I am wondering why has the world agreed that an ounce of gold is worth 50 U.S. dollars?
Even in other currencies this price stamped on the one ounce gold coin holds true. Like the chinese panda, 500 yuan which is basically, approximately 50 USD. And the silver ounce is worth 5 USD... or similare amounts in other currencies... if you stack, you know this... it's like price hasn't moved since the 1940's... what do the banks and governments know that we don't? Are they planning to confiscate it all for that amount for each coin?
Or would they just confiscate the gold and let us peasants keep our silver...?
It's really simple... The US Mint simply wants to set a face value that is low enough that it's sure will never come into play. (I.E. market gold price should never drop below $50/oz.)
If the market gold price ever drops below the face value, the US government would be subsidizing owners of these coins, something it probably really doesn't want to do!
When the market gold price is above the face value, the coin trades like it should, as gold, not legal tender.