[ELI5] Why are precious metals used in coins/currency when the denominations are so much lower than the price per ounce of said metal?

Question

I’m getting into precious metal stacking. It’s all pretty straightforward, but I can’t wrap my head around the logic in this

In: Technology

Answer 1

There are no real precious metals in coins anymore unless you think nickel is precious. Penny’s are minted at a loss but it looks like that coin is going bye bye.