Should face value of american eagle be change to higher denomination?.

I agree with the majority. Face value is meaningless, because they're not intedned to be spent. Even if it was raised to 5 dollars, would you spend it after paying 15 or 20 bucks for it??? Its a silver dollar, and I like it that way. No need to raise the denom. at all.

 

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No - what's the purpose?

 

In this day and age the silver eagle ought to be a $10 coin

 

i agree.

 

...and what happens when silver drops below $10 an oz.

 

I buy it!

 

Not to get REALLY off topic, but something that confuses me about denominations of gold coins:

The Original Denominations vs New Denominations:

$10 - $50
$5 - $25
$2.50 - $10????
$1 - $5

proportionately, shouldn't it be a $12.50 piece? Especially as a bullion coin, it's half the weight of the $25, which is half the weight of the $50.

Was it the enabling legislation?

 

I assume the original legislation stipulated the denominations. As to them matching up with classic gold coins, those were actual currency as opposed to bullion so I don't know why they'd need to match up or be proportional one has little to do or the other. The denominations of the bullion pieces mean little or nothing.

 

I'm not sure but aren't some of the above numbers incorrect? Old $5 (half eagle) must have been ~1/4 oz. (current 1/4 oz. is $10). Old $10 (eagle) was ~1/2 oz. (current would be the $25). Also, I don't think the old $1 (~1/20 oz.) would equal the current $5 (1/10 oz.). Forget fineness, and the fact that anything below still doesn't explain much, heh.

OLD > NEW

$20 > $50 (1 oz. Double Eagle)
$10 > $25 (1/2 oz. Eagle)
$5 > $10 (1/4 oz. Half Eagle)
$2.50 (1/8oz Quarter Eagle)
x > $5 (1/10 oz.)
$1 (1/20 oz.)

 

The denomination matters a lot

The problem is that with floating commodity prices, you cannot have a single monetary instrument that is both bullion and currency. You can set the denomination above, below, or the same as the price of 1oz of silver.

The Same:
If the ASE was denominated at the current price of silver (say $13), then it could be both a bullion coin and a circulation coin only until the price of silver changed. If silver went up, then they would be hoarded/melted. If however, the price of silver went down, then the $13 denomination would become a price floor for the coin. So the government would be guarantying your investment in silver to never go down (it would be nice but it isn't going to happen).

Priced lower than silver:
This is the current system ($1/oz). Silver prices can float, but as long as they do not cross below $1, then the coin never circulates. Thanks to monetary inflation, we are not likely to ever see $1/oz silver in the future. Therefore, it is pure bullion, and not useful as currency.

Priced higher:
If the ASE was denominated at a price above the price of silver (say $50), it would probably be able to survive in the longer term as a currency. However, you would not be able to purchase them for the current $13/oz price of silver, they would cost you $50. So it would be a pure circulation coin and not a suitable bullion coin purchase.

Like many of you, I would love to see a $10 or $20 or $50 circulation coin, but it will have to be a different coin from the bullion coin.

 

I think that's universally understood, but the question is...

Why is a 1/2 oz. AGE $25 and a 1/4 oz. ASE $10? Also, ignoring the fact that comparing the two doesn't make sense, why is a single coin (such as the 1/2 oz.) $25, and not a $30 denomination, or $40, or $15? It seems the numbers are just pulled out of someone's donkey.

 

Well stuff like this IS usually decided by politicians

 

There is only one rationale for placing a denomination on what is essentially a bullion coin - to make it "legal tender".

So long as the face value is below the melt value, what earthly difference does it make what that face value is?

A 1 oz. silver coin denominated $0.01, and a 1 oz. silver coin denominated $10 will both trade at approximately the bullion value of silver (currently north of $13), so that denomination is totally irrelevant, except to confirm that it is, in fact, NCLT and not a medal.

 

But the price on the proof version would have to go up $4.

FIVE DOLLARS

Oh yes that is SO much more attractive than

ONE DOLLAR

 

higher denomination

my final analysis is $5.00 denomination for am eagle silver dollar coin.

 

Did you make this analysis on the back of an envelop like Albert Einstien did at the Patent
Office, or like Lincoln did when he wrote the Gettysburg Address. Can I see the entire calculation
of your analysis?

What does the 1970 in your name represent? Is that a year of birth?

Ruben

 

I don't think it would screw things up. It would just put a floor under the price of the coin. So if you paid $15 bullion value for a silver eagle with a $10 dollar face value and the price of silver when to $5, the coin would still be worth $10. Is this a problem?

 

That still doesn't make sense. Why wouldn't someone accept a $10 coin with $5 of silver in it when they accept quarters with about 6 cents of metal in them everyday? But you are correct that at times when the face value is higher than the bullion value, you can't sell them as bullion. Instead, you can pass them on at a higher valuation, which seems to be more of an advantage than disadvantage. I just don't see any downside to it.