Silver coin
This article includes a list of general references, but it lacks sufficient corresponding inline citations. (August 2023) |
Silver coins are one of the oldest mass-produced form of
As with all
Other than collector's silver coins, silver bullion coins are popular among people who desire a "hedge" against currency inflation or store of value. Silver has an international currency symbol of XAG under ISO 4217.
Origins and early development of silver coins
The earliest coins in the world were minted in the kingdom of
More or less simultaneously with the development of the Lydian and Greek coinages, a coinage system was developed independently in
In the
The coins of the Greeks were issued by a great number of
In the 4th century BC, the
While much of the Greek world was being transformed into monarchies, the
Although many regions ruled by Hellenistic monarchs were brought under Roman control, this did not immediately lead to a unitary monetary system throughout the Mediterranean region. Local coinage traditions in the eastern regions prevailed, while the denarius dominated the western regions. The local Greek coinages are known as Greek Imperial coins.
Apart from the Greeks and the Romans, other peoples in the Mediterranean region also issued coins. These include the Phoenicians, the Carthaginians, the Jews, the Celts and various regions in the Iberian Peninsula and the Arab Peninsula.
In regions to the East of the Roman Empire, that were formerly controlled by the Hellenistic
Middle Ages
In the
As the power balance within the caliphate changed (weaker central power), the names of local leaders, or feudal lords, were increasingly indicated on the dirhems. Various Arabic dynasties continued to issue dirhems for centuries after the demise of the classical caliphates. There is a great variety of types, although retaining the inscriptions and ornaments only formula.
In medieval Europe (outside the Byzantine Empire), the coinage was very complex, as the types were often different from one (small) region to another. In some regions, certain coin types became a commonly accepted coin type in inter-regional trade. For instance, the silver sceattas were a popular type of coin in England, the Netherlands and the Frisian region. The penny was a popular interregional silver coin, thus being known in several different languages as 'penny' (English), 'pfennig' (German) and 'penning' (Scandinavian languages). Medieval coin types frequently suffered from gradual debasement, and the coins were generally small. This changed when the great amounts of silver began to flow into Europe from the New World.
Early Modern period
Ottoman Empire and Persia
While the Byzantine Empire in the Balkans was crumbling, a new power was growing strong in Asia Minor: the Ottoman state. The Ottomans eventually conquered the Byzantine capital in 1453, creating the Ottoman Empire. Early Ottoman silver coins are the small akçes.
With the accession of the Safavid dynasty, Persia emerged as an independent state, also in terms of language and identity. This coincided with a shift from the use of Arabic to Persian in the coins' inscriptions. The coins now tended to employ cursive and interlaced script, radically altering the appearance of the coins.
India
See also Rupee, Indian rupee, History of the rupee and Coinage of India
The earliest coins of India are the so-called
The Sanskrit word rūpyakam (रूप्यकम्) means "wrought silver" or a coin of silver.[2] The term could also be related to "something provided with an image, a coin," from Sanskrit rūpa "shape, likeness, image."
The word
Spanish America, the peso/dollar and Pacific trade
With the Spanish colonization of the Americas after 1492, there were significant finds in both
Europeans started silver mining in the "New World" soon after discovery of the Americas to answer a demand for silver in Europe inspired by the fine craftsmanship of the Renaissance.[4] The discovery of silver in Joachimsthal also gave rise to the silver joachimsthaler coin. Production of silver in the Americas influenced trade and politics in Europe and transformed European relations with other regions of the world, particularly China and the Ottoman Empire. The influx of silver into Europe led to the sometimes uncontrolled minting of coins. All countries of Europe eventually began to issue large size silver coins. Europeans then used these silver coins to purchase goods abroad which eventually led to inflation.[5] The great amounts of new silver supply caused the relative value of silver against gold to drop.
United States
US dimes, quarters, half dollars and dollars were minted in 90% silver until 1964. Produced to save nickel for the war effort, war nickels 1942-1945 are 35% silver (silver nickel production started part way into 1942). Half-dollar coins minted between 1965 and 1970 are 40% silver, but from 1971 on, contain no silver.
After silver was removed from US circulating coins the US Mint made special commemorative coins minted for sale to coin collectors and, starting in 1986, bullion coins primarily sold to investors. Both types, although legal tender, are not expected to circulate for commerce.
Modern silver minting
Bullion coins
Various governments mint, or authorize the minting of, silver bullion coins with a nominal face value in the national currency. The
Silver rounds
Privately minted "silver rounds" or "generic silver rounds" are called "rounds" instead of "coins" because the US Mint and other government mints reserve the use of the word "coin" for government-issued currency with a face value expressed in the national currency. The privately minted "rounds" usually have a set weight of 1 troy ounce (31.103 g) of 99.9% silver, with the dimensions of 2.54 millimetres (1⁄10 in) thick and 39 millimetres (1+9⁄16 in) across. These carry all sorts of designs, from assayer/mine-backed bullion to engravable gifts, automobiles, firearms, armed forces commemorative, and holidays. Unlike silver bullion coins, silver rounds carry no face value and are not considered legal tender. Similarly, both government and private sector mints issue silver bars for investors and collectors without a nominal face value.
Evolution
Silver coins have evolved in many different forms through the ages; a rough timeline for silver coins is as follows:
- Silver coins circulated widely as money in Europe and later the Americas from before the time of Alexander the Great until the 1960s.
- 16th - 19th centuries: World silver crowns, the most famous is arguably the Mexican 8 reales (also known as Spanish dollar), minted in many different parts of the world to facilitate trade. Size is more or less standardized at around 38mm with many minor variations in weight and sizes among different issuing nations. Declining towards the end of the 19th century due to the introduction of secure printing of paper currency. It is no longer convenient to carry sacks of silver coins when they can be deposited in the bank for a certificate of deposit carrying the same value. Smaller denominations exist to complement currency usability by the public.
- 1870s - 1930s: Silver trade dollars, a world standard of its era in weight and purity following the example of the older Mexican 8 Reales to facilitate trade in the Far East. Examples: French Indochina Piastres, British Trade Dollar, US Trade Dollar, Japanese 1 Yen, Chinese 1 Dollar. Smaller denomination exists to complement currency usability by the public.
- 1930s - 1960s: Alloyed in circulating coins of many different governments of the world. This period ended when it was no longer economical for world governments to keep silver as an alloying element in their circulating coins.
- 1960's -1970's: Some circulating coins still used silver in their composition, such as 1965-70 Kennedy half dollar coins, which were debased from 90% silver to 40% silver. However, as silver's metal value continued to increase, resulting in additional hoarding by the public, these coins were eventually debased entirely to cupronickel clad coinage.
- 1960s - current: Modern crown sized commemoratives, using the weight and size of the old world crowns.
- 1980 - current: Modern silver bullion coins, mainly from 39 mm - 42 mm diameter, containing 1 troy ounce (31.103 g) of pure silver in content, regardless of purity. Smaller and bigger sizes exist mainly to complement the collectible set for numismatics market. Some are also purchased as a mean for the masses to buy a standardized store of value, which in this case is silver.
Advantages of silver coinage
Silver coins were among the first coins ever used, thousands of years ago. The silver standard was used for centuries in many places of the world. There were multiple reasons for using silver instead of other materials for coins:
- Silver has market liquidity, is easily tradable.
- Silver is easily transportable. The elements silver and gold have a high value to weight ratio.
- Silver can be divided into small units without losing significant value; precious metals can be coined from bars, and later melted down into bars again.
- A silver coin is fungible: that is, one unit or piece of the same denomination and origin is equivalent to another.
- Most silver coin have a certain standard weight, or measure, making it easy to infer the weight of a number of coins from their number.
- A silver (alloy) coin is durable and long lasting (pure silver is relatively soft and subject to wear) . A silver coin is not subject to decay.
- A silver coin has intrinsic value, although the price of silver bullion coins is subject to market swings and general inflation.[6] Silver has always been a rare metal.
- Because silver is less valuable than gold, it is more practical for small, everyday transactions.
Cultural traditions
A silver coin or coins sometimes are placed under the
See also
- Bullion
- Euro gold and silver commemorative coins
- Inflation hedge
- Millesimal fineness
- Silver
- Silver as an investment
- Silver coins of the German Empire
- Store of value
References
- ^ a b "The origins of coinage". britishmuseum.org. Retrieved 21 September 2015.
- ^ "Etymology of rupee". Online Etymology Dictionary. Retrieved 29 March 2020.
- ^ "Mughal Coinage". RBI Monetary Museum. Archived from the original on 5 October 2002. Retrieved 4 May 2008.
- ^ "Silver". Guide to Gems. Credo Reference. Retrieved 27 February 2013.[permanent dead link]
- ^ "Silver". Encyclopedia of World Trade From Ancient Times to the Present. Credo Reference. Retrieved 27 February 2013.[permanent dead link]
- ^ "Historical Silver Prices in Dollars". Chards coin and bullion dealers. 20 October 2022. Retrieved 20 October 2022.
- ISBN 978-1-4081-3131-2.
- S2CID 161185927.
- ^ "Lucky coin found in medieval ship". BBC News. 6 February 2006. Retrieved 16 March 2009.
- ^ "Boating Encyclopedia:Coin Under Mast". Answers.com. Retrieved 26 February 2010.