Medal-coins
Encyclopedia
Non-circulating legal tender (NCLT) is a coin-like object that cannot be used or is not used for payments, so they are not money
. They are minted for sale to collectors only. They are also called pseudo coin or medal-coin. Advanced collectors typically try to avoid buying NCLT, so that buyers are often beginning or superficial collectors. For this reason, there is only a shallow secondary market for NCLT, so that it can often be sold only at melt value. Therefore, issuers normally try to hide the status of NCLT by intensive marketing
, with terms like "legal tender
", "limited mintage", "demanded by collectors" or even "investment
", stressing precious metal
content and luxury execution.
The issuers sell NCLT well above its nominal value, so that it cannot circulate. NCLT may be issued for non-existing countries, non-sovereign entities or uninhabited islands (fantasy pieces). They may have impractical or anachronistic denominations, they may be issued only as proofs
, they may be colourized or in an anachronistic coin metal, such as silver
or gold
.
Issuers of NCLT may be private coiners, such as Franklin Mint, Italcambio, New Zealand Mint, The London Mint Office, The Commonwealth Mint and Pobjoy Mint, or they may be government or privatized national mints, such as those of Australia, Austria, Canada, China, Cuba and France.
Money
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...
. They are minted for sale to collectors only. They are also called pseudo coin or medal-coin. Advanced collectors typically try to avoid buying NCLT, so that buyers are often beginning or superficial collectors. For this reason, there is only a shallow secondary market for NCLT, so that it can often be sold only at melt value. Therefore, issuers normally try to hide the status of NCLT by intensive marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
, with terms like "legal tender
Legal tender
Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency is a common form of legal tender in many countries....
", "limited mintage", "demanded by collectors" or even "investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
", stressing precious metal
Precious metal
A precious metal is a rare, naturally occurring metallic chemical element of high economic value.Chemically, the precious metals are less reactive than most elements, have high lustre, are softer or more ductile, and have higher melting points than other metals...
content and luxury execution.
The issuers sell NCLT well above its nominal value, so that it cannot circulate. NCLT may be issued for non-existing countries, non-sovereign entities or uninhabited islands (fantasy pieces). They may have impractical or anachronistic denominations, they may be issued only as proofs
Proof coinage
Proof coinage means special early samples of a coin issue, historically made for checking the dies and for archival purposes, but nowadays often struck in greater numbers specially for coin collectors . Many countries now issue them....
, they may be colourized or in an anachronistic coin metal, such as silver
Silver
Silver is a metallic chemical element with the chemical symbol Ag and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal...
or gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
.
Issuers of NCLT may be private coiners, such as Franklin Mint, Italcambio, New Zealand Mint, The London Mint Office, The Commonwealth Mint and Pobjoy Mint, or they may be government or privatized national mints, such as those of Australia, Austria, Canada, China, Cuba and France.