What Is Coin Currency?

What Is Coin Currency?

Coin currency is the form of money that has been in use for thousands of years. Coins may be made of precious metals or other materials and have a standardized weight and value that makes them easier to trade than other goods like livestock or grain. A coin is usually round, but it can also be rectangular or have other shapes and can feature a variety of designs, engravings or other marks on it. Unlike paper money, coins are more durable and resistant to wear and tear.

People keep pennies, nickels, dimes and quarters in their pockets or in change containers at home. Many of these coins are worth little more than their face value, but the collector’s market is booming for rare or historic coins. Some coins that were once in circulation have been reminted for commemoration of current and historical events, and are thus worth more than the face value on the coin.

In ancient times, coins were often minted as a way to demonstrate the wealth and power of a city or state. Whether they are made of gold or silver, coins have always been prized and hoarded. When studied alongside literary or archaeological evidence, they can reveal a great deal about the economic history of past civilizations.

Besides reflecting the power and prestige of a city or country, coins can also tell us about the flow of goods, services and ideas between cities and countries in antiquity. The popularity of Athenian silver coins in the Levant, or of Corinthian coinage in Magna Graecia, for example, shows that established trade routes were in place. Inscriptions on coins, especially those identifying the owner of the coin or giving his name, can be very helpful in dating the coin.

A coin is considered to be in mint condition when its obverse (front) and reverse sides are clean and crisp, with no scratches or other damage that would lower the value of the coin. The obverse and reverse sides must also be properly aligned, and when viewed from the front, the image should appear right side up. This is called coin orientation, and it is the norm for modern European and British coins as well as most American ones.

While the value of paper money can decline due to inflation, coins generally hold their value over time because they are made of metals that will still be in demand as jewelry and other items. However, a coin’s value may drop because of rising raw metal prices. For example, in the 1980s, copper one-cent coins lost more of their real value than their face value because of the increased price of copper.

If you want to put your old coins back into circulation, try taking them to your local bank or credit union. Many banks have coin exchange services, and they may pay you more than a service like Coinstar. NerdWallet personal finance writer Chanelle Bessette says to call ahead and find out the bank’s process and what the upper limit is for the amount of coin they will accept. You can also check online to see if the bank will charge you a fee for the service.