Hypothetical question: If you have a coin thats once ounce of pure gold, but has $20 dollars legal tender value engraved on it, how much is it worth in it’s current form? $1317 (current price of gold) or $20.00 as the value says?
$1316.99… when you rub off the $20 sign
probably right
Depends on how you “spend” it.
If you take it to a coin shop or a gold place, and are selling it for the value of the gold, or the collectibility of the coin, you will get market value.
However, if you are using it as “legal tender”, say you take it into a bank and want to exchange it for bills or for another currency, the bank is only obligated to give you what the face value of the coin is.
I see…
Sell it as scrap gold on eBay and you’ll get very near $1,317.
It’s worth whatever someone else will give you for it. Some people are looking to acquire gold and will gladly exchange lots of dollars for it. Other people are only looking to acquire dollars and don’t want the hassle and liability of accepting payments in elemental form.
US Customs will likely consider it to be $1317.
Bear in mind, though, that actual $20 gold pieces (double eagles) were only 90% gold.
For example, if I pay you with a $20 gold coin, the IRS says you have just been paid about $1300.
But if you pay your taxes with it, it’s only worth $20.
(There’s an Alice in Wonderland line somewhat similar to this.)
When my daughter was young, I bought her a $20 gold coin in excellent condition. With many people cashing in their gold coins due to the price of gold, will gold coins increase in value for collectors. There is less in circulation, so the value will go up? Is it possible that they will be worth more than the price of gold one day?
Like they said, it’s worth what someone will pay you for it. Inherent in its current form is its convertibility into other forms, and someone will surely be willing to pay you nearly what it’s worth when taking that convertibility into account.
So (value to buyer) = (value of gold in the coin, as gold) - (cost to buyer of separating the gold from whatever else is in the coin).
The worth of the coin to you, the seller = (value to buyer) - (buyer’s profit margin).
What year does it say on it?
Ah, someone else who read the foreword to Overstreet’s Comic Book Price Guide. 
Depends on condition and rarity, but at minimum it’s worth the current bullion value of the gold in it (US gold coins were 90% gold and 10% copper).
If it is a collectible coin and not a bullion coin, it may be worth more than the spot value of the gold it contains.
Rubbing on it would be one of the stupidest things you could do.
If it is a collectible coin, which it probably is, selling it for scrap would not be a very smart thing to do.
BTW, if this hypothetical coin is dated 1933, please contact me privately. I’ll arrive with $2000 cash to pick it up.
If we’re bidding on a (genuine) 1933 coin, I’ll raise the bid to $2100!
[QUOTE=JohnGalt]
If we’re bidding on a (genuine) 1933 coin, I’ll raise the bid to $2100!
[/QUOTE]
Then how do you plan to sneak it out of the country before the Secret Service catches on?