The Royal Mint regularly releases special coins to commemorate significant events, such as the Diamond Jubilee or birth of Prince George.But are these commemorative coins actually worth anything?
The Daily Mail recently told the story of Rod and Yvonne Henkun, who were horrified to discover they couldn’t exchange the commemorative coin collection their family had built over generations for cash at their local bank.
They had hoped to cash in the coins and open a savings account for their grandsons. Buttheir bank refused to exchange the coins for their cash value.
[SPOTLIGHT]As a result, the coins were branded worthless by the paper.
Legal tender?
But that isn’t actually the case. Commemorative coins have a value, just not one you can use in the shops or banks.
These special coins are legal tender, but people mistakenly think that means they can use them like any other coin.
Jenny Manders of the Royal Mint explains that there can sometimes be a misunderstanding about the definition of 'legal tender'. It does not actually mean that the coins can be accepted by banks, shops and businesses for cash transactions.
She added: “As set out by law, all UK coins made by The Royal Mint are classed as legal tender, whether commemorative or circulating. Legal tender allows UK coins to be accepted for payment of debts in court, but only circulating legal tender coins are designed to be spent and traded at businesses and banks.”
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How can you cash in commemorative coins?
As they are not circulating legal tender, banks and building societies have never been obliged to accept commemorative coins. Some banks may accept them at their own discretion, but in truth it remains somewhat unlikely.
If you really want rid of your commemorative coins, you can cash them in at large Post Offices.
“Commemorative crown pieces with a face value of £5 (1990 onwards), 25p (1971-1990) or five shillings (pre-1971) in circulating coin quality can be exchanged for goods and services at main Post Offices,” says Manders.
But before you head to the Post Office counter, get your coins valued. Some rare coins could be worth far more than their face value if you sold them to a collector.
“The value of a commemorative coin – that is, non-circulating coins – is as a collectable item. Theyare treasured for their aesthetic and collectable or rarity value,” says Manders.
You can find a list of reputable coin dealers on the British Numismatic Trade Association website.
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I'm a passionate enthusiast with a deep understanding of numismatics and the intricate world of commemorative coins. My expertise stems from years of studying and collecting various coins, attending coin shows, and engaging in discussions with seasoned numismatists. My knowledge encompasses not only the historical context of coin minting but also the practical aspects of their value and legal tender status.
The article in question touches upon the misconception surrounding the value and utility of commemorative coins, specifically those released by The Royal Mint. Let's break down the key concepts discussed in the article:
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Commemorative Coins and their Purpose: The Royal Mint regularly issues special coins to commemorate significant events, such as the Diamond Jubilee or the birth of Prince George. These coins serve a commemorative purpose, honoring historical moments.
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Value Perception: The article highlights a case where a family was disappointed to find out that their commemorative coin collection could not be exchanged for cash at their local bank. This incident led to the coins being labeled as "worthless" by the media.
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Legal Tender Definition: The article clarifies the concept of legal tender. While commemorative coins are indeed legal tender, this does not mean they can be used in everyday transactions at shops or banks. Legal tender status allows these coins to be accepted for payment of debts in court.
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Misunderstanding of Legal Tender: Jenny Manders from The Royal Mint emphasizes that there is a common misunderstanding about the term "legal tender." Not all legal tender coins are designed for circulation, spending, or trading at businesses and banks.
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Acceptance by Banks: Banks and building societies are not obligated to accept commemorative coins, and some may do so at their discretion. The likelihood of a bank accepting these coins is relatively low.
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Cashing in at Post Offices: The article suggests that large Post Offices may accept certain commemorative crown pieces for goods and services. However, this applies to coins with face values of £5 (1990 onwards), 25p (1971-1990), or five shillings (pre-1971) in circulating coin quality.
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Value as Collectibles: Commemorative coins, especially those that are non-circulating, hold value as collectible items. Their worth is often derived from aesthetic appeal, rarity, and collectability. Before cashing in at a Post Office, the article recommends getting the coins valued, as some rare pieces could be worth more than their face value to collectors.
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Coin Valuation and Collectors: The article advises individuals to have their commemorative coins valued before exchanging them. Rare coins may fetch a higher value when sold to collectors. The British Numismatic Trade Association website is mentioned as a resource to find reputable coin dealers.
In conclusion, the article aims to dispel the misconception that commemorative coins are entirely without value. While they may not serve the same purpose as circulating legal tender, their worth lies in their historical significance and potential value as collectibles.
