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A coin is a small, flat, circular piece of metal or plastic used primarily as a medium for exchange or legal tender. They are standardized in weight and produced in large quantities at mints to promote trade. They are usually issued by the government.
Coins are usually made of metal or alloy, or sometimes synthetic materials. They are usually disc-shaped. Coins made of precious metals are stored in large quantities as gold coins. Other coins are used as money in daily transactions and circulate with notes. Generally, the highest value coins in circulation (i.e. excluding gold coins) are worth less than the lowest value notes. In the past 100 years, for example, due to inflation, the face value of coins in circulation has sometimes been lower than the value of the metal they contain. If the difference becomes large, the issuer may decide to withdraw the coins from circulation, may issue new equivalents with different components, or the public may decide to melt the coins or ho product (see Gresham's law).
For some gold silver coins made of copper, silver or gold (few other metals, such as platinum or palladium), there are exceptions to the rule that the face value is higher than the content value, and these coins are intended to be used by collectors or investors of precious metals. Examples of modern gold coins / investor gold coins include British sovereignty, American Golden Eagle, Canadian golden maple leaf and krugmand of South Africa. Eagle, maple leaf and sovereign coins have nominal (purely symbolic) denominations; Krugman does not.
Historically, a large number of minting metals (including alloys) and other materials (such as porcelain) have been used to produce coins for circulation, collection and metal Investment: compared with other coins, gold and silver coins can usually store more guaranteed metal quantity and purity gold bars more easily.
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