Quote: "RTScott78"I've always wondered this about these tiny coins we're discussing here, why in the world would countries issue such small coins that could easily be lost?
I do understand that for silver, gold and even copper coins, they were made to have the specific denominations worth of metal in it, but, for example, the 1949 Polish Grosz I posted a link to confuses me. Was a half of a gram of aluminum actually worth one Grosz in 1949?
I guess what I'm trying to ask is, why not just make them larger if the metals you're using for the coins don't correspond to the actual face value?
Forgive me if its sort of a dumb question.
Historically, because at some point the coins become too large instead.
There was a huge disparity between the worth of silver and copper; the
cartwheel penny of 1797 was infamously huge, but
its silver contemporary was tiny (12 mm), and from a modern perspective, it's not certain which is better.
Similarly, the US large cent was specifically modified to only contain less than half of a cent's worth of copper; a full cent version would have been, again, unreasonably large. (A version with a bit of added silver for correct melt value was considered and decided to be too complicated.) But even then it was still far too small a denomination to be made directly out of silver.
Meanwhile, and more recently, the prices of all the other metals fluctuated too much; I don't know how much aluminium would actually be worth one grosz in 1949, but however much it was (likely too much for a usable coin, but for the sake of argument), it was liable to be worth two groszes a month or a year later, which would mean that a lot of people would have melted down their coins for scrap metal.
(This almost happened to American 5 cent coins, when a rise in nickel prices made them worth nearly 7 cents in melt value; fortunately for collectors, there were laws that prevented such melting. Nickel prices have gone down since, so those coins are only worth about 4 cents in melt value today.
This did happen to Bulgarian 1 and 2 leva coins from 1923, though the reason was apparently less about the metal value and more about the low availability of aluminium to the common people at all; those coins are very uncommon today.)
And most recently - and really for most of the last century (and at occasional times even earlier) - the answer was fiat money; coins, in general, were not supposed to be worth however much metal they contained, but however much they, and the respective government, said they were worth (much like how banknotes have always worked).
In this case, the size of the coin is not important at all, except that it should normally fall within reasonable boundaries (much narrower ones than historically); many modern fiat coins inherited their size from earlier versions with significant metal value, many others were pretty much chosen for convenience.
Within that setting, the low weight of a typical aluminium coin is the function of its low face value (which correlated with smaller size, for obvious reasons) and low density (as expected of aluminium). The Polish grosz weighs half a gram because that's how much a 15 mm aluminium coin would normally weigh; and it's 15 mm because it's the lowest denomination, so it must be small (and/or because the Soviet 1 kopek, whose size was chosen for a weight of 1 gram, is also 15 mm).