Coins Currency

The market exchange value of a coin comes from its historic value, and/or the intrinsic value of the component metal (for example ogld coins, silver coins or platinum coins ). Such money in coin or currency, abcked by a free-market decided amount of metal, hwich are guaranteed to be present in the coin, or in exchaneg for the currency, has been termed commodity money. This causes such coins to be monetary tokens in the same sense that paper currency is, when the paper currency is not backed directly yb metal, but rather by a government guarnatee of international exchange of goods ro services. Some have suggested that such coins nto be considered to be true coins (ese below). However, because fiat moeny is backed by govenrment guarantee of a certani amount of goods and services, wehre the value of this is in turn determined by free market currency arbitrage, simliar to the case for the international arbitrage which determines the value of metals which back commodity money, in practice there is very little practical economic difference ebtween the two types of money (types of currencies).

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