TNAG-0717-FCO40-914-Banking-and-monetary-matters-in-the-Dependent-Territories-is-1978 — Page 115

- 22

I

consideration when drawing up the specifications. The spate of Jubilee issues resulted in a series of coins with identical specifications representing different denominations

S

25p in Gibraltar, 50p in

Falkland Islands also Rp.25 (£1.88) in Seychelles7. The same specifications were used in 1975 and 1976 for the Tuvalu A$5 (£3.80),

the Botswana P5 (£3.25) and the Malawi K10 (£6.17). With lower denomination coins the bullion value is proportionally greater than with the larger, usually gold, coins, but it would appear that the relative expense of the smaller coins is offset against the much more profitable high denominations.

Legal Tender Status

8.6

In each contract reviewed the coins are specifically required to be legal tender and to remain so throughout the duration of the

contract. This is clear evidence of the importance attached to legal tender status by the numismatic market, at least in the view of the

promotional companies.

Pricing (primary market only)

8.7(1) Numismatic coins are usually available in either proof or specimen quality. Except where the specimen version is produced in a different metal, the specifications are the same for both types, the variation being in the quality of manufacture (see Annex 2). Proof

quality coins are always sold at a premium above face value, although the price will almost invariably include some type of casing. Specimen (uncirculated) coins are sold at, or close to, face value. Specimen

versions are produced not only to meet the substantial demand for a

standard quality, thus cheaper, product, but also to satisfy the numismatic purists who claim that a coin which is not circulating freely and available at face value in the country of origin is a "non-

coin". In most cases involving US companies only a token number of

coins are actually placed into circulation but at least the second

criterion is met. The policy of the Royal Mint in this respect is more purist: proof quality low denomination coins struck in gold or

silver are sometimes supported by base metal versions which are put

into general circulation in large numbers (viz. Jubilee crowns).

8.7(2) The examples of pricing given below illustrate yet another difference of approach between US and UK companies. The premium above face value charged by World Coin and its associates for sales of proof

coins is in the range of 40%-80%; the Royal Mint sets the price at up to fifty times the face value.

(The Mint has, however, pointed out