As I understand it, this is fairly silly.
The coins are worth less as metal than they are as coins. If you want to invest in gold you should just buy gold. The whole reason the government sells these coins is because people tend to collect them rather than spend them which means that the difference between cost of production and face value is all strictly profit for the government.
Not that I object to the government collecting some hefty non-tax revenue in the midsts of its growing deficits.
The coins are worth less as metal than they are as coins. If you want to invest in gold you should just buy gold."
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I'm thinking that you are thinking of something different than what we are talking about. (No offense, I hope).
We aren't talking about collectors coins, we are talking about government issued bullion coins.
There IS a premium on them, but not like collectors coins, be they either circulating coins of old, or special minted coins like proofs.
Some people prefer the government minted bullion coins as they are more difficult to fake than refiners bullion bars. and available in smaller denominations than the refiners bars.... It is easier to trade a 1/10th oz gold coin for a box of bullets than a ten ounce bar, and expecting ome gold or silver coins in change.
So, people are willing to pay a premium above actual value for the Govt's promise of purity and convenience in trading.
The coins are worth less as metal than they are as coins
Well, this is true. OTOH, what if paper money is mostly devalued and credit money is worthless. What makes a better medium of exchange than a gold or silver struck coin? They're certainly more convenient than little gold or silver bars. You don't need a lot, just a few OZ in tenths for the bug-out-bag....