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?
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.
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.
