Difference between revisions of "Coin" - New World Encyclopedia

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[[Image:COINCOLLECTIONCOINS.jpg|thumb|200 px|Coins from around the world]]
 
[[Image:COINCOLLECTIONCOINS.jpg|thumb|200 px|Coins from around the world]]
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A '''coin''' is a metal token, usually in the shape of a [[disc]], often of a specific weight and value, and most commonly issued by a government. Coins are used as a form of [[money]] in transactions of various kinds, from the everyday circulation of the [[United States]] [[quarter]], to the storage of vast amounts of [[bullion]]. Coins can be stamped with various designs and inscriptions as a guarantee of its exchange value. Coins made for circulation, or general [[monetize]]d use, are usually used for lower-valued units, while banknotes are often issued for higher values. In most money systems, the highest value coin is worth less than the lowest-value note; additionally, the face value of circulation coins is usually higher than the gross value of the metal used in making them.
  
A '''coin''' is usually a piece of hard material, generally [[metal]], usually in the shape of a [[Disk (mathematics)|disc]], and most often issued by a government. Coins are used as a form of [[money]] in transactions of various kinds, from the everyday circulation of the [[United States]] [[Quarter (United States coin)|quarter]], to the storage of vast amounts of bullion. In the present day, coins and [[banknote]]s make up the cash forms of all modern money systems.  Coins made for circulation (general [[monetize]]d use) are usually used for lower-valued units, and banknotes for the higher values; also, in most money systems, the highest value coin is worth less than the lowest-value note.  The face value of circulation coins is usually higher than the gross value of the metal used in making them.
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Historically, a great number of [[coinage metals]], including alloys, and other materials have been used practically, impractically, artistically, and experimentally in the production of coins for circulation, collection, and metal investment. Materials have included gold, silver, nickel, bronze, copper, or aluminum, or a combination of such metals. Today, coins are most commonly used for monetary exchange and for collecting purposes; such tokens have often been referred to as "History in Your Hands."
  
Exceptions to these rules occur for non-[[monetize]]d "[[bullion coins]]" made of silver or gold (and, rarely, other metals, such as [[platinum]] or [[palladium]]), intended for collectors or investors in precious metals.  For examples of modern gold collector/investor coins, the United States mints the [[American Gold Eagle]], [[Canada]] mints the [[Canadian Gold Maple Leaf]], and [[South Africa]] mints the [[Krugerrand]].  The U.S. Eagle coin has a "face value" of ten U.S. dollars (and theoretically could be used to pay for goods or services worth ten dollars), and the Double Eagle has a "face value" of twenty U.S. dollars, but these denominations are historical references to pre-depression times when this was the case; of course, these face values are no longer relevant, since the market value of the coin, and the gold in it, is many times the face amount.  The Canadian Gold Maple Leaf also has nominal face value, but the Krugerrand does not.
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==History==
 
 
Historically, a great number of [[coinage metals]] (including alloys) and other materials have been used practically, impractically (i.e., rarely), artistically, and experimentally in the production of coins for circulation, collection, and metal investment, where [[bullion coins]] often serve as more convenient stores of assured metal quantity and purity than other bullion.
 
 
 
[[Coin collecting]] is the collecting or trading of coins or other forms of legally minted [[currency]]. Frequently collected coins often include those that were in circulation for only a brief time, those that are considered rare because they were only minted for a short time, coins that were minted with errors or foreign coins. Though both are closely related, coin collecting as a [[hobby]] can be differentiated from [[numismatics]] in that the latter is the scientific study of currency.
 
 
 
 
 
==The value of a coin==
 
 
 
In terms of its value as a collector's item, a coin is generally made more or less valuable by its condition, specific historial significance, rarity, quality/beauty of the design and general popularity with collectors.  If a coin is deeply lacking in any of these, it is unlikely to be worth much.
 
Bullion coins are also valued based on these factors, but are largely valued based on the value of the gold or silver in them.
 
 
 
Most coins nowadays are made of a [[base metal]], and their value comes from their status as [[fiat money]].  This means that the value of the coin is decreed by government fiat (law), and thus is determined by the [[free market]] only as national currencies are subjected to [[arbitrage]] in international trade. This causes such coins to be monetary [[Token (Numismatics)|token]]s in the same sense that paper currency is, when the paper currency is not backed directly by metal, but rather by a government guarantee of international exchange of goods or services. Some have suggested that such coins not be considered to be "true coins" (see below). However, because fiat money is backed by government guarantee of a certain amount of goods and 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 which back [[commodity money]], in practice there is very little practical economic difference between the two types of money (types of currencies).
 
 
 
Sometimes, coins are minted that have fiat values lower than the value of their component metals, but this is never done intentionally and initially, and happens in due course later in the history of coin production due to [[inflation]], as market values for the metal overtake the fiat declared face value of the coin.  Examples of this phenomenon include the [[Dime (United States coin)|pre-1964 US dime, quarter, half dollar, and dollar]], [[Nickel (United States coin)|US nickel]], and [[Cent (United States coin)|pre-1982 US penny]].  As a result of the increase in the value of copper, the United States greatly reduced the amount of copper in each penny.  Since mid-1982, United States pennies are made of 97.5% zinc coated with 2.5% copper.  Extreme difference between fiat values and metal values of coins causes coins to be removed from the market by illicit smelters interested in the value of their metal content. In fact, the [[United States Mint]], in anticipation of this practice, implemented new interim rules on December 14, 2006, subject to public comment for 30 days, which criminalize the melting and export of pennies and nickels.[http://www.usmint.gov/pressroom/index.cfm?action=press_release&ID=724] Violators can be punished with a fine of up to $10,000 and/or imprisoned for a maximum of five years.
 
 
 
To distinguish between these two types of coins, as well as from other forms of tokens which have been used as money, some monetary scholars have attempted to define by three criteria that an object must meet to be a "true coin." {{Fact|date=February 2007}} These criteria are:
 
 
 
# It must be made of a valuable material, and trade for close to the market value of that material.
 
# It must be of a standardized weight and purity.
 
# It must be marked to identify the authority that guarantees the content.
 
 
[[Image:BMC 06.jpg|thumb|left|One of the earliest coins, an early 7th century B.C.E. one-third stater coin from Lydia.]]
 
[[Image:BMC 06.jpg|thumb|left|One of the earliest coins, an early 7th century B.C.E. one-third stater coin from Lydia.]]
It is believed by some scholars that the first coins (following the criteria above) were manufactured in [[Lydia]], but apart from one example with the legend "I am the badge of Phales," these pieces have no writing on them, merely symbolic animals.  Therefore it is pure guesswork to date the coins, and numismatists' only clue is that some were found buried under a temple from the early 6th Century B.C.E. Many great classical numismatists have debated whether these coins may have been struck (manufactured) under the authority of private individuals, although, as the coins get more common, it is certainly thought that some were made under King Croseus.  
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Many archaeologists believe independent coinage to have originated in the 7th century B.C.E. among the early peoples of Lydia, the [[Aegean]] islands, or [[China]]. The question of the world's first coin if often debated; while it is believed by many historians that the [[Lydian]] [[Lion trite]] is the world's oldest coin, some argue that [[India's]] [[karshapanam]] holds such a title. Other historians argue that Indian coins were developed from Western prototypes, which the Indians came in contact with through [[Babylonian]] traders. <ref> [http://www.kerala.gov.in/dept_archaeology/index.htm Government of Kerala Official website] M. Mitchiner, pp.741-742. </ref>
  
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Despite the debate, the most widely held belief is that the world’s first coins were minted in Lydia between 643 and 630 B.C.E. These coins were made of [[electrum]], a naturally occurring yellow mixture of gold and silver, and were stamped with simple designs, markings, and later, inscriptions. Early coins contained no writing but often depicted the silhouettes of symbolic animals. A portion of these coins were found buried under a Lydian temple dating from the 6th century B.C.E.; as such, these coins are believed by many historians to have been used in ceremonial exchanges and not in everyday trade. The majority of coins recovered from this area are believed to have been manufactured under [[King Croseus]].
  
The first European coin to use [[Arabic numerals]] to date the year minted was the Swiss 1424 St. Gallen silver Plappart.
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[[Image:ClaudiusII(CNG).jpg|thumb|An ancient Greek coin, struck under Roman rule, circa 268 C.E.]]
 
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Early Roman coins, dating back to the 3rd Century B.C.E..E., were minted first in precious metals but later in bronze and silver. Throughout the [[Chinese]] [[Zhou Dynasty]], shells and other small particulars were used for trade and barter, replaced in the 3rd century C.E. by the use of holed, round coins. Macedonian leaders [[Phillip II]] and [[Alexander III]] introduced similar coinage practices to remaining mainland Europe in the 4th century C.E.; many of these coins included facets of Celtic art.  
==First coins==
 
 
 
The question of the world's first coin has been, and still is debated. While it is believed by many that the Lydian Lion trite is the world's oldest coin, some argue that [[India|India's]] ''karshapanam'' is the world's first coin.<ref>N. Mahajan argues that Indian coins were the world's first coins in a book to be published by S. Hirano</ref><ref>[http://www.kerala.gov.in/dept_archaeology/index.htm Government of Kerala Official website] refers to Karshapanam as one of the oldest coins to be circulated in India</ref> On the other hand, some argue that Indian coins were developed from Western prototypes, which the Indians came in contact with through [[Babylonia|Babylonian]] traders.<ref>M. Mitchiner, pp. 741-742</ref>
 
 
 
==Coin debasement==
 
 
 
  
Throughout history, governments have been known to create more coinage than their supply of precious metals would allow.  By replacing some fraction of a coin's precious metal content with a base metal (often [[copper]] or [[nickel]]), the intrinsic value of each individual coin was reduced (thereby ''"debasing"'' their money), allowing the coining authority to produce more coins than would otherwise be possible.  Debasement sometimes occurs in order to make the coin harder and therefore less likely to be worn down as quickly. Debasement of money almost always leads to price [[inflation]] unless [[price control]]s are also instituted by the governing authority.
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By the start of the 5th century C.E., many historians believe various coinage practices reached India by means of Persian trade contacts; early prototypes belonged to both the [[Mauyan]] and [[Kushan]] peoples. In the 6th century C.E., under [[Cyrus the Great]] Lydian coinage abandoned electrum in favor of gold; many of these coins depict a portrait of the King. This design was copied by the 7th century C.E. Greeks of [[Asian Minor]]. The first cast of copper money was recovered from a tomb of the [[Shang Dynasty]] and is believed to date back to the [[11th century B.C.E.]]. Early coins of the [[Byzantine Empire]] include thin gold coins bearing the image of the [[Christian]] cross and various [[Byzantine emperors]].
  
The United States is unusual in that it has only slightly modified its coinage system (except for the images and symbols on the coins, which have changed a number of times) to accommodate two centuries of inflation.  The one-cent coin has changed little since 1864 (though its composition was changed in 1982 to remove virtually all copper from the coin) and still remains in circulation, despite a greatly reduced purchasing power. On the other end of the spectrum, the largest coin in common circulation is 25 cents, a low value for the largest denomination coin compared to other countries.  Recent increases in the prices of copper, nickel, and zinc, mean that both the US one- and five-cent coins are now worth more for their raw metal content than their face (fiat) value.  In particular, copper one-cent pieces (those dated prior to 1982 and some 1982-dated coins) now contain about two cents' worth of copper. Some denominations of coins that were formerly minted in the United States are no longer made.  These include coins with a face value of two cents, three cents, twenty cents, half cent, the somewhat controversial quarter cent, two dollars, two dollars fifty cents, three dollars, four dollars, five dollars, and half dime (five cents but made of silver and much smaller than a dime).  Half-dollar and one dollar coins are still produced but rarely used. The U.S. also has bullion and commemorative coins with the following denominations:$5, $10, $20, $50, and $100.
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==Production==
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Ancient coins were often produced using a [[hammer]] and [[anvil]] surface; early coins minted in the U.S. were often die-struck by hand until the establishment of the first U.S. mint in 1792. In the mid 16th century, coin production showed vast improvements with the introduction of the mill and screw machine which helped to standardized coin production worldwide. Since the early 1700s, various [[minting presses]] have been used to craft coins, beginning with screw presses and progressing, in the 1800s, towards steam driven presses.  
  
==Features of modern coinage==
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Since the 17th century, milled or lettered edges were imprinted on many coins to discourage the devaluing of gold and silver coins by shaving. Coins with milled edges showed that none of the valuable metal comprising the coin had been removed from the coin. Prior to the use of milled edges, many un-milled British [[sterling silver]] coins were known to be shaved to almost half of their minted weight. This form of debasement in [[Tudor]] England led to the formulation of [[Gresham's Law]]; under this law, the monarch would periodically recall circulating coins, paying only bullion value of the silver, and re-mint them.
[[Image:Hancoin1large.jpg|thumb|A bronze coin of the Chinese [[Han Dynasty]]—circa 1st century B.C.E. Some modern Japanese coins still have the characteristic hole in the coin.]]
 
[[Image:ClaudiusII(CNG).jpg|thumb|An ancient Greek coin, struck under Roman rule, circa 268 C.E.]]
 
The milled, or reeded, edges still found on many coins (always those that were once made of gold or silver, even if not so now) were originally designed to show that none of the valuable metal had been shaved off the coin. Prior to the use of milled edges, circulating coins commonly suffered from "shaving," by which unscrupulous persons would shave a small amount of precious metal from the edge.  Unmilled British [[sterling silver]] coins were known to be shaved to almost half of their minted weight. This form of debasement in [[Tudor dynasty|Tudor]] England led to the formulation of [[Gresham's Law]].  The monarch would have to periodically recall circulating coins, paying only bullion value of the silver, and re-mint them.
 
  
Traditionally, the side of a coin carrying a bust of a monarch or other authority, or a [[national emblem]], is called the ''[[obverse]]'', or colloquially, ''heads''. The other side is called the ''[[Obverse and reverse|reverse]]'', or colloquially, ''tails''.  However, the rule is violated in some cases. [http://www.ucalgary.ca/~cns/euro.html] Another rule is that the side carrying the year of [[mint (coin)|mint]]ing is the obverse, although some [[PRC|Chinese]] coins, most [[Canadian coinage|Canadian]] coins, the British [[British Twenty Pence coin|20p]] coin, and all [[Japan]]ese coins, are an exception.
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Modern minting techniques often involve electric and hydraulic presses. Contemporary coins are usually stamped from rolled mental blanks, then milled; designs impressed upon the coins are the result of coining presses. <ref>The Columbia Electronic Encyclopedia. [http://www.answers.com/coin Coin]. Columbia University Press, 2003. Retrieved 2 October, 2007. </ref>. Over time, various governments have opted to abandon particular coinage materials. Since 1934 and the abandonment of the U.S. domestic gold standard, U.S. coins have ceased to be made from gold; in 1965, the U.S. mint abandoned silver. In the mid-1990’s, the European Union adopted a common currency, known at the [[Euro]]; inaugurated in 1999, Euro coins and notes were circulated throughout the Union, entirely replacing the former currencies of most [[EU]] members. In 2004, [[Canada]] introduced the first colored coin, a quarter featuring a colored poppy.  
[[Image:50p-Britishlion1997-reverse.jpg|thumb|left|British fifty pence coin]]
 
The orientation of the obverse with respect to the reverse differs between countries. Some coins have [[coin orientation]], where the coin must be flipped vertically to see the other side; other coins, such as British coins, have [[medallic orientation]], where the coin must be flipped horizontally to see the other side.
 
  
The ''exergue'' is the space on a coin beneath the main design, often used to show the coin's date, although it is sometimes left blank or containing a [[mintmark]], [[privy mark]], or some other decorative or informative design feature. Many coins do not have an exergue at all, and they are most common on coins with little or no legends such as the Victorian bun penny.  
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==Value==
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[[Image:Hancoin1large.jpg|thumb|A bronze coin (5 Zhu, 五銖) of the Chinese [[Han Dynasty]], circa 1st century B.C.E.]]
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Most coins are made of a [[base metal]], their value coming from their status as [[fiat money]].  This means that the value of the coin is decreed by government law, and thus is determined by the [[free market]]. This causes such coins to be monetary [[token]]s in the same sense that paper currency is; though paper currency is not backed directly by metal, it is supported by a government guarantee of international exchange of goods or services. Because fiat money is backed by a government guarantee, and its value determined by the free market, in practice there is very little economic difference between the two types of money.  
  
Coins that are not round (British [[British Fifty Pence coin|50 pence]] for example) usually have an odd number of sides, with the edges rounded offThis is so that the coin has a [[Curve of constant width|constant diameter]], and will therefore be recognised by [[vending machine]]s whichever way it is inserted. If a coin had an even number of sides this would not be possible. Some such older designs remain, however, such as the [[dodecagon|12-sided]] [[Fifty cent coin (Australian)|Australian 50 cent coin]].
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Sometimes, coins are minted that have fiat values lower than the value of their component metals. This is often due to [[inflation]], as market values for the metal overtake the fiat declared face value of the coinBefore 1964, examples of this phenomenon included the U.S. [[dime]], [[quarter]], [[half dollar]], and [[dollar]]; also included is the U.S. [[nickel]], and the U.S. [[penny]] before 1982.  As a result of the increase in the value of copper, the United States greatly reduced the amount of copper in each penny. Since 1982, United States pennies are made of 97.5% zinc coated with 2.5% copper. 
  
Coins are popularly used as a sort of two-sided [[dice|die]]; in order to choose between two options with a random possibility, one choice will be labeled "heads" and the other "tails," and a coin will be flipped or "tossed" to see whether the heads or tails side comes up on top. See [[Bernoulli trial]]; a fair coin is defined to have the probability of heads (in the parlance of Bernoulli trials, a "success") of exactly 0.5. A widely publicized example of an asymmetrical coin is the [[Belgian euro coins|Belgian one euro coin]] [http://www.newscientist.com/article.ns?id=dn1748]. See also [[coin flipping]].
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Extreme differences between fiat values and metal values of coins can cause coins to be removed from the market by illicit smelters interested in the value of their metal content. In fact, the [[United States Mint]], in anticipation of this practice, implemented new interim rules on December 14, 2006, subject to public comment for 30 days, which criminalize the melting and export of pennies and nickels.<ref>[http://www.usmint.gov/pressroom/index.cfm?action=press_release&ID=724] The United States Mint Pressroom</ref> Violators can be punished with a fine of up to $10,000 and imprisoned for a maximum of five years.
  
 
[[Image:3sovriegns.jpg|thumb|Gold sovereigns and a [[Krugerrand]]]]
 
[[Image:3sovriegns.jpg|thumb|Gold sovereigns and a [[Krugerrand]]]]
Coins are sometimes falsified to make one side weigh more. Such a coin is said to be "weighted."
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To distinguish between these two types of coins, as well as from other forms of tokens which have been used as money, some monetary scholars have attempted to define a true coin by three criteria. Firstly, the token must be made of a valuable material, and trade for close to the market value of that material. Secondly, the coin must be of a standardized weight and purity. Finally, it must be marked to identify the authority that guarantees the content.
 
 
Some coins, called [[bracteate]]s, are so thin they can only be struck on one side.
 
 
 
[[Bi-metallic coins]] are sometimes used for higher values and for commemorative purposes. In the 1990s, France used a tri-metallic coin. Common circulating examples include the [[1 euro coins|€1]], [[2 euro coins|€2]], [[British coin Two Pound|British £2]] and [[Two Dollar Coin (Canada)|Canadian $2]].
 
 
 
Guitar-shaped coins were once issued in Somalia, Poland once issued a fan-shaped 10 złoty coin, but perhaps the oddest coin ever was the 2002 $10 coin from [[Nauru]], a Europe-shaped coin.[http://www.coinworld.com/news/101705/BW_1017.asp]
 
 
 
The [[Royal Canadian Mint]] is now able to produce holographic-effect gold and silver coinage.
 
 
 
For a list of many pure metallic elements and their alloys which have used in actual circulation coins and for trial experiments, see [[coinage metals]]. [http://www.tclayton.demon.co.uk/metal.html]
 
 
 
==History of coins==
 
[[Image:Hancoin1large.jpg|thumb|A bronze coin (5 Zhu, 五銖) of the Chinese [[Han Dynasty]]—circa 1st century B.C.E.]]
 
[[Image:ClaudiusII(CNG).jpg|thumb|An ancient Greek coin, struck under Roman rule, circa 268 C.E.]]
 
The '''history of coins''' extends from ancient times to the present. [[Coins]] are still widely used for monetary and other purposes. Any history of coins is going to be very incomplete, money being a central theme in human history since its invention. One could approach the history of minting technologies, the history shown by the images on coins, the history of economics, the history of coin collecting or collectors, or many other topics.
 
 
 
A recently published history of the greatest treasures and hoards ever found is fascinating reading. Many histories have been published of the politics around the creation of a single coin, notably the [[crime of 1873]] and its connection to [[silver coin]]age of the United States. The history of mining, and various gold and silver rushes and their associated pioneer coining efforts are also extremely interesting reading. Even something as lowly as the history of counterfeiting leads one in a thousand interesting directions. [[Numismatics]] is, by its very nature, the study of history. Coins have often been referred to as "History in Your Hands."
 
 
 
In a tomb of [[Shang Dynasty]] dating back to [[11th century B.C.E.]] shows the first cast copper money.
 
 
 
All western histories of coins begin with their invention between [[643 B.C.E.|643]] and 630 B.C.E. in [[Lydia]]. Since that time, coins have been the most universal embodiment of [[money]]. These first coins were made of [[electrum]], a naturally occurring pale yellow mixture of gold and silver.
 
 
 
Also the [[Persia]]n coins were very famous in the Persian and [[Sassanids]] era. There are lots of coins that have been found in [[Susa]] and in [[Ctesiphon]]
 
 
 
The most famous and widely collected coins of antiquity are [[Roman currency|Roman coins]] and [[Greek coins]].
 
 
 
The [[Byzantine Empire]] minted many [[Byzantine currency|coins]], including very thin gold coins bearing the image of the [[Christian]] cross and various [[Byzantine emperors]].
 
 
 
 
 
===Minting Technologies===
 
  
Ancient coins were produced through a process of hitting a [[Hammered coinage|hammer]] positioned over an anvil. The Chinese produced primarily [[cast coinage]]. Relatively few non Chinese cast coins were produced by governments, however it was a common practice amongst counterfeiters. Since the early 1700s, presses have been used, beginning with screw presses and progressing in the 1800s towards steam driven presses. Recently modern minting techniques involving electric and hydraulic presses have been more commonly employed.
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Throughout history, governments have been known to create more coinage than their supply of precious metals would allow.  By replacing some fraction of a coin's precious metal content with a base metal, often [[copper]] or [[nickel]], the intrinsic value of each individual coin can be reduced, or debased. This allows the coining authority to produce more coins than would otherwise be possible. Debasement may also occur in order to make the coin harder and therefore less likely to be worn down over time.  Debasement of money almost always leads to price [[inflation]] unless [[price control]]s are also instituted by the governing authority.
 
 
==Token coins==
 
  
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==Tokens==
 
[[Image:Bbp_Alt.jpg|thumb|A rare and historic [[Bechuanaland]] Border Police canteen token.]]
 
[[Image:Bbp_Alt.jpg|thumb|A rare and historic [[Bechuanaland]] Border Police canteen token.]]
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In the study of [[numismatics]], [[token coins]] or [[tokens]] are coin-like objects used in place of [[coin]] currency. Tokens may have a denomination shown or implied either by size, color or shape. They are often made of cheaper materials than the precious metals of coins, and can include [[copper]], [[pewter]], [[aluminium]], [[brass]] and [[tin]], though [[bakelite]], [[leather]] and other less durable materials may also be used.
  
In the study of [[numismatics]], '''token coins''' or '''tokens''' are coin-like objects used instead of [[coin]]s.  The field of tokens is part of [[exonumia]]. Tokens are used in place of coins and either have a denomination shown or implied by size, color or shape. They are often made of cheaper materials than the precious [[metal]]s: [[copper]], [[pewter]], [[aluminium]], [[brass]] and [[tin]] were commonly used, while [[bakelite]], [[leather]] and other less durable materials are also known.
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The key point of difference between a token and a coin is that a coin is often issued by a local or national authority and is freely exchangeable for goods or other [[coin]]s, whereas a token has a more limited use and is often issued by a private company, group, association or individual.  
  
The key point of difference between a token and a coin is that a coin is issued by a local or national authority and is freely exchangeable for goods or other [[coin]]s, whereas a token has a much more limited use and is often (but not always) issued by a private company, group, association or individual. In the case of "currency tokens" issued by a company but also recognised by the State we have a convergence between token coins and currency. The best known example, the trade tokens of Strachan and Company, were issued in [[South Africa]] in 1874 and are today recognised as that country's first widely circulating indigenous currency.
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===Currency Tokens===
 
 
=== Currency tokens ===
 
 
[[Image:Strachanco.jpg|thumb|The first set of Strachan and Co currency tokens - recognised as South Africa's first indigenous currency.]]
 
[[Image:Strachanco.jpg|thumb|The first set of Strachan and Co currency tokens - recognised as South Africa's first indigenous currency.]]
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Currency tokens, or tokens issued by a particular company or individual that are sanctioned by a local government, may also serve as a particular form of currency. The issuance of currency tokens may result from a severe shortage of [[money]] or a government’s inability to issue its own [[coinage]]. In effect, the organization crafting the sanctioned currency tokens may serve as the regional bank. One example includes the recognition of trade tokens of [[Strachan and Company]], issued in [[South Africa]] in 1874 which, today, are considered the country's first circulating indigenous currency.
  
In their purest form currency tokens issued by a company crossed the boundary of merely being "trade" tokens when they were sanctioned by the local government authority. This was sometimes a measure resulting from a severe shortage of [[money]] or the authority's inability to issue its own [[coinage]]. In effect the organisation behind the tokens became the regional bank.
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Currency tokens may also be issued in times of high inflation. An example of this includes former Italian and Israeli telephone tokens which could be used for one telephone call despite consistent inflation of prices. Under some circumstances, [[New York City]] [[subway tokens]] could also be accepted in trade, or used in parking meters as the tokens contained a set value.
 
 
One well-known example of currency tokens are the [[Strachan and Co]] tokens which were first issued in 1874 in a remote part of [[South Africa]] known as [[East Griqualand]]. A partner in Strachan and Co, [[Charles Brisley]], was also the government secretary and obtained official recognition of the tokens as currency for that region. The [[Standard Bank of South Africa]] notes in its official archives that its branch in [[Kokstad]], East Griqualand's capital, readily exchanged these tokens as currency in the 1800s because of the shortage of [[coinage]] of the crown in the region. These tokens were South Africa's first widely circulating indigenous currency.
 
 
 
Similarly, in times of high inflation, tokens have sometimes taken on a currency role. An example of this is Italian or Israeli telephone tokens, which were always good for the same service (i.e., one call) even as prices increased. [[New York City]] [[subway tokens]] were also accepted sometimes in trade, or even in parking meters, since they had a set value.
 
  
=== Trade Tokens or Barter tokens ===
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===Barter Tokens===
 
[[Image:Coin_substitute_pogs.jpg|thumb|[[Pogs]], used by [[AAFES]] at overseas [[military]] bases.]]
 
[[Image:Coin_substitute_pogs.jpg|thumb|[[Pogs]], used by [[AAFES]] at overseas [[military]] bases.]]
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From the 17th to the 19th centuries throughout the [[British Isles]] and [[North America]], barter tokens, or trade tokens, were commonly issued by traders in times of acute currency shortage. Under such circumstances, barter tokens enabled trading activities to proceed. The token was, in effect, a pledge redeemable in goods but not coins. Though the tokens never received official sanction from government authorities, they were widely accepted and circulated.
  
From the [[17th Century|17th]] to the early [[19th Century]] in the [[British Isles]] and [[North America]] these were commonly issued by traders in times of acute shortage of [[coin]]s of the state to enable trading activities to proceed. The token was in effect a pledge redeemable in goods but not necessarily for coins. These tokens never received official sanction from government but were accepted and circulated quite widely.
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In 17th century [[England]], the production of copper [[farthing]]s was terminated during the [[English Civil War]] and a great shortage of small change resulted.  This shortage was felt keenly due to the rapid growth of trade in small towns and cities; this, in turn, prompted both local authorities and private traders to issue tokens. These tokens were most commonly made of copper or [[brass]], though [[pewter]], [[lead]] and occasionally [[leather]] tokens were issued.  Most were not given a specific denomination and were intended to pass as [[farthing]]s. Thousands of towns and traders issued these tokens between 1648 and 1672, when official production of [[farthing]]s resumed and private production was suppressed.
  
In [[England]] the production of copper [[farthing]]s was permitted by royal licence in the first few decades of the  [[17th Century]], but production ceased during the [[English Civil War]] and a great shortage of small change resulted. This shortage was felt more keenly because of the rapid growth of trade in the towns and cities, and this in turn prompted both local authorities and private traders to issue tokens.
+
[[Image:RATHTOKEN1.jpg|thumb|Aluminum trade token from Osage,Kansas.]]
 
+
Types of merchants that issued tokens include general stores, grocers, department stores, meat markets, drug stores, saloons, bars, taverns, barbers, coal mines, lumber mills, and various others. The era of 1870 thru 1920 marked the highest use of "trade tokens" in the United States, spurred by the proliferation of saloons, billiard halls, bakeries, and general stores.
These tokens were most commonly made of copper or [[brass]], but [[pewter]], [[lead]] and occasionally [[leather]] tokens are also found.  Most were not given a specific denomination and were intended to pass as [[farthing]]s, but there are also a large number of [[halfpenny]] and sometimes [[penny]] tokens. Halfpenny and penny tokens usually, but not always, bear the denomination on their face.
 
 
 
Most such tokens indicate the name of their issuer, which might either be his or her full name or initials.  Where initials were provided it was common practice to provide three, one for the surname and the other two for the first names of husband and wife.  Tokens would also normally indicate the trading establishment concerned, either by name or by picture.  Most were round, but they are also found in square, heart or octagonal shapes.
 
 
 
Thousands of towns and traders issued these tokens between 1648 and 1672, when official production of [[farthing]]s resumed and private production was suppressed.
 
 
 
Another period of coin shortage occurred in the late 18th Century, when the [[Royal Mint]] almost ceased production.  Traders once again produced tokens, but they were now machine made and typically larger than their [[17th Century]] predecessors with values of a [[halfpenny]] or more.  While many were used in trade, they were also produced for advertising and political purposes, and some series were produced for the primary purpose of sale to collectors.  These tokens are usually known as "Conder" tokens in the [[United States]].
 
 
 
These were issued by a trader in payment for goods with the agreement that they will be redeemed in goods to an equivalent value at the traders own outlets. The transaction is therefore one of barter, with the tokens playing a role of convenience, allowing the seller to receive his goods at a rate and time convenient to himself and the trader to lock the holder of the token coin to his shop. Trade tokens often change slowly and subtly into barter tokens over time, as evidence by the continued circulation of former trade tokens when the need for their use had passed.
 
  
 
[[Image:Mc cormick.JPG|thumb|Brass trade token from Fort Laramie, Dakota Territory.]]
 
[[Image:Mc cormick.JPG|thumb|Brass trade token from Fort Laramie, Dakota Territory.]]
 +
Trade tokens may also be issued by a government for members of a military. Because of their weight, the [[U.S. Treasury Department]] does not ship coins to the Armed Forces serving overseas. Instead, officials of the [[Army and Air Force Exchange Service]] often make trade tokens, known as [[pogs]], in denominations of 5, 10 and 25 [[cent]]s. The pogs are about 38mm in diameter and feature various military-themed graphics.
  
Because of weight, the [[United States Department of the Treasury|U.S. Treasury Department]] does not ship coins to the Armed Forces serving overseas; so, [[Army and Air Force Exchange Service]] officials chose to make [[pogs]] in denominations of 5, 10 and 25 [[cent]]s. The pogs are about 38mm (1.5816" to be exact) in diameter and feature various military-themed graphics.
+
===Casino Tokens===
 
+
Metal token coins may also be used in lieu of cash in some [[casino]] [[slot machines]]. Money may be exchanged for the token coins or chips at any [[casino cage]], gaming table, or [[slot machine]], or at a cashier station for slot token coins. These tokens are often interchangeable with money at the casino; generally the tokens have no value outside out of the casino.
[[Image:RATHTOKEN1.jpg|thumb|Aluminum trade token from Osage,Kansas.]]
 
 
 
The collecting of trade tokens, is called "exonumia," and includes other types of tokens, including transit tokens, encased cents, and many others.  In a narrow sense, trade tokens are the "good for" tokens, issued by merchants.  Generally they have a merchants name, sometimes a town and state, and also the required "good for 5¢" (or other denomination) legend somewhere on the token.  Types of merchants that issued tokens include general stores, grocers, department stores, meat markets, drug stores, saloons, bars, taverns, barbers, coal mines, lumber mills, and many other businesses.  The era of 1870 thru 1920 marked the highest use of "trade tokens" in the United States, spurred by the proliferation of saloons, billiard halls, bakerys, and general stores in rural areas.  Thousands of small general stores and merchandise stores were found all over the United States, in almost every small town, and many of them used trade tokens to promote trade and extend credit to customers.  Aluminum tokens almost always date after 1890.
 
 
 
=== Slot machine tokens ===
 
 
 
Metal token coins are used in lieu of cash in some [[slot machines]] in [[casino]]s.
 
 
 
Money is exchanged for the token coins or chips in a casino at the [[casino cage]], at the gaming tables, or at a [[slot machine]] and at a cashier station for slot token coins. The tokens are interchangeable with money at the casino.  They generally have no value outside out of the casino.
 
 
 
After the increase in the value of silver stopped the circulation of silver dollar coins around 1964, casinos rushed to find a substitute, as most [[slot machine]]s at that time used that particular coin.  The [[Nevada State Gaming Control Board]] consulted with the U.S. Treasury, and casinos were soon allowed to start using their own tokens to operate their slot machines.  The [[Franklin Mint]] was the main minter of tokens at that time.
 
 
 
In 1971, many casinos adopted the [[Eisenhower dollar]] for use in machines and on tables.  When the dollar was replaced with the [[Susan B. Anthony dollar]] in 1979, most casinos reinstituted tokens, fearing confusion with quarters and not wishing to extensively retool their slot machines.  Those casinos which still use tokens in slot machines still use Eisenhower-sized ones.
 
  
In many jurisdictions, casinos are not permitted to use currency in slot machines, necessitating tokens for smaller denominations.  
+
In the United States, after the increase in the value of silver stopped the circulation of silver dollar coins around 1964, casinos rushed to find a substitute, as most [[slot machine]]s at that time relied heavily upon the coin. The [[Nevada State Gaming Control Board]], consulting with the U.S. Treasury, soon allowed casinos to start using their own tokens to operate slot machines.  
  
Tokens are being phased out of many casinos in favor of coin less machines which accept banknotes and print receipts for payout. (These receipts can also be inserted into the machines.)
+
In many jurisdictions, casinos are not permitted to use currency in slot machines, necessitating tokens for smaller denominations. More recently, tokens are being phased out of many casinos in favor of coin-less machines which accept banknotes and print receipts for payout.
  
=== Staff tokens ===
+
===Staff Tokens===
 
[[Image:Dbcm3s.jpg|thumb|A [[de Beers]] 3[[Old_pence_sterling|d]] staff salary token given to employees and only usable at their stores]]
 
[[Image:Dbcm3s.jpg|thumb|A [[de Beers]] 3[[Old_pence_sterling|d]] staff salary token given to employees and only usable at their stores]]
 +
Under some circumstances, staff tokens may be issued to the staff members of businesses in lieu of coins. In the United States during the 1800s, the argument supporting token payment to staff members was the shortage of coins in circulation; in reality employees were often forced to spend their wages in the [[company store]] at highly inflated prices. This resulted in a dramatic lowering of the employee’s actual salaries and disposable incomes.
  
Staff tokens were issued to staff of businesses in lieu of coin. In the 1800s the argument supporting payment to staff was the shortage of coin in circulation, but in reality employees were forced to spend their wages in the [[Truck system|company's stores]] at highly inflated prices - resulting in an effective dramatic lowering of their actual salary and disposable income.
+
===Other Tokens===
 +
Railways and public transport agencies often use [[fare tokens]] to sell public transportation rides. Businesses such as [[car wash]]es, [[video arcade]]s, and [[parking garages]] also make use of such coins. Various [[commemorative coins]] may also be produced with no monetary value to distribute by a company, country or organization. Historically, various church organizations gave tokens to members passing a religious test prior to the day of [[communion]]; the token was required the next day for entry to the services. While this practice was mostly used in [[Scottish Protestant]] churches, some U.S. churches issued communion tokens.  Generally, these were [[pewter]], often cast by the minister in church-owned molds. Replicas of these tokens have more recently been made available for sale at some of the churches that formerly followed this practice.
  
=== Other sources of tokens ===
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==Coin Collecting==
 +
[[Coin collecting]] is the collecting or trading of coins or other forms of legally minted [[currency]]. Frequently collected coins often include those that were in circulation for only a brief time, those that are considered rare because they were only minted for a short time, coins that were minted with errors, or foreign coins. Though both are closely related, coin collecting as a [[hobby]] can be differentiated from [[numismatics]] in that the latter is the scientific study of currency.
  
Railways and public transport agencies used [[fare tokens]] for years, to sell rides in advance at a discount, or to allow patrons to use turnstiles geared only to take tokens (as opposed to coins, [[currency]], or [[fare cards]]).
+
The most famous and widely collected coins of antiquity are ancient [[Roman]] coins and [[Greek]] coins. Non-[[monetize]]d [[bullion coins]], made of silver or gold, or, rarely, other metals such as [[platinum]] or [[palladium]] are often intentionally produced for collectors or investors of precious metals.  Examples of modern gold collector coins include the United States [[American Gold Eagle]], the [[Canadian Gold Maple Leaf]], and the [[South Africa]] [[Krugerrand]].  The U.S. Eagle coin has a [[face value]] of ten U.S. dollars while the Double Eagle has a [[face value]] of twenty U.S. dollars. The Canadian Gold Maple Leaf also has nominal face value, though the Krugerrand does not.
  
* [[Car wash]]es - Though their use has decreased in favor of coins and [[credit card]]s
+
In terms of its value as a collector's item, a coin is generally made more or less valuable by its condition, historical significance, rarity, beauty and general popularity with collectors. If a coin is deeply lacking in any of these, it is unlikely to be worth much.
* [[Video arcade]]s
+
Bullion coins are also valued based on these factors, but are more so valued on the gold or silver comprising them.
* [[Parking garage]]s
 
* [[Rapid_transit|Subways]]
 
* [[Phone booth|Public telephone booth]]s in countries with unstable currency were usually configured to accept token coins that were sold by the telephone company for variable prices. This system was in effect in [[Brazil]] until 1997 when magnetic cards were introduced. The practice was also recently discontinued in Israel,<ref>http://www.mr-t.co.il/catalog3.html</ref> leading to a trend of wearing the devalued tokens from necklaces.<ref>http://www.shekynecky.com/catalog.aspx?Merchant=shekynecky2&DeptID=227919</ref>
 
* [[Fast food]] [[restaurant]]s - Often given to children to collect and redeem for prizes
 
* [[Niceties token]] - A token to encourage politeness.
 
* [[Commemorative coins]] have been produced with no monetary value to distribute by a company, country or organization.
 
  
In [[North America]] tokens were originally issued by traders from the 1700s in regions where national or local colonial governments did not issue enough small denomination coins for circulation. They were later used to create a [[monopoly]]; to pay labour; for discounts (pay in advance, get something free or discounted); or for a multitude of other reasons. In the [[United States]], a well-known type is the [[wooden nickel]], a [[Nickel (United States coin)|five-cent]] piece distributed by cities to raise money for their anniversaries in the 1940s to 1960s.
+
===Superstitious Beliefs===
 +
Many societies believe damaged coins, such as those bent or minted with an irregular marking, are believed to be [[lucky]]. In particular, holed coins produced throughout the 1830s until the 1950s in England were often collected by various shopkeepers, soldiers, or generally superstitious individuals in the belief that they carried good luck. Bent coins, such as the [[crooked sixpence]] of the nursery rhyme WHAT, were also considered to bring luck to the individual who held it. In Medieval Great Britain, coins were often intentionally bent to be offered as gifts, when taking a vow, or as part of a cure. These coins were often offered to a saint in order for the intended purposes to take place. A widespread practice continues to exist in which a coin in placed under the mast of any new boat in order to bring the vessel good luck.  
  
Local stores, saloons and mercantiles, would issue their own tokens as well, spendable only in their own shops. [[Railways]] and [[public transport]] agencies have used fare tokens for years to sell rides in advance at a discount. Many transport organizations still offer their own tokens for [[bus]] and [[Rapid transit|subway]] services, toll bridges, tunnels, and highways, although the use of [[computer]]-readable tickets has replaced these in some areas.
+
==Modern Coinage==
 
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[[Image:50p-Britishlion1997-reverse.jpg|thumb|left|British fifty pence coin]]
Churches used to give tokens to members passing a religious test prior to the day of [[Closed communion|communion]], then required the token for entry. While mostly [[Scottish Protestant]], some U.S. churches used communion tokens.  Generally, these were [[pewter]], often cast by the minister in church-owned molds. Replicas of these tokens have been made available for sale at some churches recently.
+
Traditionally, the side of a coin carrying a bust of a monarch or other authority, or a [[national emblem]], is often called the [[obverse]] side, or heads. The other side may be called the [[reverse]], or tails. This is however an exception for some [[Chinese]] coins, most [[Canadian]] coins, the British [[twenty pence]] coin, and all [[Japan]]ese coins.
  
 +
The orientation of the obverse with respect to the reverse differs between countries. Some coins have [[coin orientation]], where the coin must be flipped vertically to see the other side; other coins, such as British coins, have [[medallic orientation]], where the coin must be flipped horizontally to see the other side. The [[exergue]], or the space on a coin beneath the main design, is often used to show the coin's date, though it may also contain a [[mintmark]], [[privy mark]], or left blank.
  
 +
Coins that are not round usually have an odd number of sides, with the edges rounded off.  This is so that the coin has a [[constant diameter]], and will therefore be recognized by [[vending machine]]s. Coins can also be popularly used as a sort of two-sided [[die]] in order to choose between two options with a random possibility. One choice may be labeled [[heads]] and the other [[tails]]; a fair coin is defined to have the probability of heads of exactly 0.5.
  
 +
However, coins can be falsified to make one side weigh more than the other; these coins are said to be weighted. Weighted coins may produce an abundance of heads or tails for an individuals’ particular advantage. Other coins include [[bracteate]] which are made so thin that they can only be struck on one side. [[Bi-metallic coins]], or coins comprised of two metals, are sometimes used for higher values and for commemorative purposes; in the 1990s, France used a tri-metallic coin. Common circulating examples of bi-metallic or tri-metallic coins include the [[€1]], [[€2]], [[British £2]] and [[Canadian $2]].
  
 +
Coins can also come in various shapes and sizes; guitar-shaped coins were once issued in Somalia, Poland once issued a fan-shaped 10 złoty coin, and in 2002 [[Nauru]] issued a 10 dollar coin shaped in the form of Europe. [http://www.coinworld.com/news/101705/BW_1017.asp]
  
 
==Notes==
 
==Notes==
Line 183: Line 104:
  
 
==References==
 
==References==
* Denis R. Cooper: ''The art and craft of coinmaking. A history of Mining Technology''. London: Spink, 1988. ISBN 0-907605-27-3.
+
*Denis R. Cooper: ''The art and craft of coinmaking. A history of Mining Technology''. London: Spink, 1988. ISBN 0-907605-27-3.
* [http://rg.ancients.info/lion/article.html#ednref4 A Case for the World's First Coin: The Lydian Lion]
+
*[http://rg.ancients.info/lion/article.html#ednref4 A Case for the World's First Coin: The Lydian Lion]
* "Church Tokens," ''[[New York Times]]'', 11 April 1993
+
*"Church Tokens," ''[[New York Times]]'', 11 April 1993
 +
*The Concise Oxford Dictionary of Archaeology. [http://www.answers.com/coin Coin]. Oxford University Press, 2002. Retrieved 2 October, 2007. 
 +
*The Dictionary of English Folklore. [http://www.answers.com/coin Coin]. Oxford University Press, 2000. Retrieved 2 October, 2007.
 +
*The Columbia Electronic Encyclopedia. [http://www.answers.com/coin Coin]. Columbia University Press, 2003. Retrieved 2 October, 2007.
  
==External links==
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==External Links==
 
*[http://www.money.org ANA]
 
*[http://www.money.org ANA]
 
*[http://www.apnaonline.ca Atlantic Provinces Numismatic Association] providing news, events, latest releases from around the world, forums, and much more.
 
*[http://www.apnaonline.ca Atlantic Provinces Numismatic Association] providing news, events, latest releases from around the world, forums, and much more.
 
*[http://www.coinfacts.com/ CoinFacts.com - The Internet Encyclopedia of US Coins] Free information on United States Coins, including pricing, rarity, and historical information.
 
*[http://www.coinfacts.com/ CoinFacts.com - The Internet Encyclopedia of US Coins] Free information on United States Coins, including pricing, rarity, and historical information.
* [http://www.greekandromancoins.com/downloads.php Ancient Greek Coins: Free Coin Organizer]
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*[http://www.greekandromancoins.com/downloads.php Ancient Greek Coins: Free Coin Organizer]
* [http://www.coincat.com Coincat] - An online coin catalog
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*[http://www.coincat.com Coincat] - An online coin catalog
* [http://www.cointalk.org/ Coin Talk Forum] - Community website for numismatists and coin collectors 
 
 
*[http://dihu.ancients.info Numismopolis-Ancient Coin collecting, Ancient Minting, and Experimental archaeology.] - includes information about collecting and ancient minting   
 
*[http://dihu.ancients.info Numismopolis-Ancient Coin collecting, Ancient Minting, and Experimental archaeology.] - includes information about collecting and ancient minting   
* [http://ChallengeCoinAssociation.org Challenge Coin Association]   
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*[http://ChallengeCoinAssociation.org Challenge Coin Association]   
* [http://www.coinpage.com Coin Image Database ]   
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*[http://www.coinpage.com Coin Image Database ]   
* [http://www.silver-coins.org Silver Coins] - How to identify counterfeit silver coins.
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*[http://www.coinlink.com CoinLink] - Coin news, Directory of Numismatic sites   
* [http://www.coinlink.com CoinLink] - Coin news, Directory of Numismatic sites   
 
* [http://worldcoingallery.com/ World Coin Gallery] - Self-proclaimed largest coin site in the world, with over 10,000 coins 
 
* [http://rg.ancients.info/lion/article.html World's First Coin] The Lydian Lion
 
 
 
 
 
 
*[http://worldcoingallery.com/ World Coin Gallery] - Self-proclaimed largest coin site in the world, with over 10,000 coins   
 
*[http://worldcoingallery.com/ World Coin Gallery] - Self-proclaimed largest coin site in the world, with over 10,000 coins   
 
*[http://rg.ancients.info/lion/article.html World's First Coin] The Lydian Lion
 
*[http://rg.ancients.info/lion/article.html World's First Coin] The Lydian Lion
*[http://sodo.cool.ne.jp 中国古銭譜]("Chinese old coins directory," site in Japanese with texts and photos of many Chinese, Japanese, Korean&Vietnamese old coins)
 
*[http://www.cbpmc.com.cn/qbjs/index.jsp 中国造币—钱币鉴赏]("Chinese made coins-seeing coins," site in Simplified Chinese about Chinese coins)
 
 
*[http://www.greekandromancoins.com/downloads.php Ancient Greek Coins: Free Coin Organizer]
 
*[http://www.greekandromancoins.com/downloads.php Ancient Greek Coins: Free Coin Organizer]
*[http://www.buntetsu.net/mbc/coin.html Museum of Bank notes and Coins](in Japanese)
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*[http://numispedia.org/AAFES/ A reference site on '''AAFES pogs''': tokens currently in use by US armed forces overseas.]
 
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*[http://members.fortunecity.com/tokenguy/tokentales/  An educational site on trade tokens in the USA, Token Tales. ]
* [http://www.tokencoins.com/main.htm The currency tokens of Strachan and Co]
 
* [http://www.exonumia.com Exonumia]
 
* [http://www.vecturist.com Token Collecting Organization]
 
* [http://www.unsogno.net/conders/ ''The Conder Tokens Enthusiast''] - resources regarding 18th Century English Provincial token coinage
 
* [http://numispedia.org/AAFES/ A reference site on '''AAFES pogs''': tokens currently in use by US armed forces overseas.]
 
* [http://members.fortunecity.com/tokenguy/tokentales/  An educational site on trade tokens in the USA, Token Tales. ]
 
 
 
  
  
 
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Revision as of 07:38, 8 October 2007


Coins from around the world

A coin is a metal token, usually in the shape of a disc, often of a specific weight and value, and most commonly issued by a government. Coins are used as a form of money in transactions of various kinds, from the everyday circulation of the United States quarter, to the storage of vast amounts of bullion. Coins can be stamped with various designs and inscriptions as a guarantee of its exchange value. Coins made for circulation, or general monetized use, are usually used for lower-valued units, while banknotes are often issued for higher values. In most money systems, the highest value coin is worth less than the lowest-value note; additionally, the face value of circulation coins is usually higher than the gross value of the metal used in making them.

Historically, a great number of coinage metals, including alloys, and other materials have been used practically, impractically, artistically, and experimentally in the production of coins for circulation, collection, and metal investment. Materials have included gold, silver, nickel, bronze, copper, or aluminum, or a combination of such metals. Today, coins are most commonly used for monetary exchange and for collecting purposes; such tokens have often been referred to as "History in Your Hands."

History

One of the earliest coins, an early 7th century B.C.E. one-third stater coin from Lydia.

Many archaeologists believe independent coinage to have originated in the 7th century B.C.E. among the early peoples of Lydia, the Aegean islands, or China. The question of the world's first coin if often debated; while it is believed by many historians that the Lydian Lion trite is the world's oldest coin, some argue that India's karshapanam holds such a title. Other historians argue that Indian coins were developed from Western prototypes, which the Indians came in contact with through Babylonian traders. [1]

Despite the debate, the most widely held belief is that the world’s first coins were minted in Lydia between 643 and 630 B.C.E. These coins were made of electrum, a naturally occurring yellow mixture of gold and silver, and were stamped with simple designs, markings, and later, inscriptions. Early coins contained no writing but often depicted the silhouettes of symbolic animals. A portion of these coins were found buried under a Lydian temple dating from the 6th century B.C.E.; as such, these coins are believed by many historians to have been used in ceremonial exchanges and not in everyday trade. The majority of coins recovered from this area are believed to have been manufactured under King Croseus.

File:ClaudiusII(CNG).jpg
An ancient Greek coin, struck under Roman rule, circa 268 C.E.

Early Roman coins, dating back to the 3rd Century B.C.E., were minted first in precious metals but later in bronze and silver. Throughout the Chinese Zhou Dynasty, shells and other small particulars were used for trade and barter, replaced in the 3rd century C.E. by the use of holed, round coins. Macedonian leaders Phillip II and Alexander III introduced similar coinage practices to remaining mainland Europe in the 4th century C.E.; many of these coins included facets of Celtic art.

By the start of the 5th century C.E., many historians believe various coinage practices reached India by means of Persian trade contacts; early prototypes belonged to both the Mauyan and Kushan peoples. In the 6th century C.E., under Cyrus the Great Lydian coinage abandoned electrum in favor of gold; many of these coins depict a portrait of the King. This design was copied by the 7th century C.E. Greeks of Asian Minor. The first cast of copper money was recovered from a tomb of the Shang Dynasty and is believed to date back to the 11th century B.C.E.. Early coins of the Byzantine Empire include thin gold coins bearing the image of the Christian cross and various Byzantine emperors.

Production

Ancient coins were often produced using a hammer and anvil surface; early coins minted in the U.S. were often die-struck by hand until the establishment of the first U.S. mint in 1792. In the mid 16th century, coin production showed vast improvements with the introduction of the mill and screw machine which helped to standardized coin production worldwide. Since the early 1700s, various minting presses have been used to craft coins, beginning with screw presses and progressing, in the 1800s, towards steam driven presses.

Since the 17th century, milled or lettered edges were imprinted on many coins to discourage the devaluing of gold and silver coins by shaving. Coins with milled edges showed that none of the valuable metal comprising the coin had been removed from the coin. Prior to the use of milled edges, many un-milled British sterling silver coins were known to be shaved to almost half of their minted weight. This form of debasement in Tudor England led to the formulation of Gresham's Law; under this law, the monarch would periodically recall circulating coins, paying only bullion value of the silver, and re-mint them.

Modern minting techniques often involve electric and hydraulic presses. Contemporary coins are usually stamped from rolled mental blanks, then milled; designs impressed upon the coins are the result of coining presses. [2]. Over time, various governments have opted to abandon particular coinage materials. Since 1934 and the abandonment of the U.S. domestic gold standard, U.S. coins have ceased to be made from gold; in 1965, the U.S. mint abandoned silver. In the mid-1990’s, the European Union adopted a common currency, known at the Euro; inaugurated in 1999, Euro coins and notes were circulated throughout the Union, entirely replacing the former currencies of most EU members. In 2004, Canada introduced the first colored coin, a quarter featuring a colored poppy.

Value

A bronze coin (5 Zhu, 五銖) of the Chinese Han Dynasty, circa 1st century B.C.E.

Most coins are made of a base metal, their value coming from their status as fiat money. This means that the value of the coin is decreed by government law, and thus is determined by the free market. This causes such coins to be monetary tokens in the same sense that paper currency is; though paper currency is not backed directly by metal, it is supported by a government guarantee of international exchange of goods or services. Because fiat money is backed by a government guarantee, and its value determined by the free market, in practice there is very little economic difference between the two types of money.

Sometimes, coins are minted that have fiat values lower than the value of their component metals. This is often due to inflation, as market values for the metal overtake the fiat declared face value of the coin. Before 1964, examples of this phenomenon included the U.S. dime, quarter, half dollar, and dollar; also included is the U.S. nickel, and the U.S. penny before 1982. As a result of the increase in the value of copper, the United States greatly reduced the amount of copper in each penny. Since 1982, United States pennies are made of 97.5% zinc coated with 2.5% copper.

Extreme differences between fiat values and metal values of coins can cause coins to be removed from the market by illicit smelters interested in the value of their metal content. In fact, the United States Mint, in anticipation of this practice, implemented new interim rules on December 14, 2006, subject to public comment for 30 days, which criminalize the melting and export of pennies and nickels.[3] Violators can be punished with a fine of up to $10,000 and imprisoned for a maximum of five years.

File:3sovriegns.jpg
Gold sovereigns and a Krugerrand

To distinguish between these two types of coins, as well as from other forms of tokens which have been used as money, some monetary scholars have attempted to define a true coin by three criteria. Firstly, the token must be made of a valuable material, and trade for close to the market value of that material. Secondly, the coin must be of a standardized weight and purity. Finally, it must be marked to identify the authority that guarantees the content.

Throughout history, governments have been known to create more coinage than their supply of precious metals would allow. By replacing some fraction of a coin's precious metal content with a base metal, often copper or nickel, the intrinsic value of each individual coin can be reduced, or debased. This allows the coining authority to produce more coins than would otherwise be possible. Debasement may also occur in order to make the coin harder and therefore less likely to be worn down over time. Debasement of money almost always leads to price inflation unless price controls are also instituted by the governing authority.

Tokens

File:Bbp Alt.jpg
A rare and historic Bechuanaland Border Police canteen token.

In the study of numismatics, token coins or tokens are coin-like objects used in place of coin currency. Tokens may have a denomination shown or implied either by size, color or shape. They are often made of cheaper materials than the precious metals of coins, and can include copper, pewter, aluminium, brass and tin, though bakelite, leather and other less durable materials may also be used.

The key point of difference between a token and a coin is that a coin is often issued by a local or national authority and is freely exchangeable for goods or other coins, whereas a token has a more limited use and is often issued by a private company, group, association or individual.

Currency Tokens

The first set of Strachan and Co currency tokens - recognised as South Africa's first indigenous currency.

Currency tokens, or tokens issued by a particular company or individual that are sanctioned by a local government, may also serve as a particular form of currency. The issuance of currency tokens may result from a severe shortage of money or a government’s inability to issue its own coinage. In effect, the organization crafting the sanctioned currency tokens may serve as the regional bank. One example includes the recognition of trade tokens of Strachan and Company, issued in South Africa in 1874 which, today, are considered the country's first circulating indigenous currency.

Currency tokens may also be issued in times of high inflation. An example of this includes former Italian and Israeli telephone tokens which could be used for one telephone call despite consistent inflation of prices. Under some circumstances, New York City subway tokens could also be accepted in trade, or used in parking meters as the tokens contained a set value.

Barter Tokens

File:Coin substitute pogs.jpg
Pogs, used by AAFES at overseas military bases.

From the 17th to the 19th centuries throughout the British Isles and North America, barter tokens, or trade tokens, were commonly issued by traders in times of acute currency shortage. Under such circumstances, barter tokens enabled trading activities to proceed. The token was, in effect, a pledge redeemable in goods but not coins. Though the tokens never received official sanction from government authorities, they were widely accepted and circulated.

In 17th century England, the production of copper farthings was terminated during the English Civil War and a great shortage of small change resulted. This shortage was felt keenly due to the rapid growth of trade in small towns and cities; this, in turn, prompted both local authorities and private traders to issue tokens. These tokens were most commonly made of copper or brass, though pewter, lead and occasionally leather tokens were issued. Most were not given a specific denomination and were intended to pass as farthings. Thousands of towns and traders issued these tokens between 1648 and 1672, when official production of farthings resumed and private production was suppressed.

Aluminum trade token from Osage,Kansas.

Types of merchants that issued tokens include general stores, grocers, department stores, meat markets, drug stores, saloons, bars, taverns, barbers, coal mines, lumber mills, and various others. The era of 1870 thru 1920 marked the highest use of "trade tokens" in the United States, spurred by the proliferation of saloons, billiard halls, bakeries, and general stores.

Brass trade token from Fort Laramie, Dakota Territory.

Trade tokens may also be issued by a government for members of a military. Because of their weight, the U.S. Treasury Department does not ship coins to the Armed Forces serving overseas. Instead, officials of the Army and Air Force Exchange Service often make trade tokens, known as pogs, in denominations of 5, 10 and 25 cents. The pogs are about 38mm in diameter and feature various military-themed graphics.

Casino Tokens

Metal token coins may also be used in lieu of cash in some casino slot machines. Money may be exchanged for the token coins or chips at any casino cage, gaming table, or slot machine, or at a cashier station for slot token coins. These tokens are often interchangeable with money at the casino; generally the tokens have no value outside out of the casino.

In the United States, after the increase in the value of silver stopped the circulation of silver dollar coins around 1964, casinos rushed to find a substitute, as most slot machines at that time relied heavily upon the coin. The Nevada State Gaming Control Board, consulting with the U.S. Treasury, soon allowed casinos to start using their own tokens to operate slot machines.

In many jurisdictions, casinos are not permitted to use currency in slot machines, necessitating tokens for smaller denominations. More recently, tokens are being phased out of many casinos in favor of coin-less machines which accept banknotes and print receipts for payout.

Staff Tokens

A de Beers 3d staff salary token given to employees and only usable at their stores

Under some circumstances, staff tokens may be issued to the staff members of businesses in lieu of coins. In the United States during the 1800s, the argument supporting token payment to staff members was the shortage of coins in circulation; in reality employees were often forced to spend their wages in the company store at highly inflated prices. This resulted in a dramatic lowering of the employee’s actual salaries and disposable incomes.

Other Tokens

Railways and public transport agencies often use fare tokens to sell public transportation rides. Businesses such as car washes, video arcades, and parking garages also make use of such coins. Various commemorative coins may also be produced with no monetary value to distribute by a company, country or organization. Historically, various church organizations gave tokens to members passing a religious test prior to the day of communion; the token was required the next day for entry to the services. While this practice was mostly used in Scottish Protestant churches, some U.S. churches issued communion tokens. Generally, these were pewter, often cast by the minister in church-owned molds. Replicas of these tokens have more recently been made available for sale at some of the churches that formerly followed this practice.

Coin Collecting

Coin collecting is the collecting or trading of coins or other forms of legally minted currency. Frequently collected coins often include those that were in circulation for only a brief time, those that are considered rare because they were only minted for a short time, coins that were minted with errors, or foreign coins. Though both are closely related, coin collecting as a hobby can be differentiated from numismatics in that the latter is the scientific study of currency.

The most famous and widely collected coins of antiquity are ancient Roman coins and Greek coins. Non-monetized bullion coins, made of silver or gold, or, rarely, other metals such as platinum or palladium are often intentionally produced for collectors or investors of precious metals. Examples of modern gold collector coins include the United States American Gold Eagle, the Canadian Gold Maple Leaf, and the South Africa Krugerrand. The U.S. Eagle coin has a face value of ten U.S. dollars while the Double Eagle has a face value of twenty U.S. dollars. The Canadian Gold Maple Leaf also has nominal face value, though the Krugerrand does not.

In terms of its value as a collector's item, a coin is generally made more or less valuable by its condition, historical significance, rarity, beauty and general popularity with collectors. If a coin is deeply lacking in any of these, it is unlikely to be worth much. Bullion coins are also valued based on these factors, but are more so valued on the gold or silver comprising them.

Superstitious Beliefs

Many societies believe damaged coins, such as those bent or minted with an irregular marking, are believed to be lucky. In particular, holed coins produced throughout the 1830s until the 1950s in England were often collected by various shopkeepers, soldiers, or generally superstitious individuals in the belief that they carried good luck. Bent coins, such as the crooked sixpence of the nursery rhyme WHAT, were also considered to bring luck to the individual who held it. In Medieval Great Britain, coins were often intentionally bent to be offered as gifts, when taking a vow, or as part of a cure. These coins were often offered to a saint in order for the intended purposes to take place. A widespread practice continues to exist in which a coin in placed under the mast of any new boat in order to bring the vessel good luck.

Modern Coinage

File:50p-Britishlion1997-reverse.jpg
British fifty pence coin

Traditionally, the side of a coin carrying a bust of a monarch or other authority, or a national emblem, is often called the obverse side, or heads. The other side may be called the reverse, or tails. This is however an exception for some Chinese coins, most Canadian coins, the British twenty pence coin, and all Japanese coins.

The orientation of the obverse with respect to the reverse differs between countries. Some coins have coin orientation, where the coin must be flipped vertically to see the other side; other coins, such as British coins, have medallic orientation, where the coin must be flipped horizontally to see the other side. The exergue, or the space on a coin beneath the main design, is often used to show the coin's date, though it may also contain a mintmark, privy mark, or left blank.

Coins that are not round usually have an odd number of sides, with the edges rounded off. This is so that the coin has a constant diameter, and will therefore be recognized by vending machines. Coins can also be popularly used as a sort of two-sided die in order to choose between two options with a random possibility. One choice may be labeled heads and the other tails; a fair coin is defined to have the probability of heads of exactly 0.5.

However, coins can be falsified to make one side weigh more than the other; these coins are said to be weighted. Weighted coins may produce an abundance of heads or tails for an individuals’ particular advantage. Other coins include bracteate which are made so thin that they can only be struck on one side. Bi-metallic coins, or coins comprised of two metals, are sometimes used for higher values and for commemorative purposes; in the 1990s, France used a tri-metallic coin. Common circulating examples of bi-metallic or tri-metallic coins include the €1, €2, British £2 and Canadian $2.

Coins can also come in various shapes and sizes; guitar-shaped coins were once issued in Somalia, Poland once issued a fan-shaped 10 złoty coin, and in 2002 Nauru issued a 10 dollar coin shaped in the form of Europe. [2]

Notes

  1. Government of Kerala Official website M. Mitchiner, pp.741-742.
  2. The Columbia Electronic Encyclopedia. Coin. Columbia University Press, 2003. Retrieved 2 October, 2007.
  3. [1] The United States Mint Pressroom

References
ISBN links support NWE through referral fees

  • Denis R. Cooper: The art and craft of coinmaking. A history of Mining Technology. London: Spink, 1988. ISBN 0-907605-27-3.
  • A Case for the World's First Coin: The Lydian Lion
  • "Church Tokens," New York Times, 11 April 1993
  • The Concise Oxford Dictionary of Archaeology. Coin. Oxford University Press, 2002. Retrieved 2 October, 2007.
  • The Dictionary of English Folklore. Coin. Oxford University Press, 2000. Retrieved 2 October, 2007.
  • The Columbia Electronic Encyclopedia. Coin. Columbia University Press, 2003. Retrieved 2 October, 2007.

External Links


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