Face Value

The nominal value given to legal tender coin or currency. Historically under the gold standard, gold coins were used as a medium of exchange at their fixed face value. But many modern bullion coins or special issues have a face value that may be more or less than the actual value of the coin in terms of its gold content. The one ounce Britannia bullion coin has a face value of £100, less than half the value of the gold within; the United States’ Eagle one ounce bullion coin has a face value of only £50, one-fifth or less of the value of the gold. By contrast, the Japanese 20 gram Hirohito coin issued in 1986 had a face value of 100,000 yen but contained only 40,000 yen worth of gold.