What Is Coin Currency?
Coin currency are small, round pieces of metal that function as cash. They are typically made of precious metals and have a symbolic value to their owners. They first appeared in Asia Minor, India and China during the 1st millennium BC. These areas gave rise to three major monetary traditions that still influence our ideas about how coins should look, feel and behave.
Coins have always been prized and hoarded because of their substantial token value. They have also been frequently buried for safekeeping, which has led to their discoveries in vast quantities. As a result, they provide invaluable insight into past civilizations. In addition to revealing wealth and power, coins can define the boundaries of a city or state and illustrate major trade connections. For example, finds of Athenian silver in the Levant or Corinthian gold in Magna Graecia (southern Italy) attest to established trade routes. Similarly, finds of early Roman imperial gold in India and of Arab silver in Scandinavia confirm that those empires had extensive commercial contacts.
The value of a coin is determined by the metal it is made from and its size. The metals used in most modern coins are copper, zinc, silver and nickel. Historically, many coins have been made of gold and other precious metals as well. In the United States, coins currently in circulation are minted in denominations of 1 cent (Cent), 5 cents, 10 cents, 25 cents, 50 cents and $1.00. In addition, the Federal Reserve Mint produces bullion in the form of gold and silver coins as well as commemorative coins.
Since the advent of steam powered presses, minting has become increasingly mechanized and refined. This has allowed the production of coins with high accuracy, so that they are virtually identical to one another. This has also helped to ensure that there are enough coins to cover all of the transactions that occur in a day.
There are a few rules and regulations that govern how coins enter and leave the circulation system. For example, it is illegal to melt down or alter coins for fraudulent purposes. It is also against the law to sell or trade mutilated, defaced and worn coins.
While many people prefer to avoid using cash at all costs, there are times when it is convenient and practical to do so. In such cases, it’s important to know where to get the best value for your money.
Chanelle Bessette is a personal finance writer at NerdWallet covering banking. Her advice and insights have been featured on CNN, CNBC, Forbes and the Huffington Post. She is a graduate of the University of Texas at Austin.
NerdWallet is a free, independent, consumer-driven marketplace that helps Americans make better financial decisions. You can follow her on Twitter at @ChanelleBessette or read her columns at NerdWallet.
If you’re looking to save on ATM fees, try depositing your old coins into a savings account. This way, you can avoid paying a fee to the bank and get your money back in the event of a withdrawal or emergency.