<Tr> <Td> An unusual copper coin of King George IV of Georgia with Georgian inscriptions, 1210 </Td> </Tr> <P> Most coins presently are made of a base metal, and their value comes from their status as fiat money . This means that the value of the coin is decreed by government fiat (law), and thus is determined by the free market only in as much as national currencies are used in domestic trade and also traded internationally on foreign exchange markets . Thus, these coins are monetary tokens, just as paper currency is: they are usually not backed by metal, but rather by some form of government guarantee . Some have suggested that such coins not be considered to be "true coins" (see below). Thus, there is very little economic difference between notes and coins of equivalent face value . </P> <P> Coins may be in circulation with fiat values lower than the value of their component metals, but they are never initially issued with such value, and the shortfall only arises over time due to inflation, as market values for the metal overtake the fiat declared face value of the coin . Examples are the pre-1965 US dime, quarter, half dollar, and dollar (nominally containing slightly less than a tenth, quarter, half, and full ounce of silver, respectively), US nickel, and pre-1982 US penny . As a result of the increase in the value of copper, the United States greatly reduced the amount of copper in each penny . Since mid-1982, United States pennies are made of 97.5% zinc, with the remaining 2.5% being a coating of copper . Extreme differences between fiat values and metal values of coins cause coins to be hoarded or removed from circulation by illicit smelters in order to realise the value of their metal content . This is an example of Gresham's law . The United States Mint, in an attempt to avoid this, implemented new interim rules on December 14, 2006, subject to public comment for 30 days, which criminalized the melting and export of pennies and nickels . Violators can be fined up to $10,000 and / or imprisoned for up to five years . </P> <P> A coin's value as a collector's item or as an investment generally depends on its condition, specific historical significance, rarity, quality, beauty of the design and general popularity with collectors . If a coin is greatly lacking in all of these, it is unlikely to be worth much . The value of bullion coins is also influenced to some extent by those factors, but is largely based on the value of their gold, silver, or platinum content . Sometimes non-monetized bullion coins such as the Canadian Maple Leaf and the American Gold Eagle are minted with nominal face values less than the value of the metal in them, but as such coins are never intended for circulation, these face values have no relevance . </P>

What term is used to describe the value given to a coin because of its metal content