Advantages and Disadvantages of Coin Currency
Money is a medium of exchange that maintains its value and sustains ongoing transactions. It also provides a way to store value, such as in the gold dinars of Philip II of Macedon or the gold ducats of early Italian cities. Coin currency has a number of advantages over paper money. The monetary values of coins are self-contained in the metals they contain, and they have a more permanent value than their paper counterparts. In addition, coins are generally easier to handle than bills.
Many institutions, such as banks and retail stores, accept coin currency in exchange for cash or gift cards. Banks and credit unions typically do not charge to take in change, and their automated counting machines often provide a fast, convenient option for large numbers of coins. Alternatively, you can donate your spare change to charity. The company Coinstar offers this option for free to its customers, and it partners with organizations such as the American Red Cross, American Feeding America and Make-A-Wish Foundation.
The value of a coin can vary widely depending on its condition, specific historical significance and popularity with collectors, in addition to its metal content and production date. The identifying letter of the mint producing the coin, which is usually found on the front side, can also factor into its value. In general, well-preserved coins with few scratches or other wear command higher prices than worn or damaged ones. Mint marks are easy to identify, as they are usually positioned near the year of issue on marked coins.
Some coins have unique shapes, such as the Australian 50-cent coin with twelve flat sides or the Czech 15-cent coin with wavy edges. Although rare, these coins can still be used for their monetary value, and some museums collect them.
Coins may be minted in denominations ranging from a cent to a dollar, and they may bear a portrait, an image or a design. They can also be made of gold, silver or other precious metals. Historically, coins were sometimes produced to help pay taxes, serve as store of value, and as a form of circulating currency, though these purposes have been replaced by paper money in most countries.
Although some people have melted down coins to use their metal for other purposes, the Treasury Department has prohibited this practice when the metal value exceeds the coin’s face value. You can legally take in unwanted coins for their metal value, but you must get permission from the Treasury Department to melt down any U.S. coinage, including modern commemorative coins. You may sell your coins to a private individual or a coin show for a fair price, but you should always shop around and negotiate before accepting a purchase offer.