Poll

Should the UK issue a circulating 5 pound coin?

Yes, we do need one now
0 (0%)
No, I'm happy with the five pound note
5 (71.4%)
Don't know
2 (28.6%)

Total Members Voted: 7

Author Topic: Should the UK issue a circulating 5 pound coin?  (Read 708 times)

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Offline <k>

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Should the UK issue a circulating 5 pound coin?
« on: April 28, 2017, 07:25:22 PM »




The Isle of Man is supposedly releasing a circulation 5 pound coin in 2017. We will see whether the Manx allow it to circulate, given that they are apparently not keen even on 1 and 2 pound coins. And in the image above, it looks way too large.

What do our members think about the idea of a 5 pound coin for the UK? Personally, I am very happy with the 5 pound note. But what about the other members? If you would like to see a fiver coin, what specifications would you suggest for it, in terms of size, shape, metal and design?
Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.

Offline Alan71

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Re: Should the UK issue a circulating 5 pound coin?
« Reply #1 on: April 28, 2017, 08:47:31 PM »
No!  If you look at all the countries with a lower-value unit, none of them have issued an equivalent.  Euro, Australia, New Zealand, US.  The pound is worth - as a unit - more than any of those (even after the post-referendum decline).  The UK was ahead of all of them in issuing a one currency unit coin (£1), but behind Aus and NZ in terms of the 2 unit.  As ours is one of the highest-value units in the world, we should be one of the last to issue such a coin.

Offline FosseWay

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Re: Should the UK issue a circulating 5 pound coin?
« Reply #2 on: April 28, 2017, 10:26:58 PM »
No!  If you look at all the countries with a lower-value unit, none of them have issued an equivalent.  Euro, Australia, New Zealand, US.  The pound is worth - as a unit - more than any of those (even after the post-referendum decline).  The UK was ahead of all of them in issuing a one currency unit coin (£1), but behind Aus and NZ in terms of the 2 unit.  As ours is one of the highest-value units in the world, we should be one of the last to issue such a coin.

Re the bold bit - no, the US was first. Even if you discount the giant dollar (which has been issued since the 1790s), the purpose of the Susan B. Anthony dollar first issued in 1979 was definitely for circulation. That it didn't get as much public uptake as envisaged is another issue.

Just to throw another obvious heavy currency into the mix - the Swiss have a 5 franc coin. At the moment, the franc is worth much the same as the pound, euro and dollar, though I appreciate that it has risen in value compared to those currencies very quickly.

As to the question in hand - No, I think the £5 note serves the purpose fine at the moment.

Offline Alan71

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Re: Should the UK issue a circulating 5 pound coin?
« Reply #3 on: April 28, 2017, 11:16:07 PM »
Oh yes, I'd forgotten about the US dollar coin.  But they never abandoned the note though. On a US trip once, I went into a bank and asked to swap some notes for coins.  One of the coins wasn't in good enough condition for my collection so I spent it in a shop.  The look of bewilderment when I did so was unbelievable.  She called another assistant over to have a look and verify it was acceptable.  They'd genuinely never seen the dollar coin before.

Offline Alan71

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Re: Should the UK issue a circulating 5 pound coin?
« Reply #4 on: April 29, 2017, 08:27:21 AM »
I did read once that inflation since the issue of the 50p coin in 1969 would mean that it was then worth about £8.50 in today's money.  That being the case, a £5 coin now should be acceptable but isn't.  I'm hoping that the introduction of the polymer notes puts paid to the old excuse that coins are cheaper to produce in the long term than paper.  Polymer notes can't last 30 or 40 years but hopefully they will endure for longer than the paper ones.

Offline FosseWay

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Re: Should the UK issue a circulating 5 pound coin?
« Reply #5 on: April 29, 2017, 09:05:33 AM »
I did read once that inflation since the issue of the 50p coin in 1969 would mean that it was then worth about £8.50 in today's money.  That being the case, a £5 coin now should be acceptable but isn't.  I'm hoping that the introduction of the polymer notes puts paid to the old excuse that coins are cheaper to produce in the long term than paper.  Polymer notes can't last 30 or 40 years but hopefully they will endure for longer than the paper ones.

The 50p was a giant leap, though. Previously the highest-value coin was worth a quarter of that (discounting crowns, which didn't circulate). Because society needs coins to be denominated in round numbers, and not just produced to coincide with the cost of something like stamps are, there are necessarily periods during which the relationship between denominations and inflation deviates. The absolute purchasing power of the highest value coin will sink to below the historical average for a while and will then suddenly jump to well above average when the next denomination is introduced.