Getting $50 "legal tender" gold coins from a bank?

[jstmike]

I've been thinking about this.

According to the Constitution:


Section 8 - Powers of Congress

...

To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;



Section 10 - Powers prohibited of States

No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.



Sec. 5103. Legal tender

United States coins and currency (including Federal reserve notes
and circulating notes of Federal reserve banks and national banks) are
legal tender for all debts, public charges, taxes, and dues. Foreign
gold or silver coins are not legal tender for debts.


Sec. 5112. Denominations, specifications, and design of coins

(a) The Secretary of the Treasury may mint and issue only the
following coins:
(1) a dollar coin that is 1.043 inches in diameter.
(2) a half dollar coin that is 1.205 inches in diameter and
weighs 11.34 grams.
(3) a quarter dollar coin that is 0.955 inch in diameter and
weighs 5.67 grams.
(4) a dime coin that is 0.705 inch in diameter and weighs 2.268
grams.
(5) a 5-cent coin that is 0.835 inch in diameter and weighs 5
grams.
(6) except as provided under subsection (c) of this section, a
one-cent coin that is 0.75 inch in diameter and weighs 3.11 grams.
(7) A fifty dollar gold coin that is 32.7 millimeters in
diameter, weighs 33.931 grams, and contains one troy ounce of fine
gold.
(8) A twenty-five dollar gold coin that is 27.0 millimeters in
diameter, weighs 16.966 grams, and contains one-half troy ounce of
fine gold.
(9) A ten dollar gold coin that is 22.0 millimeters in diameter,
weighs 8.483 grams, and contains one-fourth troy ounce of fine gold.
(10) A five dollar gold coin that is 16.5 millimeters in
diameter, weighs 3.393 grams, and contains one-tenth troy ounce of
fine gold.

So the above shows that the $50 gold coin as we know is legal tender and the value they set on that coin is $50. Coins can't be legally melted or shipped overseas. For example our nickel is worth about $.10 if it could be melted and we can go into a bank and trade in a dollar in get 20 nickels.

Well shouldn't we be able to go into a bank and exchange $50 FRN and get a $50 gold coin in return? Now wouldn't that be a kick?

Maybe I should put my order in?

[Lexx78]

you can always try that, but I don't think they will do it, mainly because they don't have the gold anymore.

Here the ECB has sold 6 billion of gold reserves and it pumps 100 Billion in the market, just to keep THEIR dollar alive :rolleyes:

[jstmike]

Our US Mint makes as many as the market needs as ordered by Congress. Here are the current "legal tender" gold coins:

http://www.nwtmintbullion.com/gold_americaneagle.php

[Corydoras]

That's what silver certificates were about, and eventually they cancelled them.

[Bradley in DC]

The downtown Geneva Swiss banks do, he types from experience. :D

[Arek]

Hmm paying $800.00 for a coin that you can only use for $50.00 I see this as profiteering, I think the Mint needs to be taken to court. I mean thats one of the reasons they raided the Liberty Dollar was because they were "profiteering" So I believe we ought to sue the mint for profiteering.

[fsk]

You can only use it for $50 as "legal tender". There are people willing to pay you the fair market price, but as a collectible not as "legal tender".

[Fox McCloud]

a particular senator (or was it a congressman?) made a huge stink about this back in the 20's, when all the gold was confiscated from the American people. He walked into a bank, slapped down some money on the counter and demanded gold (he was quite irate about it). They, of course, kept denying him the gold, and coming up with excuses, but he held his ground, and eventually was able to get his gold.

Of course, the stupid history book made it sound like (IIRC) that his line of thinking was misguided/stupid/irrational/not the norm. *sigh* how badly our history books have been manipulated.

[Dr.3D]

Here is another angle where the low face value of the Gold and Silver currency was used against the IRS.

An employer paid his employees with gold and silver currency and only reported the face value to the IRS as what was paid. The company and employees thus didn't have to pay income taxes because they didn't get paid enough to have to.

The case went to court and the company won against the IRS.

Here is the link:

http://portland.indymedia.org/en/2007/10/366287.shtml