If a coin is minted the material might cost less or more then the monetary value on it how are the governments assigning values to it?

Question

If a coin is minted the material might cost less or more then the monetary value on it how are the governments assigning values to it?

In: Economics

Answer 1

Junk metal coins are fiat “money”. The transaction value is solely based on the number printed on it.

For example, pennies minted prior to 1982 are mostly copper, if melted, the copper value is about two cents. Pennies minted after 1982 are mostly zinc, their melt value is less than a penny.

In the next 30 days the Federal Reserve will inflate the US currency supply by $500 Billion dollars, in a desperate attempt to prevent a world-wide collapse of fiat currencies. Good luck, everyone!