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

Are you telling me that the $1,000 bills I have don't have 100x more paper than the $10 bill I have in my wallet?

If you get down to it, what you (the sweeper of clouds) are saying makes total sense, and at the same time it doesn't, because none of it matters (as you said, people accept quarters with about 6 cents of metal in them everyday).

I think it has more to do with legislation and acceptance than with metal worth or denomination. Bottom line is that a $100 bill isn't worth more than a $1 bill, and certainly a $100 bill doesn't have any meaningful value to it (OK, maybe 6 cents or so). Same is true for coins, though a 1 oz. silver dollar is worth more than $1 due to the metal.

 

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currently am eagle denomination is fair

one ounce of gold is about 50x ounce of silver.

so, if one ounce of gold at $50.00 face value. then, the one ounce silver is $1.00. but the ten dollars gold (1/4 oz) should be $12.50 instead of $10.00.

 

It would almost be worth trying to spend a few and seeing what happens (if I had more money than I knew what do do with, which I don't think will ever be the case). Maybe a tip on a $65 meal.

Errr... it is $1 legal tender, is it not? If so, I don't know of a reason anyone wouldn't accept it, especially if they knew it contained $13 of silver. If I didn't ask it before, are the $1 ASEs legislated as $1 legal tender coins (as are the Sacs and Presidents)?

 

It is legal tender, but it's non circulating legal tender from what I understand. I don't really know the distinction, but I suppose it being non circulating would mean no one has to accept it for payment (of course if the know what it is they'd accept it in a heartbeat). The fact of the matter is they are bullion rounds. Adding a denomination just separates them from the 1oz rounds being put out privately & makes them more collectible for some since they're issued by the government. They aren't meant to be money in the same sense as something like a state quarter.

But hey, if any of you want to buy something from me I'll be happy to accept them at face value.

 

Right in a literal sense no one has to accept anything. In the practical sense they will take any current regular legal tender to do business. The point was that ASE's are supposedly Non Circulating legal tender. They're not intended to be used in everyday commerce.

No, probably not. That's why I said if they knew what it is they'd accept it in a heartbeat, if they didn't I'd expect they'd probably turn it away.

The only time I've actually heard of the police being called about passing a counterfeit when it was an odd piece of currency was for a $2. I've heard virtually the same story three times & it's always turned out to be an urban myth. I'm sure they get questioned & even refused all the time though. Many here seem to be saying that an ASE fits in the same boat with these though. The $2, Ike, etc are Circulating Legal tender as far as I'm aware the ASE is not right?

 

I think an interesting thought here is the canadian $5 maple leaf one ounce silver bullion coin. Those were _definitely_ around when an ounce of silver was less than $5, did people spend them?

 

reduce face value

look at first lady gold coin. 1/2 oz. gold coin supposed to have a face value of $25.00. but it was downed to $10.00 instead. so there is no standardization on this matter.

 

Can you explain how you came to this conclusion?

It is right now, but the ratio is constantly changing. In the 1790's it was 15X, then it went to 15.75X, by 1800 it was 16X. During the 1860's it was 7X. By 1893 and the Sherman silver purchase act it was 29X. At the time of the gold/silver bimetallism debates in 1896 it was 31X. At the time of the gold recall it was 60X. It reached its worst point in 1939 at 100X. By 1967 it was back down to 16X. It reached a modern low in 1979 at 14X and a modern high of 93X in 1992. In 1986 when the eagles were authorized it was 69X.

If they had made the silver eagle a $5 coin in 1986, its bullion value would have been on 36 cents over the face value. There would be very little profit to have been made from making them. And most of the time from May of 1989 to Dec 2003 they would have been a circulation coin. And the government didn't WANT them to be a circulation coin. The gold eagle using the multiplier at the time of 69X would have had to be a $350 coin with a bullion value of $367. It would have been a circulation coin in 1992 and 1997 -Dec 2002. Once again the government didn't WANT a circulating gold coin.

 

dollar deprecisation

i think the face value of american eagle gold and silver as well as platinum should change to higher denomination. because the dollar is depreciation. say $50.00 change to $100.00 for one ounce gold. $1.00 silver change to $5.00.

 

I think it should be tied to the face value of the Ron Paul one ounce silver Liberty coin which is currently $20. :mouth:

 

one ounce silver

if you really want to use it as money for one ounce silver american eagle. the face value should be $50.00 at most. that is for general circulation use.

 

No one spends them, so I don't think it matters. The "denomination" is meaningless.

 

Why bother changing the face value of the coin when they are bought for their beauty and bullion value. Changing the face value would create another "first year of issue" situation with collectability going up. Other than that, why bother.

Bruce

 

AnemicOak

"The only time I've actually heard of the police being called about passing a counterfeit when it was an odd piece of currency was for a $2. I've heard virtually the same story three times & it's always turned out to be an urban myth. I'm sure they get questioned & even refused all the time though. Many here seem to be saying that an ASE fits in the same boat with these though. The $2, Ike, etc are Circulating Legal tender as far as I'm aware the ASE is not right?"

Just a couple of months ago there was an article in the news about a boy that passed 4 "counterfeit" pres dollars at the local Burger King. The coins were confiscated by the police and the boy avoided prosecution when his mother made restitution to the BK. As many people now know the boy removed the coins from a pres. proof set and were indeed legal tender.

I believe the denominations on the silver and gold coins are there for only one reason. To sell more of them. There are coin collecting purists that wouldn't be caught dead with a silver round but faithfully buy the ASE's because its a "coin". On the other hand I have never heard of someone refusing to buy bullion because it had a denomination on it.

Just my thoughts


Richard

 

Yes, the police were called because the "informed" counterperson knew they must be counterfeit, and how did they know? Because the Madison dollar hadn't been released yet, and since this group had a Madison in it they must be fake.

 

change change change

now that it is recession. and other such as inflation, dollar devaluation, sub-prime and financial crisis, world wide stocks market bubbles. why not change the face value of mint products to higher denomination. such as silver eagle from one dollar to five dollars. gold eagle one ounce $50.00 to $100.00 and so forth.

 

What difference would it make. Those coins are not meant to be circulated anyway so their face value is irreverent. They're value is solely determined by the bullion amount they contain which wouldn't change with the increase in face value. So, in my opinion there is really no reason to change it.

 

I'd actually rather it get a $20.00 value and circulate