Question from a newbie regarding face values

Discussion in 'Numismatics' started by Drake181, Jul 23, 2019.

  1. Drake181

    Drake181 Active Member Silver Stacker

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    Hi everybody!

    In regards to the face value of australian precious metal coins; how is this decided? E.g a 1 oz silver coin has a demenomination of $1, why not $5 or $10?
     
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  2. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    It is a nominal amount and would never be considered a floor price. Occasionally the $200 gold coin and the State $10 coins were worth more as a coin than their metal value so governments look to a low value.

    Also if legal tender is counterfeited, Interpol will chase you around the world, whereas copying a round is just a copyright issue.
     
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  3. Cind3r

    Cind3r Active Member Silver Stacker

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    Sammysilvers response is "why" the coins have a value. Great response btw.

    "How" it is decided is basically by the mood of the treasurer. What ever she/he deems worthy at the time. Obviously there is more to it like treasury guidelines but by law the treasurer could make a coin to any value...

    Ref: https://www.legislation.gov.au/Details/C2016C01090

    14A Issue price of coins of certain denominations
    (1) Coins:
    (a) of a denomination of $5 or more; or
    (b) whose standard composition consists of, or includes, gold, silver or platinum; shall be issued at prices:
    (c) determined, in writing, by the Treasurer; or
    (d) calculated in accordance with a method determined, in writing, by the Treasurer.
     

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