TNAG-0717-FCO40-914-Banking-and-monetary-matters-in-the-Dependent-Territories-is-1978 — Page 117

24

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) 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;

(3) to both sectors.

and/or

(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.