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

I don't think it would circulate enough to be worth doing. The $10 bill is there and people don't like to carry coins...that has been shown with the $1 coin and even fewer would want to carry a large (Ike sized) coin. People will inherently want to carry the bill over the coin.

 

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There was a proposal in Mexico which solved this problem. The idea is to periodically adjust the face value upward when the price of metal rises, but to never decrease it if the price of the metal falls. In this way, the purchasing power of the consumer adjusts upward for inflation, but can never drop. The proposal was made in connection with a proposal to restore silver coins to circulation. The most common objection is that the face value could end up being higher than the underlying metal value, but that argument is easily dismissed because the face value of nearly all coins is higher than the metal value. As long as the face value keeps up with the melt value or slightly exceeds it, the coins will never be melted for industrial purposes.

It's an intriguing idea.

 

I guess I over-thought this one a bit. Somehow I was thinking that if the denomination was raised to...say $10, and the bullion price dropped below that, it may put the government in a tough spot. Your right...makes no difference. :bow:

I am curious if bullion coins are considered "legal tender"...if you can actually spend them...Hmmm.

 

Yes they are and yes you can.

 

Yes. It would not be smart, lol. But you could definitely legally spend a Silver Eagle for one dollar.

 

As a lover of silver coins I think that sounds great. They would probably just be hoarded though.

 

one thing has NOTHING to do with the other...

 

I think they would be used, even more than the dollar which has no value. But a coin with value would be used and saved.

It's the second point that the government actually has issue with. They don't want people saving cash in the vault. I would make a $10 coin and a $50 coin with silver.

Ruben

 

Not really. Its a recipe for complete confusion and would sink the Mexican economy worse than it is by strapping it to the silver standard. And its trading of the Mexican Peso on international markets would be all but ended.

 

my propose face value:
gold one ounce - $100.00
gold half ounce - $50.00
gold 1/4 ounce - $25.00
gold 1/10 ounce - $10.00

silver one ounce - $5.00
silver five ounce - $25.00 (in case mint decide to produce it)

 

I would like to see that...plus silver kills bacteria and viruses; unlike paper (linen) money.

I guess cointerfeiting is the greatest concern. The chinese are getting pretty good at counterfeiting collector coins...which are closely scrutinized. Can you imagine what they could do with a $50 coin?

There would have to be some sort of imbedded RFID tag...or some other new technology that would prevent counterfeiting.

 

Not really. Its a recipe for complete confusion and would sink the Mexican economy worse than it is by strapping it to the silver standard. And its trading of the Mexican Peso on international markets would be all but ended.

 

deja-vu :rolling:

 

Why do you think it would be used? Large coins have never been popular...the reason the majority of people don't use the current dollar coins has nothing to do with it having "no value" it is because they don't want to carry and deal with the coins. The paper $1 note has even less value than the coin. Nobody wanted to carry around large silver dollars back 100 years ago and it was a total failure last time they tried it back in the 1970s (which had nothing to do with their composition). People just don't want to carry coins...especially large coins when paper is an alternative.

Now, I love silver coins and I would love to see some more out there...but it just wouldn't work and would be a waste of government money.

 

It does not matter these are not coins they

It does not matter these are not coins they are hunks of silver, gold and platinum made by the U.S. mint to resemble coins.
I do not even think they would have placed a denomenation on them had it not been the law to do so.
Now don't get me wrong - they are beautiful and I think owning them is great but they are not coins in the practicable sense of things IMO.
They should not be graded - they are all perfect for the type. It is unfair to grade these with the same standard as working circulated type coins. They are not made the same, intended for the same use, packadged for, or delivered the same, charged for the same - that goes for proof coins as well.
I really believe I could argue succesfully in a court of law that these are not coins "in the most commonly understood" scheme of things.
I have never viewed them as coins and I bet if you are really honest with yourself - you don't either. They are chunks of precious metal and that is their most thought about use.
The same thing goes for all proof and commems except in the rare case that they have been circulated.

 

By law they are coins...but I understand what you are saying. They were never meant to be treated as currency and thus don't need a denomination on them (although they can and occasionally are spent). That has been the point made every time this thread has come up (which it has been bumped up several times...always with the same result). :thumb:

 

My bank teller told me that someone turned in 20 American Eagles (she didn't know the name, but said it was a dollar coin with a wlking liberty front and an eagle on the back with a note saying it was an once of silver) for 20 dollars at her branch.

They now reside in her home as she bought them.

 

I know. I'm so sick of it, and of elaine bumping her own (old) threads in general.

 

I think your proposition that large coins have never been used is incorrect. They have been used historically, and they were large enough in value such that they represented significant wealth for common people and they often saved them or used them for large transactions. People use money for other than circulating it. But that being said, I'm not tied to a large cartwheel coin. I'd like to see silver coins in circulation for large denotation because I think people will apreciate the beauty of silver.

 

I think coin collectors would like it...and maybe a few more people. But, the vast majority of the population couldn't care less about such things. I don't think they would be popular for that reason...let alone the size needed for a $10 silver coin to exist. At .900 silver, the coin would have to be at least as big as a half dollar to have close to $10 in silver. Now, I know that the face value is typically higher than the metal value for circulating coins...so it wouldn't have to be bigger...but people don't like coins that size.