Gold coins

100-dollar-goldThe Commonwealth of Australia Constitution Act, section 115 states that:

A State shall not coin money, nor make anything but gold and silver coin a legal tender in payment of debts.

Gold Corporation, or more commonly known as the Perth Mint, was created by an act of Parliament, i.e. the Gold Corporation Act 1987. The Perth Mint is an London Bullion Market Association accredited gold refinery, and refines most of Australia’s gold production, plus gold from Asia and surrounding countries.

perth-mint-legal-tenderIn the Gold Corporation Annual Report 2008 - the words "legal tender" are used 17 times to describe the gold coins that are manufactured for investment or sale. On the left is one such incident.

 

 

The Australian Currency Act 1965 states the following:

Section 14A (1) : Coins of a denomination of $5 or more; or whose standard composition consists of, or includes, gold, silver or platinum;

Section 20 (2) : A tender of payment of money is a legal tender if it is made in coins that are made and issued under this Act and are of current weight:

 There can be little doubt that gold coins (like those issued by the Perth Mint) are in fact - legal tender.

 

The ASP will encourage the concurrent use of gold and silver coins in commerce - for the payment of any taxes or debt. The unhindered market price of gold and silver are barometers of the health of the national currency.