Dealer: Gold content not suitable for everyday use
The push for a new $2.50 anniversary coin is raising logistical and economic questions, particularly about whether such a coin could be used in everyday commerce.
The U.S. House unanimously approved legislation last week to make the $2.50 coins to commemorate the 250th anniversary of the signing of the Declaration of Independence.
The $2.50 for America’s 250th Act would authorize the U.S. Treasury to mint a collectible $2.50 commemorative coin this year. Rep. Robert Aderholt, R-Haleville, sponsored the bill.
The legislation also calls for a viability study on circulating a $2.50 coin for everyday use. Robert Bradley, an American Numismatic Association certified coin grader who runs Red Pawn at 2203 Woodward Ave. in Muscle Shoals, said gold coins are not used in general circulation today because their metal value far exceeds their face value.
Modern commemorative gold coins often contain about 4.2 grams of gold. With the spot price of 4.2 grams of gold on Friday being about $700, including dealer markups commemorative coins with this gold content can sell for up to $900.
Because of that, Bradley said it would not make financial sense to release a true gold $2.50 coin into everyday circulation.
Instead, if the Treasury moves forward with an everyday version, it would likely be made from a metal blend known as a clad composition. Clad coins use layers of less expensive metals to reduce production costs.
Aderholt
The 1976 Bicentennial quarters and half dollars were produced this way.
The collectible version, however, could still be struck in gold or silver, as current commemorative coins are. Those coins are sold directly to collectors and investors rather than distributed as everyday currency.
Bradley said the U.S. Mint could also follow a strategy it has used before to boost interest in coin collecting. In 2019 and 2020, the Mint released special West Point quarters into circulation. They looked similar to regular quarters but carried a small mint mark, making them scarce and desirable.
Under Aderholt’s bill, the U.S. Treasury secretary would also study whether a $2.50 denomination makes sense for modern commerce. The United States does not currently circulate any coin valued above $1.
The U.S. Mint already produces bullion coins such as the American Gold Eagle and American Buffalo, but those are legal tender in name only. Their gold content makes them worth far more than their stamped value, keeping them out of everyday transactions.
