The face value doesn't matter. That's the whole thing. A face value it added as a through back to when gold and silver was actually money. US bullion coins are still technically legal tender and yes, you can go to the Fed and get $1 for your silver eagle, $100 for your platinum eagle, $5 for your gold commemorative, or even $0.50 for your 2014 gold Kennedy. Even a normal retail bank can take the stuff and give you FRNs for it at face value, but most don't because they don't understand what the stuff is. No person in the right mind would actually do this, but you can if you really wanted to. If this bothers you so much, then don't buy things with face values.
I think he's just arguing with you because he's trying to defend his precious Krugerrand and its lack of a face value. It's different than the rest of other (more popular) bullion coins (like Eagles and Maples, which have stamped values), so he wants to persuade you that face values are pointless and dumb.
Face Values are arbitrary The 2015 High Relief Liberty 1oz Gold is at $100 The 1997-2017 1oz Platinum is at $100 aren't all 1 oz Gold Eagles are $50 2017 Liberty 1oz is $100 totally arbitrary.
Very true, but it might work if the coins had something like a quarter of an ounce of silver, so even if something did happen to the dollar people would still have some money. I personally never thought people would spend the Canadian silver coins, but they tried to.
I gave this some thought, and the Krugerrand does have a face value... it's a Kruger Rand. The 1/2 oz is a 1/2 Krugerrand, which implies that it's a unit of value, even if mythical. Now, my question is what the bank would credit an account that has a Krugerrand deposited into it. Unlike gold Krugerrands, the platinum and silver versions have actual face values. I wonder if this will be enough for tax collecting agencies to argue that Krugerrands (the ones labeled in units of Krugerrand) are not legal tender.
Krugerrands ARE legal tender in South Africa... Reference the SOUTH AFRICAN RESERVE BANK ACT 90 OF 1989, although it's sort of a back door... Further, in Appendix 2, it defines the mass standards for coins. So a Krugerrand is a coin and could be tendered for it's gold value. https://www.resbank.co.za/BanknotesandCoin/Upgrade1Banknotes/Documents/SA Reserve Bank Act 90 of 1989.pdf
Nope. Just nope. As long as people have a choice of what to spend and what to keep, they'll keep the good stuff and spend the bad stuff. Half dollars circulated heavily up until the early 1960s. Once everything else was clad, even the 40% of silver in a new half dollar, worth much less than 50 cents at the time, was enough to keep them mostly out of circulation. By the time half dollars moved to cupronickel clad, people had gotten out of the habit of using them, and they never recovered.
You can't have precious metals in money unless the world is going to have a set price for them where no matter what that is the price from a pricing standpoint. From a practical standpoint, it can't happen because the world simply needs to many coins in circulation
The days of circulating precious metals coins ended in the US a half century ago and ain't coming back.
You seem like the perfect candidate for the horse manure investment club, i think you would make a great C.E.O.....
There is no value on Krugerrands, because it trades at gold weight value. It's also the world standard bullion coin since it was first minted many years ago. Viva la Krugerrand!
But Banks would not want to hold an investment item in a Checking/Savings account. They would opt to have that put into some other form of Account, like a Kuggerand Fund. After all, when you deposit $20's in $1s they don't store those exact bills in a box for you to withdraw. But they save the Cash into your account. all the face values do is harken back to the pre-33 days. as I mentioned above, the 2017 1oz American Gold Eagle is $50 and the 2017 1oz Liberty is $100. So, those that are worried can figure that out if you are really worried about coinage valuation. Or just succumb to the ideology that PM is a storage of wealth and not direct money as it has to be converted/correlated in some form or another to cash; which is what spot value is (+ numismatics).