Nominal Face Value

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Special coins are often issued by governments for the purpose of providing something of value to collectors. One example is the American Silver Eagle, which is the official silver bullion of the US. The reverse of the coin, shown below, bears the nominal face value of One Dollar, even though the coin is composed of 99.9% Fine Silver which is currently valued on the "spot market" at USD $16.59 on SilverPrice.org

SilverEagleOneDollar.png

Another example is the Centenario coin issued by Mexico recently shared by @silversaver888. Her post states that it: "...contains 37.5 grams (1.2057 oz) of gold in an alloy of 90% gold and 10% copper" and the current price of gold is USD $1,460.31 on GoldPrice.org. Yet, the Centenario bears the nonminal face value of only 50 Pesos.

My question for my fellow Silver–Gold aficionados is: WHY?

What is the purpose of having a nominal face value that is so far below the actual precious-metals content of the coin? And if such coins are intended for collectors and not circulation, why even have a face value at all...?

I did a search of the Internet prior to asking this, but could not find a definitive answer from any credible source. THANKS for any insight that might be provided by those who understand such things!

 😊

to learn more about either of these projects, please visit: @heyhaveyamet or @steemterminal


10-Dec-2019

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The reason will become very clear...The Face Value of our Coinage, must always be Greater than it’s Melt Value...

It all appears out of wack at present, but will become very clear, after the U.S. Monetary Reset to “Sound Money”...

Feel free the view my latest Posts, by clicking on #ssg-membership...

December 10, 2019... 5.2 Hollywood Time...

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Old gold and silver coins historically prove that the public is simply robbed by inflation and that the current system is far from Sound money.

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That’s all about to change... Prepare now, because there will be no “Second Chance”...
December 10, 2019... 10.7 Hollywood Time...

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Maybe I am !DERANGED but I do give some away too...

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Bang, I did it again... I just resteemed your post!
Week 13 of my contest just started...you can now check the winners of the previous week!
Pixresteemer is also listed as promoter on The Steemians Directory
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Any government produced coin must have a denomination. Its a mandate not just the US but all nations. What it is made of does not reflect the face value.

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Stop asking these hard questions! 😂🤣

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After they removed Silver and Gold as “money” they just used a dollar value.
Very real money to me!!👍😊

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Government backed bullion coins do require features that deem them as investment products as well as legal tender providing some protection under the issuing countries currency laws.
Generally, the explicit presence of a denomination defines it as coin as opposed to the Round requiring a different standard. Though not not all countries follow this like the Mexican Libertad (doesn't have pesos) but the Mexican Central Bank will proclaim the value of the the Libertad on a periodic basis as the market demands.

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