TL;DR: Yes, most gold and silver bullion coins — like Canadian Maples and American Eagles — are legal tender. But their face value is symbolic, set far below the actual metal value. They’re not designed for spending. But their legal tender status also helps reinforce authenticity, recognisability, and global resale liquidity — which is one reason many investors prefer government-issued bullion coins over privately minted alternatives. This guide explains everything you need to know.
Table of Contents
- What Is a Legal Tender Bullion Coin?
- Examples of Legal Tender Coins
- Why Are Face Values So Low?
- Are Legal Tender Coins Actually Spendable?
- Pros and Cons of Legal Tender Bullion Coins
- When Do Legal Tender Coins Make Sense?
- Are Any Silver Coins Legal Tender in New Zealand?
- FAQs: Legal Tender Coins in NZ and Beyond
What Is a Legal Tender Bullion Coin?
A legal tender bullion coin is a precious metal coin issued by a government mint that has an official face value, such as $1 or $50. This means, in theory, it could be used to buy goods and services — just like any other currency issued by that country.
But in reality, these coins are designed for saving, not spending.
These are often referred to as:
- Non-Circulating Legal Tender (NCLT) coins
- Government-issued bullion coins
For thousands of years, gold and silver coins were used as real circulating money, with their face value closely linked to the precious metal they contained. Modern bullion coins still retain legal tender status today — but the relationship between face value and metal value has changed dramatically.
Examples of Legal Tender Coins
Here’s how the face value compares to the metal value of well-known coins:
| Coin | Face Value | Approx. Metal Value* |
|---|---|---|
| Canadian Silver Maple (1oz) | $5 CAD | $80 CAD |
| Canadian Gold Maple (1oz) | $50 CAD | $6,100 CAD |
| US Silver Eagle (1oz) | $1 USD | $70 USD |
| US Gold Eagle (1oz) | $50 USD | $4,500 USD |
| Perth Mint Gold Kangaroo (1oz) | $100 AUD | $6,700 AUD |
| Perth Mint Silver Kangaroo (1oz) | $1 AUD | $110 AUD |
*As of December 2025 spot prices.
These coins are legal tender in their countries — but no one would spend a $4,600 gold coin for its $50 face value.
Why Are Face Values So Low?
This is one of the most common — and confusing — questions.
Here’s the simplified answer:
Face value is set low on purpose to limit risk for the issuing government and highlight the coin’s investment purpose.
If a coin had a face value of $2,500 during high gold prices, but gold later crashed to $1,000, the government could be on the hook for the difference if the coin was redeemed. Keeping the face value low avoids this risk.
“Face value is basically a floor price the government guarantees to pay you — but they don’t want to set it too high.”
— Bron Suchecki, former Perth Mint executive
Are Legal Tender Coins Actually Spendable?
Technically, yes. But practically? No.
In most countries:
- Businesses aren’t required to accept non-circulating coins.
- Banks won’t redeem them for their full metal value.
- You’d be giving away real value by spending them at face value.
“Spending a 1oz gold coin for its $50 face value is like using a $1,000 banknote to buy a $5 coffee – and not getting change.”
You’ve just thrown away hundreds of dollars in real value.
These coins store wealth, not spend it.
However, during periods of monetary uncertainty, inflation, or declining trust in fiat currencies, many investors are drawn to legal tender bullion coins because they combine precious metal ownership with government-backed recognisability.
Pros and Cons of Legal Tender Bullion Coins
| Pros | Cons |
|---|---|
| Government-backed authenticity | Slightly higher premiums than bars |
| Highly recognised and easy to resell | Face value is meaningless in practice |
| Can be more liquid in a crisis | Not accepted for regular purchases |
| May receive favourable tax treatment in some countries | Can confuse new buyers without guidance |
When Do Legal Tender Coins Make Sense?
Legal tender gold and silver coins might be the right choice if you want:
- Recognisable, globally accepted bullion
- A mix of liquidity and collectability
- Coins that are easy to resell, even internationally
- A hedge against financial or currency collapse
- To gift or bequeath precious metals (face value may simplify estate matters in some jurisdictions)
In New Zealand, coins like the Silver Maple or Gold Kangaroo are particularly popular among first-time buyers and long-term holders alike.
So overall we’d say don’t pay too much attention to the face value or legal tender value of a coin.
Rather as we concluded in this article, consider instead how tradable or exchangeable a coin may be in the future.
Are Any Silver Coins Legal Tender in New Zealand?
Yes — NZ Post issues collectible silver coins that are technically legal tender in New Zealand. However, these are designed more for collectors than investors.
Here’s the difference:
- A 1oz NZ Post collectible coin might cost $185
- A 1oz bullion coin like a Silver Maple might cost $120
These collectible coins have high premiums due to design, limited mintage, and packaging — not the silver content.
Investor Warning: Unless you’re an experienced numismatist, we don’t recommend NZ legal tender collectible coins for wealth protection or investment.
Most investors are better off buying recognised bullion coins like Canadian Maples, US Eagles, or Perth Mint Kangaroos. These are globally trusted and easier to sell at fair market value.
Bars vs Legal Tender Coins: Which Is Better?
Here’s how they compare:
| Feature | Legal Tender Coin | Bullion Bar |
|---|---|---|
| Backed by government | ✅ | ❌ (Usually private mints) |
| Recognisability | ✅ High | 🟡 Medium |
| Face value | ✅ Yes (symbolic) | ❌ None |
| Premium over spot | 🟡 Slightly higher | ✅ Lower |
| Liquidity | ✅ Easier to resell | 🟡 Depends on brand |
| Storage | 🟡 Slightly bulkier | ✅ Efficient (especially for 1kg+) |
Want a deep dive? See our full Bullion vs Numismatic Coins Guide
Quick Recap: Should You Buy Legal Tender Gold or Silver Coins?
- Yes — but not for spending. These coins are legal tender in name only.
- Their face value is symbolic and far below the metal value.
- They’re globally recognised, trusted, and easy to resell.
- Ideal for wealth preservation, especially during uncertain times.
- Avoid collectible NZ legal tender coins unless you’re an expert — they often come with high premiums and little resale value.
FAQs: Legal Tender Coins in NZ and Beyond
Yes — many 1oz bullion coins are legal tender in their issuing country. But they’re not designed to be spent at face value.
It protects the government from risk if metal prices fall. It’s a symbolic value, not a reflection of true worth.
No New Zealand-minted bullion coins exist. But legal tender coins like Canadian Maples and US Eagles are globally recognised and easy to trade in NZ.
Yes — the British gold sovereign is legal tender in the UK. But it is often traded as bullion above its face value.
Officially, only coins issued by the Reserve Bank of New Zealand are legal tender here. But globally recognised bullion coins are still widely accepted by investors and dealers.
Yes. NZ Post issues collectible silver coins that are legal tender in NZ. However, these are designed for collectors, not investors. They usually cost significantly more than the silver they contain. We recommend sticking to bullion coins if your goal is wealth preservation, not collectability.
No. Gold certificates (paper claims on gold) are not legal tender and are considered a separate paper-based financial instrument.
No. Bullion coins would still trade based primarily on their precious metal content and market demand, not their symbolic face value. Historically, gold and silver have tended to retain purchasing power during periods of monetary instability.
Ready to Buy Legal Tender Silver Coins?
Explore our most popular silver coins:
Shop Legal Tender Silver Coins Now »
Or see our full range of gold bullion coins here
Further Reading
- Bullion vs Numismatic Coins Guide
- Silver Coins for Currency Collapse
- Gold Spot Price vs Face Value
- What is a Troy Ounce?
Final Thoughts
Legal tender coins offer a unique combination of trust, recognisability, and resale ease. While their face value is more symbolic than practical, these coins are a cornerstone for many gold and silver investors.
Want help choosing the right coin for your needs?
Call us on 0800 888 465 or Get a Quote
Editors Note: This article was first published on 9 August 2017. Fully updated 15 December 2025.
Glenn's dedication to educating individuals on wealth protection through precious metals has helped over 2400 clients from New Zealand, Australia, USA and Europe to safeguard their financial futures. Passionate about financial independence and lifestyle freedom, Glenn’s mission is to empower others with the knowledge and tools to thrive in today’s volatile economic environment. When he's not advising on precious metals, Glenn enjoys spending time with his family and pursuing outdoor adventures.
Education: University of Auckland Bachelor of Science
Linkedin: https://www.linkedin.com/in/glenn-thomas-0984a4310/
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What I want to know… Let’s say I’m traveling internationally. For the sake of example, let’s say I’m traveling between NZ and US, with more than $10k cash; I’d be required to declare it. Same thing if I’m traveling with more than $10k in gold bullion, I’d have to declare it.
But what if I’m traveling with ten “legal tender” gold coins, with a face value of $50. Am I traveling with “only” $500 “cash” (legal tender!) which does not have to be declared? Or am I traveling with $12k(US)/$16k(NZ) worth of gold, which does have to be declared?
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I’m curious about Atom’s question about declaring the face value when travelling internationally. Isn’t the face value of a sovereign coin all that country accredits the value?
Looks like we missed answering Atom’s question. Sorry Atom. We’d say it likely comes down to whoever the customs officer is you strike at the border. If you look at the currency declaration form you have to complete there is no mention of gold bullion on there. So you could make a good argument that you would have to declare any legal tender currency you have and so you could just declare it if the face value of the coins was over $10,000. However that is a risk to take, as if the coins then get discovered at the border and they take the view you should have declared the value , you run the risk of them being confiscated as stipulated on the currency declaration form. So given there is no GST on most gold and silver coins (except Krugerrands and Gold Eagles), you are likely safer to just declare them. Also make sure you have something proving the purity (although on most coins the purity is also stated on the coins). That’s our 10 cents on it anyway!
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Revisiting this article… There’s also a bit of history to this. Prior to about 1933 (Executive Order 6102) ≈1ozt gold coins were circulating with a face value of $20, and for a few years after that ≈1ozt silver coins were circulating with a face value of $1; this was an example of “commodity currency”, with the face-value and the melt-value essentially equal. Other countries had similarly valued “commodity currency” gold and silver coins in circulation. Following the advent of central banks issuing fiat currency, well, the rest is history.
Now the fiat currency (which is really “currency”, not really “money”) is actually a “legal tender” fiat “token” of value. Just like an arcade token may be a near worthless plastic disc with an arbitrary value stamped on it, so to are fiat currencies near worthless pieces of base metals or paper or polymer with arbitrary values stamped or printed on them.
token; noun; A token is a round flat piece of metal or plastic that is sometimes used instead of money; A token is a piece of paper or card that can be exchanged for goods, either in a particular shop or as part of a special offer (Collins)
Thanks Atom, yes good the face value of coins was indeed once tied to the actual metal value contained within them. So it’s likely the current face value of some coins is simply a continuation of what has always been stamped on them.
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