Why is legal tender status a good thing?

S

SteveS

Member
I'm in the research phase before starting to buy. ATM, I'm thinking a mix of bars and coins would be good but, in the course of my interwebbing, I hear that coins having 'legal tender status' are good to hold, even though a coin costing $32 might have a tender value of just $1.

I don't get it. I'd be gutted if I ever had to accept face value. Is there some other advantage?
 
The advantage lies in others believing it's an advantage.

The closest coin with at least a half decent legal tender value would be the Oz $200 coin.
Others?
 
The stable price range of silver from 1800 - 1980 was $1.00 up to around $5.00/ ounce.

Based on historical price charts the '1980's government minted 1oz silver bullion coins were priced at a historically correct "stable" price.

Revaluing it up to what we now consider to be a stable price - should they up it to $15?

Has there been a stable price through the 80's, 90's up to today? Should they up it $30?

Lookout! people might start believing it is money again - can't have that now can we!
 
SteveS said:
I'm in the research phase before starting to buy. ATM, I'm thinking a mix of bars and coins would be good but, in the course of my interwebbing, I hear that coins having 'legal tender status' are good to hold, even though a coin costing $32 might have a tender value of just $1.

I don't get it. I'd be gutted if I ever had to accept face value. Is there some other advantage?
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Assuming you buy from a reputable dealer and it is genuine- no advantage other than government guaranteed weight and purity.

The guarantee is probably essential for some types of superannuation funds. Keep your purchase invoices secure.
 
Trident said:
Has there been a stable price through the 80's, 90's up to today? Should they up it $30?

Lookout! people might start believing it is money again - can't have that now can we!
Click to expand...

Be a jackpot for many coin collectors, when people who don't know the numi value and hand them in to the bank who will likely send them back to PM for $30. PM likely melt it, if they tried to resell it collectors will be up at arms.

As for government, they don't care if it is silver, gold, plastic or seashells.

Lastly be very tricky for Perth Mint business, if silver was $21 and they were trying to sell it for $30. PM couldn't sell it below legal tender.
 
If someone manufactures and sells a copy of a bar or a round it is a copyright infringement. If someone manufactures a copy of a legal tender coin it is counterfeiting and a felony.
 
Canadian $10 coins have 1.4 oz odd silver in them (by memory) and you can often pick them up cheap.
I also like the Aussie $10 state coins , but spanner thinks i am paying to much for them if i fork out $18NZD.
Spanner could be right , but that would be my top end for them .
 
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