IIUC, in early medieval Europe (and likely at other times and places), a fluctuation in metal price occasionally made it profitable to melt down silver or gold coins. This suggests that the premium of coin value over metal value was quite small to begin with (anyone has data on that?).

What could explain such a small premium? I expected the opposite for two reasons:

1. The value of coins as a medium of exchange should be high, since finding counterparties for barter is quite difficult in the days before good transportation and communications.

2. The industrial demand for precious metals should be low in those days (today, gold and silver is used primarily in high tech production).

If I understand correctly, in early medieval Europe (and likely at other times and places), a fluctuation in metal price occasionally made it profitable to melt down silver or gold coins. This suggests that the premium of coin value over metal value was quite small to begin with (anyone has data on that?).

What could explain such a small premium? I expected the opposite for two reasons:

1. The value of coins as a medium of exchange should be high, since finding counterparties for barter is quite difficult in the days before good transportation and communications.

2. The industrial demand for precious metals should be low in those days (today, gold and silver is used primarily in high tech production).