Collection of Commemorative Coins in Circulation
The so-called commemorative coins in circulation are to commemorate events in international and domestic politics, economics, history, culture, sports, historical figures, rare animals and plants. Issued by the People’s Bank of China, they include ordinary metal, paper, and plastic commemorative coins. They may be circulated based on actual denominations with statutory face value. Since they are circulated as national legal tender, the issuance process of commemorative coins faces strict requirements with regards to the coin theme, denomination, pattern, texture, pattern, specifications, circulation, distribution, and therefore retain high authority. At the same time as collectors expanded their interests, commemorative coins gradually revealed their own charm and value as an art collectible and increasingly attracted collectors’ attention.
Circulation of commemorative coins has existed for only a short period of time. Moreover, given their relatively low quantity and starting point, the returns can be comparatively higher than risk, and collectors are not required to possess a deep knowledge of coin collection. Consequently, the collection of circulated coins is known as “civilian collection” in the industry. Industry experts remind collectors that with some focus on investing skills, the investment benefits of such collection can be even greater. For example, prices rise comparatively to the length of issuance time.
“Scarcity value” is the rule of thumb when it comes to collection according to industry insiders. Early commemorative coins were circulated in several million units. So it follows that the earlier issuances have seen their market values rise with the passage of time, even when the original issuance was high in volume, the actual numbers surviving in circulation is low. Therefore, early issuances have become highly sought after, such as “the 35th anniversary of National Day”, “Tibet”, “Six Games”, “Ningxia” and the “40th anniversary of the People’s Bank” commemorative coins. The “the 35th anniversary of National Day” coin set was issued on October 1984 with a total of 20.41 million sets, each set contained three coins each having a face value of 1 Yuan. From the end of 2005 to 2006, the price of a single set rose from 90 Yuan to 120 Yuan and continues to rise even today. Another example is the 1988 release of the “People’s 40th anniversary” coin, which because of its limited release of just over 2 million units, became highly sought after immediately after release. Its market prices rose from the face value of 1 Yuan to 1,680 Yuan per coin.
A System of Commemorative Coin Collection – Subject Categorization
In over two decades, China has issued more than 70 sets of commemorative coins, which have created a rich series of thematic subjects such as wildlife, national autonomous regions, the founding family, people and characters, heritage, Lunar New Year, Taiwan, history and sports. For most investment-type collectors, therefore, it is a challenge to collect all sets both in terms of economics and practicality. It is best that collectors screen by the themes in order to ease the collection process through reducing the universe of collectible coin candidates and the amount of investment needed.
Timing of Purchases
According to insiders, partially due to the hot and humid weather, every summer is the time when demand in the commemorative coin market wanes and prices for many varieties drop. Price increases often follow new releases, while as supply increases the price will usually drop. The price of earlier issuances also rises steadily and so should be purchased early on. However, collectors should avoid getting in at peaks for some speculative varieties until the market returns to normal. Buying is encouraged once collectors gain a grasp on the price fluctuation cycle of the coins.
Beware of Coin Fraud
In recent years as coin collection activity heats up, the number of fraudulent coins in circulation has also been on the rise. The severity of this problem is not just limited to high-grade sets such as “Ningxia” and “Tibet”, but also is prevalent in some lower grades. Many of them have been made carefully, making it difficult for collectors to distinguish their authenticity. Therefore, extreme care must be taken when purchasing commemorative coins to prevent being scammed. Luckily, industry experts have introduced one way of identifying counterfeits from the coin edges. Because fake coins are made through a process of open compression, they often leave small file marks around the rim, which does not exist on authentic coins. Collectors may detect such fraudulent signs by observing carefully with a magnifying glass.
