Legal Tender

Legal tender means a coin is official money issued under government authority and carries a face value denominated in the national currency. American bullion coins are legal tender of the United States, struck by the US Mint under authorizing legislation.

Every modern US bullion coin carries a stated face value. The one-ounce American Gold Eagle is denominated $50, the one-ounce American Silver Eagle is denominated $1, and the one-ounce American Gold Buffalo is denominated $50. Those denominations are struck onto the coins themselves. They sit far below the value of the metal in the coin, and no one buys or sells these coins at face value.

What legal-tender status actually gives a buyer is provenance. The coin is a government product with a weight and purity guaranteed by the issuing mint, which is why dealers can trade these coins on sight without assay. It also matters for how the coins are treated under certain statutes, including retirement account rules.

What it does not mean is that the face value sets a floor, a redemption price, or a guarantee of any kind. Legal tender is a legal classification, not a valuation.

Educational information only, not tax or legal advice. Texas Bullion Exchange does not provide tax or legal advice — confirm your own situation with your tax professional.

Call 855-344-2646 to speak with a Texas Bullion Exchange specialist about US legal-tender bullion.