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Alexyo?'s Blog

15 May 2017

Daily Coin Thoughts

Coins | Alexyo?

On the 1oz proof silver bullion coin, why give it a face value of one dollar if it's worth $70? I think one person in the US will actually spend it instead of collect it.

Comments

Kepi

Level 6

I doubt anyone would spend silver bullion, but these days who knows?

Longstrider

Level 6

I believe I heard once that in order to be IRA legal, the coin must be legal tender somewhere with a monetary value on it. I could be all wrong on this.

Alexyo?

Level 4

Okay, that makes "cents"

user_9073

Level 5

Giving the metal disc a denomination make it a coin, legal tender, etc. Without the denomination it is just a as specified "chunk" of silver. The US Mint and many others around the world coins that were intended to be valued based on the market price of the metal. Then people started collecting them and along come proofs and other special enhancements. Note that the Canadian Silver Maple Leaf is a coin with a denomination. The Mexican Libertad is not given a denomination and is not considered a coin by many people. The Royal Mint also sells bullion coins with denominations and sell bullion without denomination that are not coins.

Pliny The Elder

Level 5

The answers here are really accurate, so I am just an echo. Congress decides the denomination. Collectors and dealers, in an exotic and timeless mercantile dance, decide the premium they are willing to pay over the current bullion price for the coin. They are only worth $70 to someone willing to pay that. To some people, they are worth whatever an ounce of silver is worth. I could see a $10 or $20 premium over the spot price of silver for coins of especially higher grade. But $50 over spot price, that is steep in my opinion. $1 is too low, and $70 is too high. $40 is about right if you ask me, and nobody did.

Alexyo?

Level 4

Really good answer . Thank you for that interesting thought.

Mike

Level 7

I don't think that that congress or the treasury department does anything based on custom. It's based on the law that's passed for the coin. The new one hundred dollar gold coin was the first. Because that's what the law stated.mike

Conan Barbarian

Level 5

well one once of silver is about $15-$20 and that is why the mint it self sells them for $20-$25 dollars. collectors get them graded then if the coin is really high grade like 69 or 70 then it may be worth a lot more like $70. also with the gold coins that are $5, $10, $50, and $100 they are a lot more than that at melt value

My Aunt was once working as a cashier and somebody paid for their stuff with silver dollars!

Alexyo?

Level 4

What?!

Mike

Level 7

It's not worth 70 dollars . It's worth one dollar legal tender. I have the c.o.a. and it says one dollar legal tender. T here is not 70 dollars of silver in it. It goes by the daily price of silver. At that's the melt price. They put what ever denomination on it that the bill that passed through congress states. Mike

CoinLady

Level 6

I don't think anyone would spend one. I think by law they had to put a denomination on it.

Alexyo?

Level 4

Hmm... good point.

Conan Barbarian

Level 5

i think since it is like a custom going way back to the morgan and peace dollars and in fact other silver dollars. just my opinion there could be more legit answers than that

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