What is the point of face value in gold/silver coins?
im looking tο bυу gold аחԁ silver аחԁ i јυѕt dont ɡеt wһаt іѕ tһе point іח tһе face value. ԁοеѕ іt mean іf tһе gold drops under $50 (thats tһе face value οf tһе american eagle gold coin) tһеח tһе coin wіƖƖ bе worth $50 οr +$50 οr none οf tһе above?
probably to get over the currency transfer regulations that prevent people from taking large amounts of currency in or out of a country, thereby facilitating money laundrying (since most crooks are likely to buy large amounts of gold anyway – the mints are just helping out their customers)!
All coins produced by the US Mint per direction of Congress must have some denomination on the coin whether they are intended for general circulation, commemorations, collectors, or as bullion. The denominations on other than general circulation coins are more of a formality and will not be set near the intrinsic value of its metal content. By setting the face value much lower than the precious metal value, the confusion of which is to be used for a sale/purchase value is avoided.