# Why is the face value of gold coins less than the actual value? **URL:** \ **Category:** Factual Questions\ **Created:** [May 7, 2007, 10:09pm UTC](https://boards.straightdope.com/t/why-is-the-face-value-of-gold-coins-less-than-the-actual-value/403161 "2007-05-07T22:09:51Z")\ **Posts on this page:** 5\ **Page:** 1
**Author:** ![furryman](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/furryman/32/99_2.png) [@furryman](https://boards.straightdope.com/u/furryman)\ **Post date:** [May 7, 2007, 10:09pm UTC](https://boards.straightdope.com/t/why-is-the-face-value-of-gold-coins-less-than-the-actual-value/403161/1 "2007-05-07T22:09:51Z")
The other day there was an article about Canada producing a giant gold coin to help advertise their regular size gold coins. The face value of the coin was much less than the actual gold value. How come? ---
**Author:** ![groman](https://avatars.discourse-cdn.com/v4/letter/g/73ab20/32.png) [@groman](https://boards.straightdope.com/u/groman)\ **Post date:** [May 7, 2007, 10:46pm UTC](https://boards.straightdope.com/t/why-is-the-face-value-of-gold-coins-less-than-the-actual-value/403161/2 "2007-05-07T22:46:38Z")
[QUOTE=furryman] The other day there was an article about Canada producing a **giant gold coin** to help advertise their regular size gold coins. The **face value of the coin was much less** than the actual gold value. How come? [/QUOTE] What am I missing here? It’s a giant gold replica of smaller coins. Would you like them to mind a giant coin that is of different denomination to adjust for value increase? ---
**Author:** ![Airman\_Doors\_USAF](https://avatars.discourse-cdn.com/v4/letter/a/e36b37/32.png) [@Airman\_Doors\_USAF](https://boards.straightdope.com/u/Airman_Doors_USAF)\ **Post date:** [May 7, 2007, 10:55pm UTC](https://boards.straightdope.com/t/why-is-the-face-value-of-gold-coins-less-than-the-actual-value/403161/3 "2007-05-07T22:55:23Z")
Apparently legal tender is not subject to duties if you cross borders. [ > [@](#): > > Q. Are bullion coins legal tender? > > A. Yes, if they are government issued bullion coins with a face value. This nominal face value allows the coins to travel across national borders without the taxation or fees otherwise imposed by many countries on bullion itself. ]([http://www.nwtmintbullion.com/articles\_faq.php](http://www.nwtmintbullion.com/articles_faq.php)) ---
**Author:** ![gotpasswords](https://avatars.discourse-cdn.com/v4/letter/g/c57346/32.png) [@gotpasswords](https://boards.straightdope.com/u/gotpasswords)\ **Post date:** [May 7, 2007, 11:11pm UTC](https://boards.straightdope.com/t/why-is-the-face-value-of-gold-coins-less-than-the-actual-value/403161/4 "2007-05-07T23:11:20Z")
At today’s “spot” close of 687.95 (US), the $1mm Canadian coin is composed of 2,211,759 (US ) worth of gold - 3215 troy ounces of 99999 fine gold. At today’s exchange rates, that seems to come out to $1,997,975 (CDN) or a nearly 2:1 intrinsic value to face value. Paging **samclem** … This is completely upside-down compared to regular coins that should to be intrinsically worth much less than face value\*. What’s keeping well-heeled people from snapping these things up and selling them as scrap on the spot market? - The US quarter has an intrinsic value of about seven cents, and the dime has an intrinsic value of less than three cents. Pennies (1982 to current) are nearly a wash - their intrinsic value is .996 cents each. ---
**Author:** ![yabob](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/yabob/32/2821_2.png) [@yabob](https://boards.straightdope.com/u/yabob)\ **Post date:** [May 7, 2007, 11:19pm UTC](https://boards.straightdope.com/t/why-is-the-face-value-of-gold-coins-less-than-the-actual-value/403161/5 "2007-05-07T23:19:15Z")
[QUOTE=gotpasswords] At today’s “spot” close of 687.95 (US), the $1mm Canadian coin is composed of 2,211,759 (US ) worth of gold - 3215 troy ounces of 99999 fine gold. At today’s exchange rates, that seems to come out to $1,997,975 (CDN) or a nearly 2:1 face value to intrinsic value. Paging **samclem** … This is completely upside-down compared to regular coins that need to be intrinsically worth much less than face value. What’s keeping well-heeled people from snapping these things up and selling them as scrap on the spot market? [/QUOTE] Because the mint doesn’t sell them at face value. Bullion coins are sold at prevailing market prices. Note that they refer to the face value as “nominal”. American Gold Eagles, for instance, are 1 ounce of gold and are denominated at $50. The Gold Eagle: > **[American Gold Eagle](https://en.wikipedia.org/wiki/American_Gold_Eagle)** > > The American Gold Eagle is an official gold bullion coin of the United States. Authorized under the Gold Bullion Coin Act of 1985, it was first released by the United States Mint in 1986. Because the term "eagle" also is the official United States designation for the pre-1933 ten dollar gold coin, the weight of the bullion coin is typically used when describing American Gold Eagles (e.g., "1/2-ounce American Gold Eagle") to avoid confusion with the pre-1933 coins. This is particularly true with ... > [@](#): > > (As of January 1, 2006 the $5, $10, $25, and $50 coins by face value are worth and sell for about $75, $150, $300, and $600 USD respectively. Their actual selling prices vary daily based on the current spot price of gold.) As of today, they’re worth more than that.