Examples
Silver coins were widely circulated in Canada (until 1968) and in the United States (until 1964 for dimes and quarters and 1969 for half-dollars). However, these countries debased their coins by switching to cheaper metals as the market value of silver rose above that of the face value. The silver coins disappeared from circulation as citizens retained them to capture the higher current or perceived future intrinsic value of the metal content over their face value, using the newer coins in daily transactions. In the late 1970s, the Hunt brothers attempted to corner the worldwide silver market but failed, temporarily driving the price far above its historic levels and intensifying the extraction of silver coins from circulation. The same process occurs today with the copper content of coins such as the pre-1997 Canadian penny, the pre-1982 United States penny and the pre-1992 UK copper pennies and two pence. This also occurred even with coins made of less expensive metals such as steel in India.
Read more about this topic: Gresham's Law
Famous quotes containing the word examples:
“There are many examples of women that have excelled in learning, and even in war, but this is no reason we should bring ‘em all up to Latin and Greek or else military discipline, instead of needle-work and housewifry.”
—Bernard Mandeville (1670–1733)
“It is hardly to be believed how spiritual reflections when mixed with a little physics can hold people’s attention and give them a livelier idea of God than do the often ill-applied examples of his wrath.”
—G.C. (Georg Christoph)
“Histories are more full of examples of the fidelity of dogs than of friends.”
—Alexander Pope (1688–1744)