Why Are Canadian Gold and Silver Coins Not in Circulation?

Canada's authority fixed a monetary system around the 1850s, when they issued a dollar similar to the US, which was of equal value to 100 cents. They initially created five, ten and twenty-cent values, with the fifty appearing at 1870. All the other coins were also updated with different designs by 1870. These coins have always represented portraits of the crowned English monarchy, with designs for Queen Victoria and King Edward VII in 1901. George V died and abdicated the throne before any other coins could be created, and therefore there are none circulating today.

Canadian coinage has always been termed as the nickel, dime and quarter. The one cent piece, which is commonly known as the penny, was discontinued last 2012 due to inflation decreasing its overall value. Gold coins were only circulated between the dates of 1912 to 1914, after which they stopped producing due to the First World War. Afterwards, they sold the rest either as collective memorabilia or as melted gold pieces.

There are several factors as to why gold and silver coins are no longer in circulation today. First would be the fact that the cost to produce and stamp these coins cost a lot higher than the actual cost of the coin. Silver and Gold coins are naturally more valuable than aluminium or copper, so it would cost the country more to collect and create. Even stamping them also uses a lot of money, since getting the right artist and a universally accepted design is difficult.

Second, these metals may get more expensive due to inflation, deflation and changes in the economy. Some coins may lose their value so much that they are already virtually unneeded in the economy. Even a huge amount of those coins may only amount to a small bill, which is why it is smarter for them to issue bills which, even when they lose their value, will still not cost as much to create or retract.

Thirdly, people tend to hoard these coins for melting or selling instead of spending them as intended, which means that less will be circulated and there will be a need for more to be produced. It is simply more expensive to create something that is not getting used.

In 2012, all coin values have been changed to steel, with nickel or copper plating. They still mint these coins with regularity, but gold and silver coins are no longer used in today's Canadian currency. Canada is also getting used to the concept of using paper and plastic money instead of coins, since they cost less and are friendlier to the environment. These types of money also use up much less space than coins to carry around.

Lastly, most people nowadays prefer to use bank cards. It is more convenient to shop with the use of one card instead of carrying several coins or bills in your purse. While coins and bills are easy for others to steal, banks have security methods used to prevent and protect your funds. It is also easier for someone to go out and enjoy shopping with one card instead of repeatedly going through several bills in their bag.

Gold and Silver coins are a relic of the age when the world didn't have technologies that made billing and shopping more convenient for people. The current Canadian currency still uses coins, but now with steel instead of silver or gold. They also use various kinds of bills, some of which use different portraits of Queen Elizabeth II. The history and challenge to finding the perfect coin is what makes coin collecting so appealing to people.