Q: Should I buy "Non-Circulating" coins???

[Topcat7]

Some countries produce "Non-Circulation" coins at the same time as producing coins for circulation. (See below)

I am presuming that those "Non-Circulating" coins are put into 'Collector Sets' and the like, which may (or may not be) broken up after purchase.

Should I buy some "Non-Circulating" coins to add to my collection of coins of that Country, or are they considered 'not worth it'???

Edited August 21 by Topcat7

[John Conduitt]

It depends on you and what you're collecting. They are not 'coins' in the sense of being produced to spend. They are produced to collect.

[shanxi]

You can buy what you like. However, it's more like buying a medal. 

 

Some points:

 

There are official non-circulating coins from reasonable mints such as the French mint. These are more collectable. Here you can expect the material value + a surcharge X. 

 

But there are also non-circulating coins from countries that only give their names. These are at often bought by collectors who like certain motifs, but often you can find nicer depictions on medals than on these modern coins.

 

You have to be careful with the price. The last coins in particular are often sold far above their material value, often with the promise of large price increases. In reality, you often only get the material value.

 

In this respect, it is not a bad idea to buy such coins on the secondary market if you like them.

 

Edited August 21 by shanxi

[Topcat7]

Thank you, @John Conduitt and @shanxi for your comments.

Just what I wanted to hear.

I was offered some , hebce the question, but I will save my money for 'real' coins.

[hotwheelsearl]

What’s the difference between this and the “NIFC” American coins that people go nuts over?

I suppose it’s more realistic to spend a Kennedy or dollar coin than trying to spend a special French coin or whatever 

[John Conduitt]

22 minutes ago, hotwheelsearl said:

What’s the difference between this and the “NIFC” American coins that people go nuts over?

I suppose it’s more realistic to spend a Kennedy or dollar coin than trying to spend a special French coin or whatever 

Presumably they are the same. Often, they produce 'circulating commemorative' and 'non-circulating' coins that are exactly the same, except the 'non-circulating' version is proof, silver or gold. You wouldn't spend one in a shop if you knew what it was but it's possible.

[Hrefn]

Production of non-circulating coins is a very old tradition.  The USA produced commemorative coinage, mostly half dollars but also some gold coins, for (roughly) much of the first half of the twentieth century.  These coins were usually sold at prices above face value in order to raise money for various causes.  One of the first produced was the Columbus half dollar struck in 1892 to commemorate the anniversary of the discovery of America.  So many of these were made that they lost any premium over face value, and some entered circulation.  The majority of commemorative coin types continued to command a premium over face value, and they are very avidly collected today.  

Earlier than this, various pieforts and presentation pieces have a long history.  Certainly these were the non-circulating legal tender (NCLT) of their time.  Most of these are coveted collector’s items. 

The past 60 years have witnessed an explosion in the production of coins aimed at the collector market.  Sovereign governments, and private mints which could secure some legal authority from a government, have supersaturated the numismatic marketplace with a tsunami of NCLT coins.  The quality ranges from exquisite to shoddy.  The historical importance of many is minimal, and the relevance of the commemorated subject to the issuing authority can be slim to absent.   The law of supply and demand would suggest the price of these coins, in general, will disappoint collectors who are also investors.   

But, there will be exceptions!  Some of these coins, considered individually, are scarce.  If they are also historically important, have a beautiful design, and are issued by a recognized nation which already has a community which collects its coins, there is a chance some individual emissions will do well.   If you can buy such coins close to their bullion value, the downside risk is very small.  
 

Here are some modern NCLT’s that I believe are worth keeping. for their general appeal, design, historical import, and limited mintage.    
   

Except for the last coin, which is handsome, but too many were struck relative to the size of the collector market, in my opinion.  I just do not think it has much potential to appreciate beyond its bullion value.   So I traded it for another coin I preferred more.   

 

 

 

 

Edited August 22 by Hrefn
Mintage, not montage. Eek!

[Al Kowsky]

In the 1980s the American version of these coins were called NCLT (non circulating legal tender). In other word you could actually spend them for the designated value stamped on the coin, however, these coins always cost more than their stated value. The 1900 Lafayette commemorative $1 coins originally sold for two dollars (now don't you wish your great grandfather bought a few of them to stash away 🤔). Today an MS65 Lafayette dollar would sell for over $5,000 😮! I bought a number of modern commemorative $5 & $10 gold coins when they were issued & didn't regret it, see posted coins below.

 

 

Edited August 22 by Al Kowsky
added info

[Bonshaw]

@Topcat7 Your question of whether non-circulating coins are "not worth it?" begs another question: why are you buying coins at all? Investment, pleasure, curiosity?

A great reason to buy any coin, if you aren't trying to make money (and are willing to lose a little) is curiosity. If you keep your purchases to coins that are selling for close to bullion value, you aren't going to lose much when you sell them again, except through the fluctuation in the value of the underlying bullion. And one can make the case that some financial exposure to precious metals is a healthy thing for a portfolio.

So what are you curious about?

I am curious, amongst other things, about metallurgy and the history of coin manufacturing. Here is my favorite NCLT. I'm not suggesting that anyone buy one, unless they are similarly curious. I didn't buy it to make money, but I happen to have while gold prices have gone through the roof. 

 

I am personally quite curious about metallurgical and numismatic "firsts." The first electrum coins in ca. 600 BC. The first gold and silver coins. The first coins that were truly legal tender. The first coins made out of other metals, like aluminum or niobium.

This coin was struck for the 90th anniversary of the Royal Canadian Mint. It is *not* actually part of the provincial flower series, I don't believe, despite how NGC labeled it. These aren't provincial flowers. But it did inspire the provincial flowers series that started the next year. Rather, the RCM showed off for their anniversary by striking the first coin *ever* manufactured to 99.999% purity, of any material. At the time, this was a tour de force. Now some other coins have come along made of 99.999% gold, but this, in 1998, was the first. I think that is super cool. I also think it is a very attractive coin. The reverse has the four flowers of the Canadian coat of arms, representing the four founding European nationalities of Canada: the English Rose, The Lily/Lys of France, the Shamrock of Ireland, and the Thistle of Scotland. No first peoples; if the coat of arms was established today, I would expect them to be recognized.

I think that 1,999 of these were minted, so they aren't *that* rare. NGC indicates that 14 are at PF69, and only 1 at PF70. I find the odd denomination interesting too: $350 Canadian. 

This coin makes me happy. That is a great reason to buy a NCLT. It is hard to make anything 99.999% pure, let alone a coin. And the weight: 1.22 Troy ounces of gold. What an oddball coin.

My second favorite NCLT is made of Tantalum. Perhaps I'll post it at some point.

Edited August 22 by Bonshaw

[expat]

I always look at the gold issues as novel ways to invest in gold. A bit more interesting than looking at ingots. Here is an example of a non circulating, International year of the child.

 

 

[lordmarcovan]

My stance on NCLT coins is: if I like it, I buy it.  While they’re often unlikely to be a great investment (except maybe when there’s precious metal bullion involved), they CAN be aesthetically pleasing.  

Some countries also issue NCLT with interesting gimmicks.  For example, one that resembles a Coca-Cola bottlecap, or is colorized, or oddly shaped, or with a superhero on it, whatever.  A lot of these “gimmick” coins are supremely tacky, but there have been a few I thought were cool.

It’s mostly a matter of personal preference.  

For example, the coin that currently represents China in my collection is an NCLT issue with gilt enamel peaches on it… and bats!  Seems a strange combination, but I believe that has something to do with longevity, which was the theme for this issue.  I thought it was handsome, and not too tacky.  So I bought it.  🙂

 

Edited August 23 by lordmarcovan

[lordmarcovan]

Re. the gold posted by @Bonshaw and @expat - I must agree.  NCLT gold is a fun way to hold some of the precious metal, and is often more appealing than straight bullion coins.  Especially when the NCLT are proofs.

i have a half-ounce Canadian $100 like @expat posted, though I went with the 1977 rather than the 1979.  You see, right after I started collecting as a young lad in 1976, the 1977 Queen’s Silver Jubilee $100 pieces were advertised in Coins magazine.  Still in middle school at the time, I had no prayer of ever owning one, but I was tantalized by the lovely bouquet on the reverse.  So decades later, I finally added one to my collection.

The “Bermuda Triangle” $60 piece is also fun, and contains slightly more than an ounce of gold.

The 2020 British Mayflower piece was a worthy addition for me, as I am a Mayflower descendant.  It is a one-ounce coin.  I find it interesting that the Brits struck a commemorative coin for the 400th anniversary of the Mayflower voyage, while the United States apparently didn’t!  (Basketball Hall of Fame, but not the Mayflower?  Really?)

Edited August 23 by lordmarcovan

[lordmarcovan]

On 8/21/2024 at 10:17 PM, Al Kowsky said:

The 1900 Lafayette commemorative $1 coins originally sold for two dollars (now don't you wish your great grandfather bought a few of them to stash away 🤔). Today an MS65 Lafayette dollar would sell for over $5,000 😮!
 

I’ve got a pretty nice Lafayette dollar.  It’s not an MS65, but a pretty respectable MS63.  According to the PCGS priceguide, it’s an $1,850 coin in that grade.  I happily paid $1,275 for it.

[Bonshaw]

I realize that I have another non-circulating coin that I should post here. I love this little thing; a non-circulating coin minted by Turkey in 1997. It has an explicit tie back to what is perhaps the earliest ''official, legal tender" coin ever made, the Lydia lion. The original Lydia lion was minted in Sardis, in present-day Turkey.

The modern non-circulating coin is a very small gold coin, with 1.24 g of gold, 14 mm in diameter. The Lydia lions are trites (1/3 stater) with, typically ~4.7 g of electrum, but a similar diameter to the modern coin.

So it is in honor of the establishment of the first hard currency. But it is also a testimony to hyper-inflation. The face value of the coin is 1,000,000 Turkish Lira!

Here it is in hand:

 

And here it is next to an actual Lydia Lion. This particular Lydia lion (right in the figure)  is struck from the first die used in the series; later dies look a little more like the coin memorialized (for instance, later coins have the downward facing chevrons in the mane seen in the Turkish non-circulating coin).

 

The irony of this non-circulating coin is great. A testimony to the first ancient official, stable currency in the form of a hyper-inflated 1,000,000 Lira coin!

Addendum: inflation in Turkey was 100% in 1994. This is super high. But I understand that "hyper inflation" is formally 50% inflation per month - so I will amend the above to "super-duper high inflation" rather than "hyper inflation".

Edited August 24 by Bonshaw
Added addendum

[MrMonkeySwag96]

I used to collect United States commemorative coinage. In my opinion, these are some of the most beautiful American coins:

1925 Lexington Concord half dollar

 

1926 Vermont half dollar

 

1936-D Texas Independence half dollar

 

1921 Alabama half dollar

 

1936-S San Francisco/Oakland Bay Bridge half dollar


 

1923-S Monroe Doctrine half dollar

 

1926-S Oregon Trail half dollar 

 

1925-S California Diamond Jubilee half dollar

1935-S San Diego half dollar

 

Edited August 24 by MrMonkeySwag96

[Qcumbor]

I'm not a big fan of NCLT coins to say the least. Some of them though, combine a nice design to the value of bullion, as writen above, thus it may be fun to get a couple (it doesn't hurt to have a few grams of gold as savings, does it ?)

Q

[Finn235]

I agree with the rule that whatever suits your fancy is fair game to buy. I personally don't see the point of the "tacky" NCLT coins like the Mountain Dew bottle caps, a terribly executed model of the Starship Enterprise, or coins with Marvel superheroes or Pokémon on them - primarily because they come across as "silver rounds" but they are sold at multiples of fair silver price, and marketed as "investments" when most in fact lose money on the secondary market.

I have a few, mostly only issues minted by the actual government, and Commemorating something actually important to the nation.

Some of my favorites that I have handy pics of:

Ireland 10 shillings 1966, 50th anniversary of the Easter Uprising

 

Japan, ¥100 1976, 50 years of Showa's reign

 

¥10,000 1986, 60 years of Showa's reign

 

¥5,000 1993, Royal Wedding of Crown Prince Naruhito

[John Conduitt]

These are non-circulating too:

Edward VII Maundy Penny, 1904

London. Silver, 11mm, 0.48g. Uncrowned portrait of King Edward VII right, legend around; EDWARDVS VII D : G : BRITT : OMN : REX F : D : IND : IMP : DES ·. Crowned denomination dividing date within oak wreath; 19 1 04 (S 3989).

Edited August 24 by John Conduitt

[Postvmvs]

I can't help but think of this...

 

[ChrisB]

Collect what makes you happy. I don't, by rule, look for NCLT's but when I see one that I like, I at lease give it some thought. I like to collect things with stories so the NCLT's that I do purchase are usually attached to a historic event. 

NIUE put these out in 2015 for example. They all have the Queen on the obverse and have a denomination of 2 dollars.