Silver Face

Posted in Electronics by admin on February 16, 2011 No Comments yet

What is the point of face value in gold/silver coins?

im looking to buy gold and silver and i just dont get what is the point in the face value. does it mean if the gold drops under $50 (thats the face value of the american eagle gold coin) then the coin will be worth $50 or +$50 or none of the above?

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.

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