TD
1986 silver charts
Click on silver under HISTORICAL CHARTS on the left, then select 1986 under YEARLY SILVER CHARTS at the bottom.
that's your answer. Oh, and Congress said it's a dollar.
bob
<< <i>one ounce Canadian silver maples are $5 coins >>
Yeah, but thats the metric system.
<< <i>
<< <i>one ounce Canadian silver maples are $5 coins >>
Yeah, but thats the metric system.
No, they are imperial gallons.........
HH
1947-P & D; 1948-D; 1949-P & S; 1950-D & S; and 1952-S.
Any help locating any of these OBW rolls would be gratefully appreciated!
<< <i>What makes even less sense is that the new 5ozt silver bullion coin will be denominated at 25¢ ! ! !
HH >>
Many of those 5-oz bullion coins will be spent when silver goes below 5 cents per ounce.
* * * *
In the 1990s, silver eagles would occasionally be used as tips when the price of silver was below $4 per ounce.
I recall that Canada had some problems with people trying to spend 1976 Montreal Olympics silver commems when their bullion value dipped below their $5 and $10 face value.
<< <i>I recall that Canada had some problems with people trying to spend 1976 Montreal Olympics silver commems when their bullion value dipped below their $5 and $10 face value. >>
I remembered that. People tried to deposit them at their face value and the banks refused to accept them. If I remember correctly, the mint began buying them back and melted them.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>
<< <i>I recall that Canada had some problems with people trying to spend 1976 Montreal Olympics silver commems when their bullion value dipped below their $5 and $10 face value. >>
I remembered that. People tried to deposit them at their face value and the banks refused to accept them. If I remember correctly, the mint began buying them back and melted them. >>
I think that the Canadians initially dishonored their silver commemoratives, but after the stink that it made them look like a third-world country, they announced that you could use them at full face value to buy numismatic products from the Royal Canadian Mint.
TD
<< <i>
<< <i>
<< <i>I recall that Canada had some problems with people trying to spend 1976 Montreal Olympics silver commems when their bullion value dipped below their $5 and $10 face value. >>
I remembered that. People tried to deposit them at their face value and the banks refused to accept them. If I remember correctly, the mint began buying them back and melted them. >>
I think that the Canadians initially dishonored their silver commemoratives, but after the stink that it made them look like a third-world country, they announced that you could use them at full face value to buy numismatic products from the Royal Canadian Mint.
TD >>
Yup. People were shocked that they couldn't spend them even though they were silver and issued by their government. I'm not sure if they were legal tender or not but apparently the banks could still refuse them. The mint melted quite a few of the original mintage of these commems. Very sad situation overall.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire