Denomination higher than silver value.

[ManWithNoName]

Is it a good or bad deal, to purchase a coin, with higher denomination, than the silver value. 

Can´t see the meaning, unless its strictly for collectors.. The value gets lower, as inflation eats away, and in the end, theres only the spotprice left or??

https://royalmint.dk/shop/hm-queen-margrethe-254p.html

This coin is only 1 oz..

500 Danish, is about 66 Eur..

 

[TonyS]

It’s just an arbitrary value, in the UK it’s also a government backed tax dodge.

I could buy a beer at my local pub with a couple of £2 Britannia’s. The bar man would probably tell me to go home and sober up.

[ManWithNoName]

But why buy such coins, when the value goes down over time. Is the face value just "boosted" to make it more expensive and therefore a "rare" collecters coin? I dont get it..

Theres a french 500 euro coin (1 kilo silver), but it cost 2200 eur! Does anyone actually buy these?

 

[TeaTime]

It's been a long time since any coin had an intrinsic value higher than the declared face value.

(I'm one of the mugs who bought the £50 face value Britannia coin. Silver content worth ? About £9. Still, it's a lovely design).

Most mints stick a value on their silver coinage to make it 'legal tender'. In Britain the advantage to that is it becomes CGT free. The value is either based on 1950 precious metal prices * or is pretty much arbitrary.

* completely made up date - don't quote me !

[TonyS]

I don’t buy a coin for its face value. I’ve got a pocket full off coins I can exchange in the pub for a beer.

I buy a coin for either its aesthetic value or its value as bullion. Both of which are above the face value.

I have a jar full of pennies and tuppences. At the bank I’ll get £1 for 100 pennies, they have no value above their face value. (I would probably get more if I melted them in to a bar but that’s illegal in the UK.)