Money in your pocket

[Joonya]

I very rarely read up on the stuff that flashes in front of me before logging into my e-mail inbox.

However, one article took my fancy and it's actually quite interesting...

It descibed how much the coins in our pocket are worth.

From MSN Homepage...

1p - When they were first brought into circulation in 1971, 1p coins were made of 97% copper. Using today's metal prices, it meant each coin would cost 1.6p, or 60% more, to produce than it was worth.

However, in 1992 the government decided to produce a lower cost alternative, meaning all 1p coins made after this date are worth just 0.18p*.

According to the Royal Mint, the new coins have a "mild steel core and are electroplated with copper - consequently they are magnetic."

*using steel price estimate of $770 a tonne

2p - If you have a 2p coin in your pocket that was minted between 1971 and 1992, it's actually worth 3.3p in terms of the raw materials required to make it.

As with the 1p coin, the government responded by introducing a low cost copper-plated metal version in 1992, which is worth a piffling 0.36p*.

And did you know that the 2p coin is legal tender up to just 20p? In other words, you can be refused if you try to spend more than 20p's worth of 2p coins at one time.

*using steel price estimate of $770 a tonne

5p - In 1971, the pre-decimal one shilling coin was re-denominated as a 5p coin. The old shilling coins remained in circulation alongside the 5p until 1990.

The 5p coin wasn't always this size: a smaller version was introduced in 1987 following a UK coinage review.

Each 5p coin, which is made from 75% copper and 25% nickel, costs 2.56p to make.

10p - The current 10p coin was first issued on 30 September 1992 and is worth 5.13p in raw materials.

According to the Royal Mint, there were an estimated 1.58 billion 10p coins in circulation as at 31 December 2005 - that's roughly 26 coins for every person in the UK.

20p - To help avoid confusion with similar-sized coins, it was decided the 20p would be shaped like a heptagon (that's seven-sided to you and me).

Comprised of 84% copper and 16% nickel, the 20p coin costs 3.39p to produce.

50p - The 50p coin was first introduced back in October 1969, with a slightly less weighty version brought out in 1997.

The current coin is 75% copper and 25% nickel, costing 6.32p to make.

Interestingly, the 50p is only considered legal tender for amounts up to ?10.

?1 - Introduced in 1983, the ?1 coin is 70% copper, 5.5% nickel, and 24.5% zinc.

While it may feel valuable due to its weight, the amount of raw materials used to make the coin is only worth 4.5p - less than both the 10p and 50p. So a dedicated forger who reproduced pound coins in exactly the same proportions as the Royal Mint version could make a sizeable mark-up.

?2 - The idea of a ?2 coin was first discussed back in 1994, but it was 1998 before the coin finally made its way into general circulation.

The outer part is a combination of copper, nickel, and zinc, while the inner circle is just copper and nickel.

Unsurprisingly, it is the most expensive coin to make, at 7.58p. Both ?1 and ?2 coins are legal tender for any amount.

[Charles Bannerman]

However, in 1992 the government decided to produce a lower cost alternative, meaning all 1p coins made after this date are worth just 0.18p*.

As with the 1p coin, the government responded by introducing a low cost copper-plated metal version in 1992, which is worth a piffling 0.36p*.

1992? That's strange because many years ago when I used to put "copper" coins into concentrated nitric acid for O Grade classes, I discovered at one point that some coins were not all copper but rather a grey metal beneath a thin copper layer. These coins were also magnetic so the grey metal was very likely iron.

Trying a few coins like this suggested that the pure copper ones were pre 1984, at which point copper coated iron appeared to be introduced.

[CaleyD]

No wonder kids today have no appreciation for the value of money when they have teachers destroying it in class. Not to mention the fact that it's actually illegal to destroy a coin....although the legality issue has been a bit hazy since 1981.

[VIVA LAS TOKLEY]

However, in 1992 the government decided to produce a lower cost alternative, meaning all 1p coins made after this date are worth just 0.18p*.

As with the 1p coin, the government responded by introducing a low cost copper-plated metal version in 1992, which is worth a piffling 0.36p*.

1992? That's strange because many years ago when I used to put "copper" coins into concentrated nitric acid for O Grade classes, I discovered at one point that some coins were not all copper but rather a grey metal beneath a thin copper layer. These coins were also magnetic so the grey metal was very likely iron.

Trying a few coins like this suggested that the pure copper ones were pre 1984, at which point copper coated iron appeared to be introduced.

You could afford to destroy money! You must be minted! :D

[Charles Bannerman]

No wonder kids today have no appreciation for the value of money when they have teachers destroying it in class. Not to mention the fact that it's actually illegal to destroy a coin....although the legality issue has been a bit hazy since 1981.

[Alex MacLeod]

How many penny chews could a one penny coin buy I wonder.