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Production Limits
8.8(1) A major part of the attraction of numismatic coins to both collectors and investors is the concept of a "limited edition" which guarantees a certain rarity value. While the need for a limit to ensure the success of a programme is emphasised by most promotional companies, the methods of determining the limit vary.
8.8(2)
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The most popular approach adopted by the US companies is the subscription" method, under which the limit is not predetermined, but is settled by demand at a particular time. Coins are offered
(1) to the company's "established collectors", by direct mail
invitation;
(2) to the general public, by advertisements in the Press; and/or
(3) to both sectors.
(The distinction is in fact somewhat artificial because a member of the public may become an "established collector" simply by applying to be put on the mailing list.) Frequently the issuing authority reserves the right to sole distribution within its own territory, and the company is required to remove local residents from the mailing list. The
potential customer is invited to subscribe to the new issue by a specific date (usually within a month or so of the offer date, but the
period can be varied for proof or specimen orders), after which the
offer is closed. An additional restriction is imposed, limiting orders to a specified number of coins per customer, but it is unlikely
that this impedes the determined collector. After the coins have
been struck to meet the demand, the dies are destroyed according to
terms specified in the contract. The subscription method has the
advantage of maximising sales while promoting the idea of a limited
issue, but it leaves the customer with little idea of the actual
"rarity" of his purchase, and is, accordingly, disliked by much of the
numismatic Press.
8.8(3) Even where the subscription method is employed an overall
limit is occasionally introduced as well, and if demand exceeds the
limit distribution is made on a "first come, first served" basis. For the Turks and Caicos 1976 "Victoria" issue the limit was specified
in terms of a given number of each denomination on offer, but, as in
the 1977 Bermuda programme, it may take the form of an overall face
value. If more than one denomination is on offer, production of each
may be adjusted to meet demand, but only within the overall value limit.