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View Full Version : Why do Silver Eagles have such a low face value?



Ardent Listener
9th March 2006, 03:17
Why do American Silver Eagles have onlly $1.00 face value? With the price of silver near $10.00 today, I would think that at least a $5.00 face would be used. After all, the goverment prints a lot of dollars every day. Why not just put a $5.00 face on the Silver Eagles and increase the demand for them?

Ardent Listener
12th March 2006, 02:38
:idea: To try to answer my own question; perhaps it is because by doing so the goverment would only encourage the silver market even more so than it now is. Something it really dosen't want to do.

7nomads
15th March 2006, 08:08
The face value of the Silver Eagle is one fiftith of a Gold Eagle one ounce. The ratio of 50 to 1. My thought is that if and when the hyper inflation starts in America they will do what other countries will do and will issue a new currency will most of the zeros dropped. For example Israel about 20 years ago, dropped the Shekel for the New Shekel. The only difference was that all the old bill had three zeros dropped. The 10,000 shekel bill became the new 10 shekel bill. They didn't even bother to change the color or portrait of the bills.

So when and if hyper inflation comes to america and gold is at $5000 and Silver $100 then the usa prints new currency with a couple of zeros off and the eagles will be at face value.

The only problem is that our government in 1986 didn't take into account the sacricity of silver cause by all the new uses for it. I believe silver will hit $100 long before gold hits $5000.

Ardent Listener
19th March 2006, 18:02
Good theory. :wink:

Silver Bull
17th June 2006, 23:30
Traditionally silver coins in the US have never been marked at more than one dollar. Any higher denominations have been made of gold, and more recently platinum.

Ardent Listener
18th June 2006, 16:09
Traditionally silver coins in the US have never been marked at more than one dollar. Any higher denominations have been made of gold, and more recently platinum.

I see. But that was when a dollar was a dollar. Times have changed.

Silver Bull
18th June 2006, 22:36
Traditionally silver coins in the US have never been marked at more than one dollar. Any higher denominations have been made of gold, and more recently platinum.

I see. But that was when a dollar was a dollar. Times have changed.

Last time I checked a dollar is still a dollar. It just won't buy you much anymore. The key word, or the form thereof, is "tradition". Most people, especially lawmakers, which is who would have to make such a change, are ingrained with tradition to the point they are very reluctant to change anything from former lawmakers. And the longer standing the tradition, the more hesitant they become. The minting of US dollars has been as sporatic at best (1794-1803, 1836-1904, 1921-1935, 1971-1981, 1999-Present). Besides, I don't believe the Eagle is an "official" US coin. It is still considered "bullion" and therefore the dollar designation symbolic. Much like any of the many "silver dollar" commemoratives floating around out there. I don't believe any coin official, bullion or commem has been minted by the US government with a "value" denomination above one dollar.

buff
19th January 2007, 22:39
The government has tried a few times to cerculate a silver dollar coin. As long as the price of silver was less than one dollar per ounce the coins would circulate as money and the government made a profit by selling an ounce of silver at a price above market...the same way it sells base metals at a profit in the form of coins today. But when the price of silver went over a dollar per ounce the coins were melted down into bullion. The result would be an increased coinage of silver dollar coins at a cost of more than one dollar or a shortage of the coins from a lack of coinage at higher silver prices. To combat this problem the government kept reducing the percentage of silver in coins until it finally stopped coining silver. This is why American silver eagles have a face falue of only one dollar. The government does not expect the price of silver to go below a dollar again. In this way it avoids the risk of coins melted back into bullion.

buff
19th January 2007, 22:44
Why not just put a $5.00 face on the Silver Eagles and increase the demand for them?

How much demand will there be for an American eagle when the price of silver goes below $5.00 per ounce as it has so many times in the past and will be again?

oroborean
20th January 2007, 08:29
How much demand will there be for an American eagle when the price of silver goes below $5.00 per ounce as it has so many times in the past and will be again?

i know i'd be buying every single one i could get my hands on.

buff
20th January 2007, 10:05
i know i'd be buying every single one i could get my hands on.

There is a strange psychology that goes with silver buying. I have never seen so many people rushing to buy high only to sell low.

Ardent Listener
23rd January 2007, 16:33
The government has tried a few times to cerculate a silver dollar coin. As long as the price of silver was less than one dollar per ounce the coins would circulate as money and the government made a profit by selling an ounce of silver at a price above market...the same way it sells base metals at a profit in the form of coins today. But when the price of silver went over a dollar per ounce the coins were melted down into bullion. The result would be an increased coinage of silver dollar coins at a cost of more than one dollar or a shortage of the coins from a lack of coinage at higher silver prices. To combat this problem the government kept reducing the percentage of silver in coins until it finally stopped coining silver. This is why American silver eagles have a face falue of only one dollar. The government does not expect the price of silver to go below a dollar again. In this way it avoids the risk of coins melted back into bullion.

Risk? I got news for you buff, Silver Eagles are bullion already and never were intended for general circulation. My point was Canada has a $5 face on their one ounce silver piece. Why not the U.S. too?

Ardent Listener
23rd January 2007, 16:34
There is a strange psychology that goes with silver buying. I have never seen so many people rushing to buy high only to sell low.

Silver not going to go lower than $5.00 per ounce my friend. You can quote me on that. $5.00 silver would be buying low for sure.

Bill
27th January 2007, 11:44
Risk? I got news for you buff, Silver Eagles are bullion already and never were intended for general circulation.

I believe you have just answered your own question here. They were never intended for circulation. So why should it matter if it is tagged as $1? Even if they tagged it as a $5 coin, it's still misleading. What if they did do this now? Let's say the US mint decides to lable their 2008 SAEs as $5 coins. Now let's say silver reaches $60/oz (just a number I pulled out of my ass here, not any kind of prediction) by 2012. Suddenly, that $5 lable they changed to is still unfair. Would you want them to change it again? Perhaps to a $25 coin? Then, you'd have the $1, $5, and $25 silver eagles, all of which have the same amount of silver in them, floating around the world. It merely adds to the confusion. Now, let's say the silver bull hangs up its horns and decides to rest for a while. Let's say by 2000whatever (Pick a year. It really doesn't matter) silver drops down below whatever dollar value the mint decided to stamp on their coins only a few years earlier. Since SAEs are technically "legal tender", their metal content is actually valued at less than what is stamped on it. What happens then? My point is that SAEs could be marked as $.01 and I still wouldn't care. Silver is silver. I don't care about what $ mark is stamped on it.

Ardent Listener
29th January 2007, 18:17
Risk? I got news for you buff, Silver Eagles are bullion already and never were intended for general circulation. My point was Canada has a $5 face on their one ounce silver piece. Why not the U.S. too?


You failed to include the rest of my point with your quote. If it dosen't cost a cent more to do so, why not, like Canada, put them at $5.00. It might not make any difference to you, but I know a lot of people buy the Mapleleafs because of their higher face value.

goldminer
21st September 2007, 19:57
"Why do ASE's have such a low face value..."

Because (1) U.S. Congressmen and Congresswomen together with the private cartel of wealthy banksters who are the Federal Reserve, feel guilty and ashamed of all the now comparatively worthless FRN's they've been passing off as "dollars", and (2) the U.S. Coin Act of 1792 defines a "dollar" as 371.25 grains of pure silver (and this is how much silver an ASE contains) which makes it a REAL dollar???

Sarcasm....sarcasm...sarcasm.... :)

Prospector
25th January 2008, 05:57
A eagle is an ounce of silver, not a unit of currency. The face value is meaningless, except that it makes it a crime to copy it.

goldminer
26th January 2008, 08:03
Posted by Silver Bull:

"Last time I checked a dollar is still a dollar..."

Wrong.

A U.S. dollar hasn't been a U.S. dollar since the 1960's when the dollar link to silver was severed by presidential order.

The Coinage Act of 1792 clearly defines a U.S. dollar as a coin containing 371 and 1/4 grains of pure silver (the precise amount contained in every silver dollar struck in the U.S. up to 1935. This definition has never changed.

All the sheeples have been conned into believing that a Federal Reserve Note with the number "1" on it is a "dollar".

Not so. A Federal Reserve Note is just that: a note or a piece of paper printed at the request of and distributed by, the cartel of very rich private bankers who call themselves "The Federal Reserve" (or "the Fed"). This group pays to have these notes printed at the cost of a just few cents and in turn lend it to other banks and lending institutions down the feeding chain AND TO THE US GOVERNMENT, and sit back and collect billions of dollars in interest on the "money" loaned.

The federal reserve act and the federal reserve system and it's body or "board" (and the U.S. Congress & President) conduct the largest financial scam ever perpitrated on a population.

The national debt is a huge scam. It's federal government debt resulting from monies the federal government borrowed from the federal reserve.

It is reported that the for the 1st quarter period (Jan-Mar.) of 2006, the federal government paid $2,000,000,000 (that's BILLION) dollars in interest on this debt, to this cartel of wealthy private bankers.

The federal government has no money...not a single dime. The dollars paid in interest are hard earned tax dollars sucked out of citizens.

Think your income tax dollars are collected by the government to pay for services povided to citizens? Guess again!

If the federal government printed and distributed our currency as should be the case, there would be no such thing as a "national debt". It's all a huge scam.

Google search "The Federal Reserve "; read about it's origins from a meeting held on Jeckell Island off the coast of Georgia in 1911...and how the act was pushed through a few members of Congress who didn't even read it, on December 23rd, 1913.

JesterJay
26th January 2008, 12:45
WHY?

confused in South Dakota,
JesterJay



You failed to include the rest of my point with your quote. If it dosen't cost a cent more to do so, why not, like Canada, put them at $5.00. It might not make any difference to you, but I know a lot of people buy the Mapleleafs because of their higher face value.