Intrinsic value (numismatics)

From Wikipedia, the free encyclopedia

Jump to: navigation, search

Intrinsic value in general, is the argument that the value of a product is intrinsic within the product rather than dependent on the buyer's perception.

In commodity money, intrinsic value can be partially or entirely due to the desirable features of the object as a medium of exchange and a store of value. Examples of such features include being divisible, easily and securely storable and transportable, scarce, and hard to counterfeit. When objects come to be used as a medium of exchange they lower the high transaction costs associated with barter and other in-kind transactions.

In numismatics, intrinsic value is the value of the metal, typically a precious metal, in a coin. For example, if gold trades at a price of USD 450 per fine troy ounce ($14/g), a coin minted from one troy ounce of fine gold would have an intrinsic value of USD 450. When the intrinsic value becomes greater than the face value, the coins are in danger of being removed from circulation in large numbers (an expression of Gresham's law). When the coin is in use as money this effect can, at the margin, mitigate forces that might otherwise cause inflation. When copper prices skyrocketed in the mid-to-late 1970s, there was a fear that the U.S. one-cent piece might succumb to this fate. In fact, this did happen, leading the Mint to change the composition of the cent in 1982.

Intrinsic Value The market value of the constituent metal within a coin.
Legal or Face Value The legally defined value of the coin relative to other units of currency. eg a dime has a face value of 0.10 dollars.
Market Value The price that the coin will fetch in the market place. For most coins in circulation this value is coincident with the face value.


Retrieved from "http://en.wikipedia.org/wiki/Intrinsic_value_%28numismatics%29"
Advanced Search
Included Web Search Engines


Safe Search

close

Top Matching Results

Occasionally Search.com will highlight specialized results that are based on the context of your query. Examples of specialized results include specific links to news, images, or video.

Top Matching Results may highlight information from other Search.com pages, content from the CNET Network of sites, or third party content. The listings are based purely on relevance. Search.com does not receive payment for listings in this section but our partners that provide this data may get paid for listing these products.

Sponsored Links

This section contains paid listings which have been purchased by companies that want to have their sites appear for specific search terms and related content. These listings are administered, sorted and maintained by a third party and are not endorsed by Search.com.

Search Results

Search.com sends your search query to several search engines at one time and integrates the results into one list which has been sorted by relevance using Search.com's proprietary algorithm. You can customize the list of search engines included in your metasearch from the preferences.

The search engines that are used in your metasearch may allow companies to pay to have their Web sites included within the results. To view the Paid Inclusion policy for a specific search engine, please visit their Web site. Search.com does not accept payment or share revenue with any search engine partner for listings in this section.