Circulation of Gold Coins?

My understanding is that gold coins circulated much more in the West than in the East, which is why most metal detected gold coins are found out West. In the early 20th century, most of the gold minted was for the West, as Westerners still distrusted paper money. This prejudice disappeared after WW1, and the quantity of gold minted fell, also because by law less was required to back up gold certificates, and enough was already in circulation for that purpose. Most gold coins were used as reserves by banks, in foreign trade, and also were either hoarded or melted, depending on the value of the gold vs. the value of the coin. One notable exception was military pay, which was often in gold coin. An entire lost payroll of about $23k from the 2nd Seminole War, was discovered about 100 feet off the Ft. Pierce, Fl beach in 6' of water in the 1960's by two boys snorkeling for lobsters. Most of it was in gold coin , though there were also some silver coins. Their fathers recovered almost all of it, hid most of it from the state of Fl, but then they sued each other, and thereby lost all of it to the state for having avoided the 25% state treasure tax. The boys however, received some valuable pieces from the state treasure hoard as a measure of recompense, and a recognition of their innocence in the tax avoidance case. Most US gold coins in collections today, not counting modern bullion or collectibles, are from foreign sources. That's all my understanding, anyway.

 

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How about a current picture, 6 years later?

 

I remember silver half dollars in circulation when I was a boy in the 50's and 60's. Over the last 3 years I have metal detected about 115 silver coins in south florida, and 5 of them are half dollar pieces: 3 walking liberties, and 2 franklins. Considering that a half dollar is far less likely to fall out of a hole in a pocket, and a person is much more likely to be aware of a half dollar falling out of his pocket than a dime, and that half dollars were much more likely to be seen and picked up at the time before they became buried, this indicates to me that silver half dollars must have been pretty common in circulation in South Florida, particularly after WW2 until the late 60's, thanks to economic prosperity. I have not found a single dollar coin metal detecting, however. I can recall as a boy seeing a dollar coin, but I am sure they were too large and bulky to be popular, and it was probably fairly hard to drop one without noticing.

 

So, I guess it is well worn now.



Yes, I knew it was in '08, hence the 6 year reference.

 

In Britain gold coins stopped circulating in late 1914 when they were replaced by the first 1 pound and 10 shilling notes. Before that a gentleman would probably carry a sovereign or two and a couple of halves, or there would not be so many sovereign holders in silver and base metal still around. Obviously people earning less than ten shillings a week would have little need of them. The 5/- piece or crown did see considerable circulation, well worn (dollar size) coins are quite common, and would still be in circulation up to the early 1920s.

With no smaller banknotes in circulation from the Bank of England than the £5 note, a sovereign or half sov. was in fact, change.
By the 1920s you'd not see a gold coin in circulation because you could get 30/- for one from a jeweller.

The sovereign was the equivalent of $5, the double sovereign and five pound coins were not circulated to any extent and were mostly minted in token numbers.

In the 1660s and 70s, in his Diary, Samuel Pepys often refers to his small expenditures, gold 'a piece' is little used except for the receipt and payment of fees and what were more or less bribes. By the time of the Great Fire, he was holding about £900 in gold and silver coin, and was paying a silver premium to put as much of his money as possible into gold. Some was in the hands of goldsmiths, the bankers of the day, a fair amount was in a chest in the cellar.

His daily expenses would amount to a few shillings and he was by the standards of the time a fairly wealthy man earning several hundred pounds a year when a servant maid cost about £4 a year plus board and lodging.
Items that might be paid in gold and were sometimes mentioned as such were books at up to 2 or 3 guineas each, pictures and prints.

A day might include a morning draught of beer or wine, 6d, being rowed to Westminster Hall for meetings, 6d, lunch, a shilling or two (pretty lavish and often shared with cronies) an evening meal, similar, and a visit to a play could cost from 6d or 9d, to half a crown, but with the best seats you would be sitting near the King, in the cheaper pit there were chances to mingle with a more varied society.
A cab or a link-boy home would be another few pennies.

A pretty lavish day could cost about 5 shillings, little need to carry any gold.

Pepys's diary has a fair amount of interest for a coin collector, including visits to the Royal Mint to see the new milled coinage, the recall of the Commonwealth coinage and estimates of the amount of money in circulation, and innumerable accounts of expenses great and small to give a sense of the money of the time and its buying power..