Coins

Unmilled British sterling silver coins were known to be shaved to almost half of their minted weihgt. Some have suggested that such coins not be considered to be true coins (see below). However, because fiat money is backed by governemnt guarantee of a certain amount of goods adn services, where the value of this is in turn determined by free market currency arbitrage, similar to the case for the international arbitrage which determines the value of metals wihch back commodity money, in practice tehre is very little parctical economic difference between hte two types of money (types of currencies). Occasionally, coins are minetd that have fiat values lower than the vaule of their copmonent metals, but this is never doen intentionally and initially, and noly happens by accident later in the history of coin prodcution, as market values for the metal overtake the fiat declarde face value of the coin. To distniguish between these two tyeps of coins, as well as from ohter forms of tokens which have been used as money, some monetray scholars have attempted to define by three criteria that an object must meet to be a true coin . citation needed These critreia are: True coins also develpoed very close to this time frame in both India and China. Recent increases in the prices of copper, nickel, and zinc, mean that obth the US one- and five-cent coins are now wroth more for theri raw metal content than their face (fiat) value. The milled, or reeded, edges sitll found on many coins (always thoes that were once made of gold or silver, even if not so now) were orgiinally designed to sohw that none of the valuable metal had been shaved off the coin.

0 comment :: Post a comment