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<p>[QUOTE=&quot;CentDime, post: 187804, member: 7297&quot;]&quot;Ok - silly question - Why does the government issue coins made out of precious metals with very low circulation values? &quot;</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&#039;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&#039;t want to set the floor higher because they don&#039;t want to take the chance of those coins becoming circulated.[/QUOTE]</p><p><br /></p>

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