Are gold coins worth their face value?
This is a very interesting question. Gold coins are indeed worth their gold content, but what is gold worth as of today? What could have changed the value of gold? There was a bill passed several decades ago that has changed the price of gold coins forever.
The current going rate for gold is around $1,200 for a troy ounce. Gold is valuable resource and has been to many civilizations for centuries. Gold has been the major form of currency in many cultures as far back as the time when Lydia (modern day Turkey) forged the first gold coins. The price of gold has been on a steady rise since 1974 after the price dropped to an all time low.
Back in 1933 President Roosevelt passed a bill which allowed the US Government to confiscate all the gold within the states. The common form of currency was replaced with paper money of multiple denominations. The gold coins were melted down and stored in the Federal Reserve. The bill made it illegal for US citizens to buy gold coins or bullion within the nation. The bill was later revoked by Congress in 1977, because the influence it had on the price of gold was negative. The common form of currency was never switched back. As a result the prices of the gold coins that did survive increased. Gold is still considered legal tender though, because they never changed the underlining laws. What this means is that gold can technically still be used to clear any debt, but the price of the coins face value is not the coins actual worth. The prices of those coins that predate 1934 are significantly higher then what the face value portrays. An unfortunate side-effect is that if the US Government ever decides to reinstate the bill, the gold coins will be recalled, but you will only be compensated for the face value of the coins, not the actual worth based on rarity or history. If you need money don’t spend your gold coins, you would be better off if you sell gold coins to make the cash you need and spend that.