The History of Coins: Their Origins, the Reeded Edge and the Troy Ounce
Coins have accompanied humanity for more than 2,600 years, and in that time several details have become established that we now take for granted – the round shape, the exact weight and the reeded edge. In this article we look at where the very first coins came from, why they gained a reeded edge and why precious metals are still weighed in troy ounces today.
Where the very first coins were made
The world’s first coins were struck in the 7th century BC in the Anatolian kingdom of Lydia (in today’s Turkey). They were made of electrum – a natural alloy of gold and silver found in the river Pactolus. Around the middle of the 6th century BC, the Lydian king Croesus, famous for his wealth, had the first pure gold and silver coins struck with guaranteed weight and fineness – the so-called croeseids, considered the first truly standardised currency in history.
From Lydia to Rome: how coinage spread
The idea of a standardised coin quickly spread to the Greek city-states, which added their own motifs and symbols (such as the Athenian tetradrachm with its owl). Rome developed the system further – the silver denarius and later the gold aureus became a currency that, thanks to the size of the empire, reached practically the whole known world. In medieval Europe, trading centres such as the French town of Troyes needed a common system of weights for precious metals – which is where the troy ounce, still used today, comes from.
Why coins have a reeded edge
The reeded edge is not decoration but the solution to a specific problem. As long as coins were struck by hand with a hammer, they had smooth edges – and people could discreetly cut or file thin slivers of precious metal off them, keep the metal and go on using the clipped coin at full face value. This fraud is called “clipping”, and in 17th-century England it was so widespread that it seriously threatened confidence in the currency.
The Great Recoinage of 1696 and Isaac Newton
The solution was machine striking (the screw press), which, unlike hand striking, could produce a precisely reeded or lettered edge. Any attempt to cut metal from the edge was then immediately visible. In England, machine striking with reeded edges was fully adopted during the Great Recoinage of 1696, overseen by Isaac Newton as Warden of the Royal Mint – the old, hand-struck and easily clipped silver coins were withdrawn from circulation and replaced with new machine-struck pieces. More about one of the oldest mints in the world is in the article The story of The Royal Mint.
Why today’s bullion coins still have a reeded edge
Today’s bullion coins no longer need to fear clipping – their weight and fineness are guaranteed by the mint, and they are traded only as whole, intact pieces. The reeded edge has nevertheless survived as a traditional design element and as a simple safeguard, recognisable by eye and touch, against fakes made of cheaper metals. Modern bullion coins add further security features – how they work is described in the article Britannia coin security features. Fast and reliable authenticity checks are also possible today with devices such as the Sigma Metalytics PMV PRO.
Why precious metals are still weighed in troy ounces
Like the reeded edge, the troy ounce is a legacy of medieval trade – the unit comes from Troyes in France and has survived as the international standard for precious metals, even though gold and silver bars in Europe are usually made in grams. Why bullion coins are struck in ounces and how to convert ounces to grams is explained in detail in the article Why gold is weighed in ounces.
Bullion coins at GOLDU
You will find the reeded edge and the exact weight in troy ounces on the investment gold and investment silver offered by GOLDU – for example on the Wiener Philharmoniker 1 oz, the British Britannia 1/2 oz or the Australian Australian Kangaroo 1/2 oz.
Frequently asked questions
Where and when were the very first coins made?
In the 7th century BC in Lydia (today’s Turkey), initially of electrum, later – under King Croesus – of pure gold and silver with guaranteed weight.
Why do coins have a reeded edge?
Historically, so that it was easy to see whether someone had cut or filed a piece of precious metal off the edge. On today’s bullion coins it is mainly traditional design and a simple security feature.
Why are gold and silver weighed in troy ounces rather than grams?
It is a long-established international standard originating in the medieval trading centre of Troyes. The article Why gold is weighed in ounces explains it in detail.
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About the author
Adolf Baumann, analyst at Baumann Group a.s. (GOLDU), has been working with precious metals for over 30 years. He has seen euphoria, crashes and panic on the markets – and he still enjoys it. He explains in plain language what moves the price of gold and silver and how to handle them without unnecessary mistakes. His weakness? He refuses to wear a suit.
