What does Composition of a coin mean

The composition of a coin means what material was used in physically creating the coin. Though a coin could be made of many materials, most world coins are made of various different types of metal. Coppper, zinc, and steel are very common examples of metal used to mint (or produce) coins. Therefore, when one says the composition of a coin, one most likely is referencing the metal composition of a coin, or what metals were used to make the coin. For example, the Lincoln copper penny has a metal composition of 95% copper and 5% zinc. The Wheat cent copper penny is 95% copper with near 5% of zinc and a very minute amount of tin mixed in. The newer Lincoln penny known as a zinc cent is 97.5% zinc and 2.5% copper. These are just examples of metal mixtures that are used to create coins or have been used in the past.

Why Change Coin Compositions

When coins are made, the three practical stages to their manufacturing are: Production (cost), distribution (value), and use (societal functionality). The production of any given coin is simply the actual cost to manufacture or create the coin. Distribution is not so much the cost in transporting the coin to the open market, but rather the value in which buyers on the open market are willing to pay for the coin. After all, it costs money to buy coins. When you go the bank for a $10 roll of quarters, it generally costs $10. But to buy newly minted coins, it may cost more than the face value of the coin. Use is simply the willingness of the coin buyers to have a use for the coin, whether selling numismatically (the coin collecting value) or currency (trading the coin for goods or services as a form of money).

Penny Production

devaluing of the dollar making the penny face value having little value in use in society (the third and most important stage). Therefore, a zinc penny is a bad business decision.

To the general public, the metal composition of a coin may not be the first thing in a person’s mind. Then again, if you were holding onto a one ounce gold coin worth thousands of dollars, you might think before spending it for its face value. A silver dollar coin is worth about $30 in metal silver value. Would you spend it as its face value for $1? Probably not. This is the mentality needed to think outside the box about copper pennies. After all, why would you choose the lesser value of an object when you can get the greater value?

Metal compositions do matter. And not just with pennies. For example, the next time you’re holding a U.S. quarter or dime in your hand, look at the date. If it’s 1964 or older, it’s made of silver, and worth quite a bit compared to its face value. Sure, it might not happen the first time, or even the eight. But eventually, if you find one, it’ll be a great find. And that’s a metal composition win you can smile about.