metallraha

Metallraha is the term used in Estonian to denote money in the form of metal coins, as opposed to paper banknotes or digital balances. More broadly, metallraha describes coinage—currency units minted from metal and used as a medium of exchange within a state or monetary union. The concept has ancient origins; early metal coins provided standardized, divisible units of value, typically produced from copper, bronze, silver, or gold. In modern economies, coins continue to accompany notes and electronic payments, though production costs and metal prices influence the design and denomination decisions.

Coins are produced by national mints or monetary authorities. The manufacturing process includes alloying, striking or engraving designs, edge finishing, and the inclusion of security and authenticity features such as mint marks, fineness indicators, dates, and sometimes bi-metallic constructions. Denominations are fixed values, even though the intrinsic metal value of a coin can fluctuate with market prices, which can affect decisions about issuing or discontinuing certain coins.

Economically, metallraha involves seigniorage—the difference between a coin’s face value and its production and metal costs. Fluctuating metal prices can prompt policy adjustments, such as reducing coin size, changing the metal composition, or withdrawing low-denomination coins from circulation. In everyday life, metal coins remain part of retail transactions, change-making, collections, and ceremonial uses, with legal tender status defined by national or regional law.

See also: coinage, currency, legal tender.