Information on coins and currency
A coin is an object that is used for the exchange of goods or services. They normally have an image on them, such as a king’s head, and writing to show the year of the coin. Gold and silver were common forms of money throughout history as they had the advantage of carrying value within the coin. Coins offer a ‘store of value’ which provides a justification for investment. Most coins are now made of a base, or ordinary metal, whose value comes from its status in law. Coins are used in ordinary transactions and used alongside banknotes. However, coins can be superior to banknotes as they last longer than 30 years.
The grading of coins
The condition of a coin determines its grading which in turn affects the market value of a coin. Coins are graded on a scale from 1 to 70, with 70 being the highest grade. The grade of a coin is based on these five factors. Firstly, strike, which means that the coin’s design is sharp. A well-struck coin will have sharp details and lettering. Secondly, a coin with good surface preservation will have few scratches or marks. Good surface preservation means that the coin’s surface is in good condition. Thirdly, a coin with good colour will be uniform in its shade and free of any blemishes. Fourthly, a coin with good lustre will be shiny and reflective. The reflectivity of the coin’s surface determines its lustre. Fifthly, visual appeal is about the attractiveness of the coin.
An attractive coin will be well-struck and have proper surface preservation with good lustre, good colour, and no major flaws.
The market value of a coin
The demand for the coin determines its market value. Therefore, coins which are in high demand are worth more than coins in lower demand. Demand is based on the coin’s grade and rarity. Coins in higher grades are worth more than coins in lower grades. Rare coins tend to be worth more, than common coins, due to their scarcity.
A professional coin grading service can help you to determine the coin’s grade and market value. However, you can grade coins yourself. Firstly, use a magnifying glass to examine the coin’s surface for scratches, marks, and other blemishes. Secondly, look for any signs of wear and tear, such as rounded edges or worn lettering. Thirdly, judge the coin’s lustre and colour. However, the grading of coins is a subjective process, and experts can disagree on the grade of a given coin.
Concerns over clean coins
Collectors often perceive clean coins as damaged coins. This is because the process of cleaning a coin can easily damage its surface, leaving behind scratches, swirls, and other imperfections. These imperfections can be difficult to see with the naked eye, but they are visible to experienced collectors. Even a small amount of damage can significantly reduce the value of a coin. Excessive cleanliness leads to coins losing their patina. Patina is a thin layer of oxidation that forms on the surface of a coin over time. It gives the coin a unique appearance and can add to its value.
Cleaning a coin removes the patina, leaving it with an artificial, unnatural look. Perfectly, clean coins can be difficult to authenticate. Collectors rely on the patina and other surface features to authenticate a coin. Cleaning a coin can remove these features and make it more difficult for collectors to assess a coin. Also, collectors dislike the appearance of clean coins. They prefer the natural, aged appearance of coins that have not been cleaned.
Abrasive cleaning methods can scratch the coin’s surface which can decrease the coin’s grade and value. Harsh chemicals can damage the coin’s patina which reduces the coin’s value. Cleaning can remove details from the coin’s design and can make it difficult to identify the coin and reduce its value. There is a problem with authentication as collectors rely on the patina and other surface features to verify coins.
Copper and Bronze coins before 1900
Copper and bronze coins were used throughout the world for centuries before 1900. These are four examples from across the world. Firstly, ancient Greek coins which were among the first to use copper and bronze for coinage. These coins were typically made of electrum, a natural alloy of gold and silver. However, they also produced coins made of pure copper and bronze. Secondly, Roman coins which also used copper and bronze for coinage. Their coins were normally made of ‘aes’, a bronze alloy that also contained tin and lead. Thirdly, American coins which have a shorter history. The United States has been using copper and bronze coins since it was founded. The first American coins were made of copper, but they moved to bronze in 1864. Fourthly, British coins which used copper and bronze for centuries.
Early, British coins were made of bronze, but they changed to copper in the 18th century. In 1860, the British switched to bronze pennies.
UK bronze coins from 1900 to 1967
Bronze coins were used in the United Kingdom from 1900 to 1967. These coins were the penny, the halfpenny, and the farthing. The penny was the smallest denomination of British coinage from 1900 to 1967. It was made of bronze and weighed 9.45 grams. The front of the penny featured a portrait of the reigning monarch, while the reverse featured a seated figure of Britannia. The halfpenny was the second-smallest denomination of British coinage from 1900 to 1967. It was made of bronze and weighed 4.73 grams.
The face of the halfpenny featured a portrait of the reigning monarch, while the reverse featured a sailing ship. The Farthing was the smallest denomination of British coinage from 1900 to 1956. It was made of bronze and weighed 2.37 grams. The front of the farthing featured a portrait of the reigning monarch, while the reverse featured a wren. The penny, halfpenny, and farthing were all discontinued, in 1967, when the United Kingdom became a decimal currency.
Bronze coins from 1900 to 1967 were made of bronze, an alloy of copper and tin. They featured a portrait of the reigning monarch on the front and a variety of designs on the reverse, including ships and wrens. Bronze coins from 1900 to 1967 are popular among collectors as they are a reminder of a period of history.
UK Commemorative Crowns
Commemorative crowns are special coins issued by the Royal Mint to celebrate notable events or anniversaries. They are made of silver or gold and have a higher face value than ordinary coins. Commemorative crowns are not intended for everyday use, but rather as collectors’ gifts. The first commemorative crown was issued in 1935 to celebrate the Silver Jubilee of King George V. Since then, commemorative crowns, have marked events, such as royal jubilees and coronations, births and marriages of members of the royal family, and significant anniversaries of historical events.
Commemorative crowns are produced in limited quantities which makes them desirable to collectors. They are a useful investment, as their value can increase over time. The 1953 Coronation Crown, the 1977 Silver Jubilee Crown, the 1981 Wedding Crown, the 2002 Golden Jubilee Crown, the 2012 Diamond Jubilee Crown, and the 2022 Platinum Jubilee Crown are all popular coins.
When purchasing a ‘commemorative crown’ the buyer needs to understand the coin’s history, rarity, and condition. Also, the buyer should purchase from a reputable dealer who is trustworthy. This is to avoid the counterfeit coins that are on the market. Finally, commemorative crowns are valuable items, so they need to be stored properly to protect them from damage.
Modern Decimal Coins after 1971
Modern decimal coins are used in most countries in the world. They are based on the decimal system, which means that each coin is worth a multiple of ten. This makes it easy to calculate the value of a collection of coins, simply by adding up the values of the individual coins.
Coins, after 1971, are made of a variety of metals, including copper, nickel, silver, and gold. The type of metal used depends on the value of the coin. For instance, low-value coins are typically made of copper, while higher-value coins are typically made of silver or gold. Modern coins feature a variety of designs on the front and the reverse. The front of the coin has a portrait of the head of state or a symbol of the country. Whereas the back of the coin often shows a national symbol or landmark.
Coins in different countries
The United Kingdom moved to a decimal currency system in 1971. The UK’s coins are the penny (1p), two pence (2p), five pence (5p), ten pence (10p), twenty pence (20p), fifty pence (50p), one pound (£1), and two pound (£2) coins. The United States switched to a decimal currency system in 1792. The main U.S. decimal coins are the dime (10 cents), quarter (25 cents), half dollar (50 cents), and one dollar (one hundred cents) coins. The Eurozone is a group of 19 European countries that use the euro as their currency. The Eurozone’s decimal coins are the one cent, two cents, five cents, ten cents, twenty cents, fifty cents, one euro, and two euro coins.
Conclusion
Old coins often have more sentimental value than investment value. If there is sufficient detail remaining on the coin then it is often worth more than a scrap coin without the detail. The detail of the coin includes the date, the legend, and the jewellery of the monarch. However, modern decimal coins are a convenient and efficient way to pay for goods.
UK coins and currency: the sovereign and crown
Nineteenth-century UK coins were based on the historical pound sterling system. The pound was divided into 20 shillings with each shilling divided into 12 pence.
UK coins in circulation in the 19th century
A sovereign (1 pound sterling) was a gold coin that was the largest and most valuable coin in circulation. It was first produced in 1817 and featured the portrait of the reigning king or queen. Also, the half-sovereign (10 shillings) was a half-gold coin that was used to pay for larger purchases.
A crown (5 shillings) was a silver coin that was larger than the other silver coins in circulation. It was frequently used as a commemorative coin. A half-crown (2 shillings and sixpence) was a silver coin which was the most common silver coin in society. Also, the florin (two shillings) was a silver coin that was introduced in 1849 and was named after the Italian florin. A shilling (12 pence) was a silver coin that was the most common coin in circulation. The sixpence (6 pence) was a less common silver coin half the size of a shilling while a threepence (3 pence) was a silver coin one-quarter the size of a shilling.
A penny (1 pence) was bronze and a smaller and less valuable coin in circulation. A halfpenny (1/2 pence) was a bronze coin that was worth half a penny. A farthing (1/4 pence) was a bronze coin that was worth one-quarter of a penny. The sovereign was used for larger purchases, such as land and property while the half-sovereign and crown were used for medium-sized purchases such as on furniture. The shilling, sixpence, and threepence were used for ordinary expenditure such as food and drink. The penny, halfpenny, and farthing were used for smaller purchases such as newspapers.
The Royal Mint
The Royal Mint makes the official coins in the United Kingdom. It produces commemorative and bullion coins. Commemorative coins are for special occasions whereas bullion coins contain precious metals like gold or silver. Also, a proof coin is the highest quality coin produced by the Royal Mint. These coins have a greater value, than the metal itself, because they are special commemorative coins. They are superior to circulating coins and are packaged in special presentation boxes.
The Britannia and Lunar series of coins are also interesting. The Britannia is a silver bullion coin that is the female personification of Britain with a Britannia design on the back. The Lunar Series is a yearly collection of silver bullion coins celebrating the Chinese zodiac.
Precious Metals
Gold and Silver
Precious metals are rare and have a high economic value. They are ductile and have high lustre. Traditional precious metals include gold, silver, and platinum and these precious metals have been used to make coins.
Types of Precious Metals
Gold is a renowned yellow precious metal that is highly resistant to corrosion. Silver is a shiny grey metal that is slightly less dense than gold. It is also highly resistant to corrosion. Platinum is a silvery-white metal that is denser than gold or silver and again is resistant to rust.
Uses of Precious Metals
Precious metals are useful investments, as they are a safe asset in periods of economic turbulence. The metals can be bought in many forms, including physical metal (i.e. bullion), coins, and exchange-traded funds or ETFs.
Precious metals are valuable because they are rare, durable, malleable and ductile. They have a wide range of industrial applications. For example, silver is a good conductor of electricity and heat. Gold, silver and platinum are all precious metals that are used in jewellery.
Precious metal coins that are produced in the United Kingdom
Gold Britannia
It is the flagship gold coin of the Royal Mint and is produced in a variety of sizes, including 1 ounce, 1/2 ounce, 1/4 ounce, and 1/10 ounce. The coin has a purity of 999.9 fine gold and is legal tender in the UK.
Silver Britannia
The Silver Britannia is a silver version of the Gold Britannia. It is minted in the same sizes as before. Sizes, including 1 ounce, 1/2 ounce, 1/4 ounce, and 1/10 ounce. It has a purity of 999 fine silver. It is also legal tender in the UK.
Platinum Britannia
The Platinum Britannia is similar to the above coins and has a purity of 999.5 fine platinum.
Sovereign
The Sovereign is a gold coin that has been around, in the UK, since the 15th century and has a purity of 916.7 fine gold. It is legal tender in the UK.
Half Sovereign
The Half Sovereign is a half-ounce gold coin that has a purity of 916.7 fine gold and, again, is legal tender in the UK.
Queen’s Beasts
The Queen’s Beasts are a series of gold and silver coins that feature the ten heraldic beasts that were displayed at Queen Elizabeth’s Coronation in 1953.
Factors to consider when purchasing precious metal coins
Firstly, the type of precious metals such as gold, silver, and platinum.
Secondly, the purity of the metal is measured in fine. Fine gold is 999.9 fine, while fine silver is 999 fine while platinum is frequently made at a purity of 999.5 fine.
Thirdly, the size of the coin, as precious metal coins are produced in a variety of sizes, from 1 ounce to 1/10th of an ounce (approximately 28 grams). The larger the coin then, generally, the higher the price as there is more precious metal in a larger coin.
Fourthly, the mintage of the coin. The mintage of a coin is the number of coins that were produced in a particular year. A lower mintage makes a coin rarer and therefore more valuable.
Fifthly, coins in a better condition, tend to be more valuable. Uncirculated coins are often more valuable because they are in better condition.
Coins and currency and bulk coins can be bought from Newcastle Coin Dealers. The shop is at 7 Nile Street and close to the North Shields metro and bus interchange