Log in or Sign up
Coin Talk
Home
Forums
>
Coin Forums
>
Coin Chat
>
Circulation Values for Precious Metal coins
>
Reply to Thread
Message:
<p>[QUOTE="CentDime, post: 187804, member: 7297"]"Ok - silly question - Why does the government issue coins made out of precious metals with very low circulation values? "</p><p><br /></p><p>The reason I think they do it this way is to not put a dangerous floor on the value of the coin. This way the coin will trade at the bullion value of the coin down to the low circulation value. </p><p><br /></p><p>If these were intended to circulate they would do just the opposite, but the government doesn't want all these coins to circulate so they stick an impossiblly low value on them. In the example the guy that bought the beer only received $100 for a coin valued at $1160 in bullion. He lost $1060 dollars by buying the beer with that coin.</p><p><br /></p><p>That coin will trade at bullion all the way down from $1160 to $100 and stop at that price, so it is a floor. They don't want to set the floor higher because they don't want to take the chance of those coins becoming circulated.[/QUOTE]</p><p><br /></p>
[QUOTE="CentDime, post: 187804, member: 7297"]"Ok - silly question - Why does the government issue coins made out of precious metals with very low circulation values? " The reason I think they do it this way is to not put a dangerous floor on the value of the coin. This way the coin will trade at the bullion value of the coin down to the low circulation value. If these were intended to circulate they would do just the opposite, but the government doesn't want all these coins to circulate so they stick an impossiblly low value on them. In the example the guy that bought the beer only received $100 for a coin valued at $1160 in bullion. He lost $1060 dollars by buying the beer with that coin. That coin will trade at bullion all the way down from $1160 to $100 and stop at that price, so it is a floor. They don't want to set the floor higher because they don't want to take the chance of those coins becoming circulated.[/QUOTE]
Your name or email address:
Do you already have an account?
No, create an account now.
Yes, my password is:
Forgot your password?
Stay logged in
Coin Talk
Home
Forums
>
Coin Forums
>
Coin Chat
>
Circulation Values for Precious Metal coins
>
Home
Home
Quick Links
Search Forums
Recent Activity
Recent Posts
Forums
Forums
Quick Links
Search Forums
Recent Posts
Competitions
Competitions
Quick Links
Competition Index
Rules, Terms & Conditions
Gallery
Gallery
Quick Links
Search Media
New Media
Showcase
Showcase
Quick Links
Search Items
Most Active Members
New Items
Directory
Directory
Quick Links
Directory Home
New Listings
Members
Members
Quick Links
Notable Members
Current Visitors
Recent Activity
New Profile Posts
Sponsors
Menu
Search
Search titles only
Posted by Member:
Separate names with a comma.
Newer Than:
Search this thread only
Search this forum only
Display results as threads
Useful Searches
Recent Posts
More...