Do you have a shiny, beautifully designed commemorative coin in your possession? It might be a family heirloom or something you bought on a whim when the bank issued it. At this point, a big question must have popped into your head: “Can I use this commemorative coin that looks much fancier than a regular coin?”
The answer is: It depends on who issued it!
Before we delve deeper into this issue, we must first establish a core concept—”Legal Tender.”
What is Legal Tender?
Simply put, legal tender is currency that a country’s laws have declared to be valid for meeting financial obligations. Whether it’s banknotes or coins, as long as it’s issued by the nation’s central bank, no one can refuse to accept it for any transaction or debt settlement within the country. This is known as “compulsory circulation power.”
That’s right! If the commemorative coin you have was issued by the Central Bank of Taiwan, such as the Zodiac commemorative coin sets or coins celebrating specific events (like the 50th anniversary of Taiwan’s retrocession), then it has legal tender status. Theoretically, you could take a commemorative coin with a face value of NT$100 to a convenience store and buy NT$100 worth of goods.
BUT! Hold on! We strongly advise against doing this. The true value of such commemorative coins is almost always far greater than their face value. Spending it like regular currency would be like using a rare piece of Wagyu beef to make minced pork rice—a complete waste!
There are many other commemorative medals and coins on the market issued by private institutions, companies, or even foreign mints. Although these products may also be made of precious metals like gold and silver and feature exquisite designs, they do not have legal tender status in Taiwan. You cannot use them to buy groceries or pay bills.
Their value is determined entirely by their material, artistic merit, and market demand, placing them in the category of “collectibles” or “crafts,” not “currency.”
Since it’s not recommended to spend central bank-issued commemorative coins, what determines their actual “worth”? Understand the following five key factors, and you’ll be able to quickly assess the potential value of your coins like an expert.
This is the most straightforward basis for value. Is the commemorative coin made of gold, silver, or a common copper-nickel alloy? The difference in value can be astronomical. A commemorative coin containing one ounce (about 31.1 grams) of gold has significant intrinsic value from the gold itself, which serves as the most basic “floor price” for its commemorative coin value.
“The rarer, the more valuable” is an ironclad rule in the world of collecting. The smaller the mintage of a commemorative coin, the fewer are in circulation, and its rarity naturally drives up its value. For example, some early issues with limited runs of a few thousand sets can have a market price tens or even hundreds of times their face value.
The condition of a commemorative coin is crucial. Scratches, oxidation, stains, or wear will severely impact its value. The ideal state is “Uncirculated,” meaning it has never been in circulation and is in perfect, like-new condition. Furthermore, the completeness of the original packaging, including the box and certificate of authenticity, is a major plus for collectors. Removing a coin from its original protective capsule is a major collector’s taboo!
The theme of a commemorative coin affects its popularity. Generally, themes like the Zodiac, historical figures, major events, or topics related to Chinese culture tend to be more popular in Chinese-speaking collector circles. When a particular theme is sought after, the price of related commemorative coins naturally rises.
For high-value commemorative coins, certification and grading by internationally recognized authorities like PCGS or NGC are key to their market liquidity. These organizations professionally assess the coin’s authenticity and condition, assign it a grade (usually on a scale of 1-70), and seal it in a special protective holder. A graded coin typically has a more stable value and is easier to trade on the international market.
Once you understand the value of your commemorative coins, the next step is to find the right channels to sell them. Here are the three main commemorative coin buyback channels, complete with a comparison of their pros and cons, so you can see them at a glance.
The Bank of Taiwan is the official distribution channel for some central bank commemorative coins and also offers a buyback service. However, note that not all commemorative coins are eligible for buyback. It is usually limited to specific modern sets, and the bank buys them back at “face value” or slightly above, mainly to guarantee their status as legal tender. It is basically impossible to make a collector’s profit through this channel.
This is the most common and quickest way to sell commemorative coins. The owners of professional coin shops are usually experienced and can quickly appraise your coins and offer cash for them. They are familiar with market trends and can handle a wide variety of commemorative coins. The downside is that since coin shops are for-profit businesses, their purchase price will inevitably be lower than the retail market price, as they need to maintain a profit margin.
If you have some knowledge of your coin’s value and hope to get a higher price, consider using online auction platforms (like Yahoo! Auctions, Ruten) or joining coin collector groups on Facebook. Here, you can deal directly with collectors, cutting out the middleman and potentially getting your ideal price. The downside is that you have to handle everything yourself—taking photos, listing the item, answering questions, processing the transaction, and shipping—which can be time-consuming. There is also the risk of encountering bad buyers.
| Channel | Pros | Cons |
|---|---|---|
| Bank of Taiwan | Official channel, guaranteed Simple process |
Limited to certain sets Buyback price is only face value |
| Coin/Stamp Shops | Quick appraisal, instant cash Handles a wide variety |
Purchase price is below market value Need to choose a reputable shop |
| Online Auctions/Groups | Potential for the highest price Deal directly with collectors |
Time-consuming, complex process Risk of transaction issues |
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In conclusion, although commemorative coins issued by our central bank are indeed legal tender and can be used for purchases, this is definitely not their best use. Their true commemorative coin value is often far higher than their face value, determined by a combination of factors such as precious metal content, rarity, and condition. When handling these valuable collectibles, understanding the different commemorative coin buyback channels and choosing the method that best suits your needs is key to maximizing your returns.
The next time you examine a commemorative coin, don’t be in a hurry to spend it or sell it casually. Instead, follow the guidance in this article and, like a detective, explore the real collection story and market value behind it.
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Face Value is the monetary value printed on the coin as legal tender, such as NT$10, NT$50, or NT$100. This is its minimum legal value. Market Value is the price that buyers in the collector’s market are willing to pay for the coin. It is often much higher than the face value and is determined by the five key factors we discussed earlier. Simply put, face value is a legal guarantee, while market value is a market endorsement.
Absolutely not! The original acrylic capsule or holder is the first line of defense for protecting the coin’s condition. Once removed, exposure to air can cause oxidation, and the oils from your fingers can cause permanent damage to the coin’s surface. Any blemishes in its condition will significantly decrease its value. Please treat it as a work of art to be “admired from a distance, not handled.”
Yes, and the effect is devastating! Any form of cleaning, wiping, or polishing will leave microscopic scratches on the coin’s surface, destroying its original luster and patina (the natural layer of oxidation that forms over time). In the eyes of a professional collector, a cleaned coin is considered “damaged,” and its value will plummet. Please maintain its original state, even if it looks a bit old.
Not necessarily. The potential for a commemorative coin to appreciate depends on various factors. Generally, coins made of precious metals (gold, silver), with low mintage, popular themes, and in excellent condition have a higher potential to increase in value over the long term. However, some commemorative coins with very large mintages, made of common materials, or with unpopular themes may see their market value hover around their face value for a long time, or even fall below their original issue price.
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