Coins are usually more efficient than banknotes because they last longer: banknotes last only about four years compared with 30 years for a coin. Usually, the highest value coin in circulation (excluding bullion coins) is worth less than the lowest-value note. Currently coins are used as money in everyday transactions, circulating alongside banknotes. If the difference becomes significant, the issuing authority may decide to withdraw these coins from circulation, possibly issuing new equivalents with a different composition, or the public may decide to melt the coins down or hoard them (see Gresham's law). In the last hundred years, the face value of circulated coins has occasionally been lower than the value of the metal they contain, primarily due to inflation. Now most coins are made of a base metal, and their value comes from their status as fiat money-the value of the coin is established by law. On the other hand, they induced manipulations, such as the clipping of coins to remove some of the precious metal. Precious metal-based coins had the advantage of carrying their value within the coins themselves. Gold and silver have been the most common forms of money throughout history (see History of money). The obverse of a coin is commonly called heads, because it often depicts the head of a prominent person, and the reverse is known as tails.Ī coin is generally made of metal or an alloy, or sometimes of human-made materials. The faces of coins or medals are sometimes called the obverse and the reverse, referring to the front and back sides, respectively. Coins often have images, numerals, or text on them. They are most often issued by a government.
They are standardized in weight, and produced in large quantities at a mint in order to facilitate trade. A coin is a small object, usually round and flat, used primarily as a medium of exchange or legal tender.
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