ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Are gold coins solid gold? Yes, but to make gold coins more durable, they are often alloyed with other metals. Typically, the other 8.33% of 22ct gold coins will be made up of more durable metals like silver, copper, zinc, or nickel.

Detailed explanation-2: -A ‘copper’ coin is dipped into a solution of sodium zincate in contact with zinc. The coin is plated with zinc and appears silver in colour. The plated coin is held in a Bunsen flame for a few seconds and the zinc and copper form an alloy of brass. The coin now appears gold.

Detailed explanation-3: -Historically, most coinage metals (or alloys) are from the three nonradioactive members of group 11 of the periodic table: copper, silver and gold, the copper usually being augmented with tin and often other metals to form bronze.

Detailed explanation-4: -Gold as Money Gold does not dissipate into the atmosphere, it does not burst into flames, and it does not poison or irradiate the holder. It is rare enough to make it difficult to overproduce and malleable to mint into coins, bars, and bricks. Civilizations have consistently used gold as a material of value.

Detailed explanation-5: -Gold coins are made of gold. However, beyond this, we need to look at the actual purity of the metal. Gold is a relatively soft metal and can easily be scratched and lose precious micrograms of gold through wear and tear. Typically gold bullion is made of 24-carat gold, whilst coins are often made from 22ct gold.