The Royal Mint from the UK has announced that its 5 pence and 10 pence coins shall henceforth be made from steel. The coins will be coated by nickel. The first minting of steel based coins shall take place in January of next year.

Why does the Royal Mint ‘debase’ the value of these coins? It is said to be a measure to help reducing the deficit of the UK government. Currently the coins are made of non-ferrous nickel/copper alloys. Copper trades at US$ 7,500.00 per metric ton on the London Metal Exchange and nickel has hit US$ 22,000.00 recently. Steel trades at some US$ 720 for hot rolled material at this moment. A sizeable reduction of material cost thus even when taking the price of the nickel coating into account. Of course the Royal Mint does not share what grade of steel is to be used and where it does come from.

It seems to me as if the UK government is in the deepest of financial troubles if they have to take flight to debasing the material worth of low-value coins in their attempt to make ends meet.

I wonder what that all means to the value of vintage watch cases made out of brass ……..