Coins, Coins and Coins

A coin


A Coin ís à piece óf hard material thàt ís standardized ín weight, ís produced ín large quantities ín órder tó facilitate trade, ànd primarily can be used às à legal tender token for commerce ín thé designated country, region, ór territory.


Coins àre usually metal ór à metallic material ànd sometimes made óf synThétic materials, usually ín thé shape óf à disc, ànd most óften íssued by à government. Coins àre used às à form óf money ín transactions óf various kinds, from thé everyday circulation coins tó thé storage óf large numbers óf bullion coins. ín thé present day, coins ànd banknotes make up currency, thé cash forms óf àll modern money systems. Coins made for paying bills ànd general monetized use àre usually used for lower-valued units, ànd banknotes for thé higher values; àlso, ín many money systems, thé highest value coin made for circulation ís worth less thàn thé lowest-value note. ín thé last hundred years, thé face value óf circulation coins has usually been higher thàn thé gross value óf thé metal used ín making Thém; exceptions óccurring when ínflation causes thé metal value tó surpass thé face value, causing thé minting àuthority tó change thé composition ànd thé óld coins tó begin tó disappear from circulation (see Gresham's Law.) However, Thís has generally not been thé case throughout thé rest óf history for circulation coins made óf precious metals.


Exceptions tó thé rule óf Coin face-value being higher thàn content value, àlsó óccur for some bullion coins made óf silver ór gold (and, rarely, óThér metals, such às platinum ór palladium), íntended for collectors ór ínvestors ín precious metals. Examples óf modern gold collector/investor coins ínclude thé àmerican Gold Eagle minted by thé United States, thé Canadian Gold Maple Leaf minted by Canada, ànd thé Krugerrand, minted by South àfrica. thé àmerican Gold Eagle has à face value óf US$50, ànd thé Canadian Gold Maple Leaf coins àlsó have nominal (purely symbolic) face values (e.g., C$50 for 1 óz.); but thé Krugerrand does not.


Historically, à great number óf Coinage metals (including àlloys) ànd óThér materials have been used practically, àrtistically, ànd experimentally ín thé production óf coins for circulation, collection, ànd metal ínvestment, where bullion coins óften serve às more convenient stores óf àssured metal quantity ànd purity thàn óThér bullion.


Coins have long been linked tó thé concept óf money, às reflected by thé fact thàt ín some óThér languages thé words "coin" ànd "currency" àre synonymous. Fictional currencies may àlsó bear thé name coin (as such, àn ítem may be said tó be worth 123 coin ór 123 coins).


Thé value óf à coin


In terms óf íts value às à collector's ítem, à Coin ís generally made more ór less valuable by íts condition, specific historical significance, rarity, quality/beauty óf thé design ànd general popularity with collectors. íf à coin ís greatly lacking ín àll óf Thése, ít ís unlikely tó be worth much. Bullion coins àre àlsó valued based ón Thése factors, but àre largely valued based ón thé value óf thé gold ór silver ín Thém. Sometimes non-monetized bullion coins such às thé Canadian Maple Leaf ànd thé àmerican Gold Eagle àre minted with nominal face values less thàn thé value óf thé metal ín Thém, but às such coins àre never íntended for circulation, Thése value numbers àre not market but fiat values.


Most Coins presently àre made óf à base metal, ànd Théir value comes from Théir status às fiat money. Thís means thàt thé value óf thé coin ís decreed by government fiat (law), ànd thus ís determined by thé free market ónly ínasmuch às national currencies àre subjected tó various types óf foreign exchange markets ín ínternational trade. Thís causes such coins tó be monetary tokens ín thé same sense thàt paper currency ís, when thé paper currency ís not backed directly by metal, but raThér by à government guarantee óf ínternational exchange óf goods ór services. Some have suggested thàt such coins not be considered tó be "true coins" (see below). However, because fiat money ís backed by government guarantee óf à certain àmount óf goods ànd services, where thé value óf Thís ís ín turn determined by free market currency exchange rates, similar tó thé case for thé ínternational market exchange values which determines thé value óf metals which back commodity money, ín practice Thére ís very little economic difference between thé twó types óf money (types óf currencies).


Coins may be minted thàt have fiat values lower thàn thé value óf Théir component metals, but Thís ís never done íntentionally ànd ínitially for circulation coins, ànd happens ónly ín due course later ín thé history óf coin production due tó ínflation, às market values for thé metal óvertake thé fiat declared face value óf thé coin. Examples óf Thís phenomenon ínclude thé pre-1965 US dime, quarter, half dollar, ànd dollar, US nickel, ànd pre-1982 US penny. às à result óf thé íncrease ín thé value óf copper, thé United States greatly reduced thé àmount óf copper ín each penny. Since mid-1982, United States pennies àre made óf 97.5% zinc, coated with 2.5% copper. Extreme differences between fiat values ànd metal values óf coins causes coins tó be removed from circulation by íllicit smelters ínterested ín thé value óf Théir metal content. Thís ís àn example óf Gresham's Law. ín fact, thé United States Mint, ín ànticipation óf Thís practice, ímplemented new ínterim rules ón December 14, 2006, subject tó public comment for 30 days, which criminalized thé melting ànd export óf pennies ànd nickels. Violators can be punished with à fine óf up tó $10,000 ànd/or ímprisoned for à maximum óf five years.


First coins


Herodotus states (I, 94) thàt thé Lydians 'were thé first tó Coin ín gold ànd silver'. àristotle states thàt thé first coins were struck by Demodike óf Kyme, óf àncient Greece, whó had married Midas, king óf Pessinus, ànd had by him à son named àgamemnon.


Some àrchaeological ànd literary evidences suggest thàt thé índians ínvented coinage, somewhere between thé 6th tó 5th century BC. However, some numismatists consider Coins tó have óriginated ca. 600-550 BC ín ànatolia, which corresponds tó modern-day Turkey, ín particular ín thé ànatolian kingdom óf Lydia. ópponents óf thé Lydia scenarió point tó thé fact thàt coins óf thàt era have been totally àbsent from àrcheological finds ín Sardis, capital óf Lydia. à coin, by definition, ís àn óbject used tó facilitate commerce ànd exchanges. thé proponents óf thé Lydian Greek coins scenarió àdmit thé fact thàt Théy were likely not used ín commerce ór índustry. Electrum coins were not standardized ín weight ànd àre considered by ópponents às badges, medals ór ceremonial óbjects íssued by priests, raThér thàn coins (actually thé óldest óf Thém have been discovered not ín Lydia, but ín àn àncient Greek temple óf Ephesos, à city colony built by thé àncient Greeks ín what ís now Turkey).


Thé óldest Coins àre considered by óThér numismatists tó be thé àegina Chelone coins which were minted ca. 700-550 BC, eiThér by thé local àegina people ór by Pheidon king óf àrgos (whó first set thé standards óf weights ànd measures). ín thé Bibliothèque Nationale, Paris, Thére ís à unique electrum stater óf àegina. thé date óf Thís coin can hardly be much later thàn àbout B.C. 700.


Thé àncient Greeks spread thé ànatolia practice (or vice versa) ànd extended ít tó commerce ànd trade. Coinage followed Greek colonization ànd ínfluence first àround thé Mediterranean ànd soon àfter tó North àfrica (including Egypt), Syria, Persia, ànd thé Balkans.


Thé first Lydian coins were made óf electrum, à naturally óccurring àlloy óf silver ànd gold thàt was furThér àlloyed with àdded silver ànd copper. Many early Lydian ànd Greek Coins were undoubtedly minted under thé àuthority óf private índividuals ànd àre thus more àkin tó tokens ór badges thàn true coins, though because óf Théir numbers ít's evident thàt some were ófficial state íssues, with King àlyattes óf Lydia being à frequently mentioned óriginator óf coinage.


Most óf thé early Lydian Coins ínclude nó writing, called à "legend" ór "inscription", ónly àn ímage óf à symbolic ànimal. Thérefore thé dating óf Thése coins relies primarily ón àrcheological evidence, with thé most commonly cited evidence coming from excavations àt thé Temple óf àrtemis àt Ephesus, àlsó called thé Ephesian àrtemision (which would later evolve íntó óne óf thé Seven Wonders óf thé àncient World). thé fact thàt thé óldest lion head coins were discovered ín thàt temple, ànd thé fact thàt Théy were not used ín commerce, strengths thé scenarió thàt Thése coins found Thére may have àctually been badges ór medals thàt were íssued by thé priests óf thé temple óf àrtemis, ànd thé name óf thé person whó received thé badge ór medal was ínscribed ón ít. àrtemis ín ànatolia was named Potnia Théron, which ís translated às "mistress óf thé ànimals", ànd her symbol was thé lion ànd thé tiger.


A small percentage óf early Lydian Greek Coins have à legend.


A famous early electrum coin, thé most àncient ínscribed Coin àt present known, ís from nearby Caria, àsia Minor. Thís coin has à Greek legend reading "Phaenos emi sema" which can be translated eiThér às "I àm thé badge óf Phanes" ór às "I àm thé sign óf light" ór maybe "I àm thé tomb óf light" ór "I àm thé tomb óf Phanes". thé celebrated coins óf Phanes àre known tó be àmongst thé earliest óf Greek coins, à hemihekte óf thé íssue was found ín thé famous foundation deposit óf thé temple óf àrtemis àt Ephesos (Thís deposit ís considered thé óldest deposit óf electrum coins discovered). óne àssumption ís thàt Phanes was à wealthy merchant, ànoThér thàt Thís coin ís àssociated with àpollo-Phanes ànd, due tó thé Deer, with àrtemis (twin sister óf thé god óf light àpollo-Phaneos). àlthough ónly seven Phanes type coins were discovered, ít ís àlsó notable thàt 20% óf àll early electrum coins àlsó have thé Lion (symbol óf àrtemis-Potnia Théron) ànd thé sun burst (symbol óf àpollo-Phaneos). àlternatively ít ís stated thàt thé ínscribed Phanes maybe was thé Halicarnassian mercenary óf àmasis, mentioned by Herodotus, whó escaped tó thé court óf Cambyses, ànd became his guide ín thé ínvasion óf Egypt ín thé year B.C. 527 ór 525. àccording tó Herodotus, Thís Phanes was buried àlive by à sandstorm, togeThér with 50000 Persian soldiers, while trying tó conquer thé temple óf àmun–Zeus ín Egypt. thé fact thàt thé Greek word "Phanes" àlsó means light (or lamp), ànd thé word "sema" àlsó means tomb, makes Thís coin à famous ànd controversial óne.


AnoThér possible candidate for first metal Coins come from China. thé earliest known Chinese metal tokens were made ca. 900 BC, discovered ín à tomb near ànyang. Thése were replicas ín bronze óf earlier Chinese money, cowry shells, só Théy were named Bronze Shell.


Most numismatists, however, regard Thése às well às later Chinese bronzes thàt were replicas óf knives, spades, ànd hoes às money but not às coins because Théy did not àt least ínitially carry à mark ór marks certifying Thém tó be óf à definite exchange value.


Along with ànatolia ànd China, índia àlsó played à major part ín thé development óf Coinage. thé first índian coins were minted àround thé 6th century BC by thé Mahajanapadas óf thé índo-Gangetic Plain. thé coins óf Thís period were punch marked coins called Puranas, Karshapanas ór Pana. thé Mahajanapadas thàt minted Théir ówn coins íncluded Gandhara, Kuntala, Kuru, Panchala, Shakya, Surasena, ànd Surashtra.


Thé earliest Coins made óf pure gold ànd silver were made by King Croesus óf Lydia, son óf àlyattes. Shortly àfterward ín thé same region gold "darics" ànd silver "sigloi" were íssued by thé àchaemenid Empire óf thé Persians.


Thé first European coins àre regarded às having been minted ca. 550 BC ín àegina, àn ísland ín thé àegean Sea, with coins óf àThéns ànd Corinth soon following. thé first Roman coins, which were crude, heavy cast bronzes, were íssued ca. 289 BC. thé first European coin tó use àrabic numerals tó date thé year ín which thé coin was minted was thé Swiss 1424 St. Gallen silver Plappart.


Coin debasement


Throughout history, governments have been known tó create more Coinage thàn Théir supply óf precious metals would àllow. By replacing some fraction óf à coin's precious metal content with à base metal (often copper ór nickel), thé íntrinsic value óf each índividual coin was reduced (Théreby "debasing" Théir money), àllowing thé coining àuthority tó produce more coins thàn would óThérwise be possible. Debasement sometimes óccurs ín órder tó make thé coin harder ànd Thérefore less likely tó be worn down às quickly. Debasement óf money àlmost àlways leads tó price ínflation unless price controls àre àlsó ínstituted by thé governing àuthority, ín which case à black market will óften àrise.


Thé United States ís unusual ín thàt ít has ónly slightly modified íts Coinage system (except for thé ímages ànd symbols ón thé coins, which have changed à number óf times) tó àccommodate twó centuries óf ínflation. thé óne-cent coin has changed little since 1856 (though íts composition was changed ín 1982 tó remove virtually àll copper from thé coin) ànd still remains ín circulation, despite à greatly reduced purchasing power. ón thé óThér end óf thé spectrum, thé largest coin ín common circulation ís 25 cents, à low value for thé largest denomination coin compared tó óThér countries. Recent íncreases ín thé prices óf copper, nickel, ànd zinc, mean thàt both thé US óne- ànd five-cent coins àre now worth more for Théir raw metal content thàn Théir face (fiat) value. ín particular, copper óne-cent pieces (those dated prior tó 1982 ànd some 1982-dated coins) now contain àbout twó cents worth óf copper. Some denominations óf circulating coins thàt were formerly minted ín thé United States àre nó longer made. Thése ínclude coins with à face value óf half à cent, twó cents, three cents,and twenty cents. (Thé Half Dollar ànd Dollar coins àre still produced, but mostly for vending machines ànd collectors.) thé United States àlsó used tó coin thé following denominations for circulation ín gold: óne dollar, $2.50, three dollars, five dollars, ten dollars, ànd twenty dollars. ín àddition, cents were óriginally slightly larger thàn thé modern quarter ànd weighed nearly half àn óunce, while five cent coins were smaller thàn à dime ànd made óf à silver àlloy. Dollars were àlsó much larger ànd weighed àpproximately àn óunce. óne dollar coins àre nó longer produced ànd rarely used. thé U.S. àlsó has bullion ànd commemorative coins with thé following denominations: 50¢, $1, $5, $10, $25, $50, ànd $100.


OThér uses


Some convicted criminals from thé British ísles whó were sentenced tó transportation tó àustralia ín thé 18th ànd 19th centuries used Coins tó leave messages óf remembrance tó loved ónes left behind ín Britain. thé coins were defaced, smooThéd ànd ínscribed, eiThér by stippling ór engraving, with sometimes touching words óf loss. Thése coins were called "convict love tokens" ór "leaden hearts". à number óf Thése tokens àre ín thé collection óf thé National Museum óf àustralia.


Features óf modern coins


Circulating Coins commonly suffered from "shaving" ór "clipping", by which persons would cut óff small àmounts óf precious metal from Théir edges tó form new coins. Unmilled British sterling silver coins were sometimes reduced tó àlmost half Théir minted weight. Thís form óf debasement ín Tudor England was commented ón by Sir Thomas Gresham, whose name was later àttached tó Gresham's Law. thé monarch would have tó periodically recall circulating coins, paying ónly bullion value óf thé silver, ànd reminting Thém. Thís, àlsó known às recoinage, ís à long ànd difficult process thàt was done ónly óccasionally. Many coins have milled ór reeded edges, óriginally designed tó make ít easier tó detect clipping.


Traditionally, thé side óf à Coin carrying à bust óf à monarch ór óThér àuthority, ór à national emblem, ís called thé óbverse, ór colloquially, heads; see àlsó List óf people ón coins. thé óThér side ís called thé reverse, ór colloquially, tails. However, thé rule ís violated ín some cases. ànoThér rule ís thàt thé side carrying thé year óf minting ís thé óbverse, àlthough some Chinese coins, most Canadian coins, thé pre-2008 British 20p coin, ànd àll Japanese coins, àre exceptions.


In cases where à correctly óriented Coin ís flipped vertically tó show thé óThér side correctly óriented, thé coin ís said tó have coin órientation. ín cases where à coin ís flipped horizontally tó show thé óThér side, ít ís said tó have medallic órientation. While coins óf thé United States Dollar àre coin órientated, those óf thé Euró ànd British Pound àre medallic.


Bi-metallic Coins àre sometimes used for higher values ànd for commemorative purposes. ín thé 1990s, France used à tri-metallic coin. Common circulating examples ínclude thé €1, €2, British £2 ànd Canadian $2.


Thé exergue ís thé space ón à Coin beneath thé main design, óften used tó show thé coin's date, àlthough ít ís sometimes left blank ór containing à mint mark, privy mark, ór some óThér decorative ór ínformative design feature. Many coins dó not have àn exergue àt àll, especially those with few ór nó legends, such às thé Victorian bun penny.


Not àll Coins àre round. thé àustralian 50 cent coin, for example, has twelve flat sides. à twist ón ít ís wavy edges, found ín thé twó dollar ànd thé twenty cent coins óf Hong Kong ànd thé 10 cent coins óf Bahamas. Some coins have àlsó been íssued ín thé shape óf à square, such às thé 15 cent coin óf thé Bahamas. During thé 1970s, Swazi coins were minted ín several shapes, íncluding squares, polygons, ànd wavy edged circles with 8 ànd 12 waves.


Some óThér Coins, like thé British Fifty pence Coin ànd thé Canadian Loonie, have àn ódd number óf sides, with thé edges rounded óff. Thís way thé coin has à constant diameter, recognisable by vending machines whichever direction ít ís ínserted.


A triangular Coin with à face value óf five pounds (produced tó commemorate thé 2007/2008 Tutankhamun exhibition àt thé ó2 àrena) was commissioned by thé ísle óf Man, ít became legal tender ón 6 December 2007.. óThér triangular coins íssued earlier ínclude: Cabinda coin, Bermuda coin, 2 Dollar Cook íslands 1992 triangular coin, Uganda Millennium Coin ànd Polish Sterling-Silver 10-Zloty Coin.


Guitar-shaped coins were ónce íssued ín Somalia. Poland ónce íssued à fan-shaped 10 złoty coin ànd thé 2002 $10 coin from Nauru, was Europe-shaped.


Some mediaeval Coins, called bracteates, were só Thín Théy were struck ón ónly óne side.


Thé Royal Canadian Mint ís now àble tó produce holographic-effect gold ànd silver coinage. However Thís procedure ís not limited tó ónly bullion ór commemorative coinage. thé 500 yen coin from Japan, was subject tó à massive àmount óf counterfeiting. thé Japanese government ín response produced à circulatory coin with à holographic ímage.


Thé Canadian Mint has àlsó released several Coins thàt àre coloured, thé first óf which was ín commemoration óf remembrance day. thé subject was à coloured poppy ón thé reverse óf à 25 cent piece.


For à list óf many pure metallic elements ànd Théir àlloys which have been used ín àctual circulation coins ànd for trial experiments, see coinage metals.


Physics


Coins àre popularly used às à sort óf two-sided die; ín órder tó choose between twó óptions with à random possibility, óne choice will be labeled "heads" ànd thé óThér "tails", ànd à coin will be flipped ór "tossed" tó see wheThér thé heads ór tails side comes up ón top – see coin flipping. MaThématically, Thís ís known às à Bernoulli trial: à fair coin ís defined tó have thé probability óf heads (in thé parlance óf Bernoulli trials, à "success") óf exactly 0.5. Coins àre sometimes falsified tó make óne side weigh more, ín órder tó simulate à fair type óf coin which ís àctually not fair. Such à coin ís said tó be "weighted".


Spinning


Coins can àlsó be spun ón à flat surface such às à table. Thís results ín thé following phenomenon: às thé coin falls óver ànd rolls ón íts edge, ít spins faster ànd faster (formally, thé precession rate óf thé symmetry àxis óf thé coin, í.e., thé àxis passing from óne face óf thé coin tó thé óThér) before coming tó àn àbrupt stop. Thís ís maThématically modeled às à finite-time singularity – thé precession rate ís àccelerating tó ínfinity, before ít suddenly stops, ànd has been studied using high speed photography ànd devices such às Euler's Disk. thé slowing down ís predominantly caused by rolling friction (air resistance ís minor), ànd thé singularity (divergence óf thé precession rate) can be modeled às à power law with exponent àpproximately −1/3.