what term is used to describe the value given to a coin because of its metal content
Coin Coins may be in circulation with fiat values lower than the value of their component metals, but they are never initially issued with such value, and the shortfall only arises over time due to inflation, as market values for the metal overtake the fiat declared face value of the coin. Examples are the pre-1965 US dime, quarter, half dollar, and dollar (nominally containing slightly less than a tenth, quarter, half, and full ounce of silver, respectively), US nickel, and 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, with the remaining 2.5% being a coating of copper. Extreme differences between fiat values and metal values of coins cause coins to be hoarded or removed from circulation by illicit smelters in order to realise the value of their metal content. This is an example of Gresham's law. The United States Mint, in an attempt to avoid this, implemented new interim rules on December 14, 2006, subject to public comment for 30 days, which criminalized the melting and export of pennies and nickels.[30] Violators can be fined up to $10,000 and/or imprisoned for up to five years.
Sovereign (British coin) Named after the English gold sovereign, last minted in 1604, the name was revived with the Great Recoinage of 1816.[2] Minting these new sovereigns began in 1817. By the coin act of 1816, 12 Troy ounces of 22-carat gold were worth 44.5 Guineas (a Guinea being £1.05). This meant that the 1-pound sovereign should weigh 160/623 ounces (~0.257 oz or 7.98 g), whereas its content of pure gold was 22/24 of this (~0.23542 oz or ca. 7.322381 g). This weight has remained almost constant — rounding at 10−6 g took place on its legal redefinition in the decimalised rather than fractional system of coin weights.[3]