NEW PATTERNS OF GEORGIAN NUMISMATICS
D. Gogeshvili, N. Korsava
In accordance with the plan of arrangements aimed at provision of memorable coins’ minting, the National Bank of Georgia has carried out works directed towards sharing of experience and practice of the world’s leading central banks and mints. The policy of Austrian, Polish, Ukrainian, Norwegian, Czech, Latvian, Armenian and Russian central banks was studied.
With the purpose of marking a jubilee date or memorable events, central banks mint both coins having a certain motive (thematic or serial) intended for emission and special collection coins having numismatic value.
The purpose of minting by central banks of coins having special reverse is arousing of public’s and collectors’ interest to coins and the country’s propaganda in general.
As to coins having collection purposes, the aim of their emission, especially for the central banks that do not have their own mint, is not popularization of themselves, but of their country, its history, traditions and culture both inside the country and outside it. At the same time, the abovementioned activity is an important lever in the hands of any central bank and it can bring commercial profit along with raising of its image. For instance, the problem related to export of Georgian wine to Russia put on the agenda the issue of popularization of Georgian drinks on the world market, and, in our opinion, issue and selling on the world market of coins depicting the sorts of Georgian vine can make an important contribution to it.
Taking into account the fact that Georgia has centuries-old history and culture of coinage, the National Bank of Georgia considers it necessary to take appropriate measures for retaining and developing of these traditions.
Also noteworthy is the fact that the mentioned activities are of both cultural and commercial character and, correspondingly, in minting each coin having collection purposes, it is necessary that the Central Bank should properly study the demand of both the local and the international market from the viewpoint of purposeful use of its own means. At the same time, it is important that the design and theme of a minted coin should exactly reflect the interests the country and collectors and be attractive as both a present and an investment.
As the results of our study have shown, for this purpose central banks try to maximally cover the themes to be depicted on coins and retain a reasonable limit in their minting. Almost any country’s central bank has a special commission determining coins’ themes, which carefully chooses the ones that are interesting for the country and the world. As a rule, choosing of themes begins a few months before some jubilee date or the beginning of the chosen national or international program, taking into account the time necessary for the corresponding studies and advertisement arrangements.
Proceeding from the abovementioned, we consider it necessary that the following arrangements should be carried out with the purpose of subsequent extension of activities related to minting of memorable coins:
1. A partner mint should be chosen with the purpose of receiving consultations for distribution of Georgian coins on the international market and rendering other technical assistance.
2. With the purpose of maximally effective organization of numismatic activities, it is necessary to receive necessary consultations from the central banks that have much experience in memorable coins’ minting and, correspondingly, legal base for their selling.
3. Taking into account the public opinion, the national Bank of Georgia should elaborate a long-term national program. It should carry out public opinion polls with the purpose of revelation of popular themes to be depicted on coins. It is necessary that active advertising campaign should start after declaration of the bank’s plans with the purpose of revelation of the existing latent market (buyers) and determining of their interests.
At the same time, with the purpose of choosing of themes to be depicted on coins, the bank should establish active relations with Numismatic Association, the Ministry of Culture and public organizations.
Cooperation with the Ministry of Foreign Affairs is necessary for a better familiarization with interests of the Georgian diaspora abroad (with advertising of the National Bank’s objectives in local Georgian or other magazines and newspapers that are popular among them) and revelation of the small market that always remains devoted to Georgian coins or other items of Georgian origin.
4. Besides, participation in international numismatic programs would be desirable from the viewpoint of the country’s popularization and receiving additional incomes.
With the purpose of subsequent extension of the aforementioned works, the National Bank is going to take part in the annual international exhibition in Berlin for establishing useful contacts with collectors, dealers, leading distributors and a better study of emission programs of competitor central banks.
The first steps in this direction have already been taken. Besides a memorable coin marking the 25th anniversary of Tbilisi “Dynamo’s” victory in the final of the European Cup, the issue of a memorable coin devoted to launching of Baku-Tbilisi-Jeikhan oil pipeline is also planned.
In June the National Bank of Georgia is planning to issue the first investment gold medal depicting the “Golden Fleece”, by which it will make an important step for the country’s popularization. The investment coin will be a completely new direction in the history of Georgian money. It will be a unique mean of money investment and property accumulation, especially in conditions when the price of gold is permanently increasing on the world market. We have already studied the investment market of coins, the experience accumulated in this sphere and believe that “Golden Fleece” coin will be one of successful projects. By this coin we want to establish Georgia’s image as an oldest gold-mining country. The fact that Georgia is a “cradle of wine” is already known in the world, so we should also popularize the fact that our ancestors were mining and processing gold since ancient times.
The experience
of some countries:
Austria
As the EU member country, it once a year issues a 20 cent memorable coin in accordance with the monetary emission’s parameters. Other EU member countries do the same.
As to individual collection coins, it is a prerogative of the mint existing under the bank, which, in its turn, has two large numismatic companies with a corresponding activities’ areal (Germany-Austria). The products produced by the mint are multifarious. In 2005 the annual sum received sales of collection coins makes up 27.8 million euro (this does not include the investment gold coin, which is annually sold in the amount of 70.8 euro). As a rule, coins are minted out of precious metals and include a wide range of themes. For instance, culture, history, Austrian historical regions, sport, etc. Correspondingly, in according with the cultural program, coins are minted with the purpose of depicting important events and Austria’s achievements in the sphere of painting, architecture, music and literature.
Here we have to emphasize the circumstance that, unlike coins having collection purposes, whose evaluation takes place in accordance with the small number of their issue, rarity, beauty and minting technology, some countries implement the program of emission of investment coins made of precious metals. It is considered that this kind of coins is the best mean of investment and property accumulation. Correspondingly, the annual circulation of the abovementioned coins is assessed in millions. Among the investment coins, there is the greatest demand for Austrian, American, Canadian, Australian, South African and British ones. In 1989 Austrian mint first issued a gold investment coin called “Vienna Philharmonic” and until now it is considered as one of the most successful coins. According the account of 2005, Austrian Central Bank’s Mint annually sells 208 200 ounces (6.48 tons) of gold coins both inside the country and outside it, which in money terms makes up 70.8 million euro.
Investment programs are mainly implemented by the countries that are released from any taxes on gold, and where a commodity exchange is well developed in the banking system.
Poland’s Central Bank
Every year it puts in circulation gold, silver Nordic gold alloy (elementary metal) coins for collectors with the following themes:
Polish kings, polish travelers and researchers, places and fortresses, sport, the world’s animals; coins devoted to polish cultural monuments, etc. At the same time, the bank issues a coin with a face value of 2 zloty devoted to its region.
Latvian BankSince 1993 it has been actively participation in issuing of collection coins according to both international and national program. For present moment it issued 51 coins.
Among them, according to the international programs, it issued coins devoted to Olympic games, seafaring, wild life and child protection.
In 2001 the national program “Time and Values” started. The mentioned program contains 4 series. Each series includes 3 coins of different type. For present moment emission of coins envisaged by the first program is already completed. The mentioned program called “Our Roots” is devoted to Latvia’s eternal values.
The Bank of Latvia has planned the emission of jubilee coins of 8 different kinds devoted to Riga. The last coin will be issued in 2007. Each coin will be devoted to each century.
Latvian Central Bank carries out emission of coins with a face value of 1 lat having different reverses. Symbols, paraphernalia and signs characteristic of the country are depicted on them. According to the bank representative’s information, the mentioned coins were welcomed by the public and they will be issued till introduction of euro in the country. The bank also issues memorable coins depicting fairy tales’ characters and gold coins according to the world program “Smallest Size Gold Coins”.
Ukrainian Central Bank
Jubilee coins are devoted to: Ukrainian planes, architectural monuments, famous families, flora and fauna, folklore instruments, heroes of Cossack period, Ukrainian hero-cities, Ukrainian academies, on the thresholds of the millennium, eastern calendar, Ukraine’s famous personalities, Ukrainian princes, reestablishment of Ukrainian statehood, ritual holidays, Ukraine’s cultural values, sport, the 2000th anniversary of Christmas, etc.
In view of a large number of issued coins, Ukraine’s mint uses face values of all paper money being in circulation as well as specially chosen parameters.
Armenian Central Bank
Minting jubilee and memorable coins, Armenian Central Bank is mainly guided by Armenia’s memorable dates and the interest existing on the world numismatic market. The coins are mainly golden and silver ones and are devoted to sport, kings, outstanding personalities, European Council and Armenian armed forces.
At the same time, it also issues coins on international themes, such as flora and fauna being on the verge of extinction. For instance, a jubilee coin “Armenian Gull”, minted together with British Royal Mint, is very popular and is in a great demand.
Since 1994, it has issued collection coins.
Danish Central Bank issues jubilee coins that are completely devoted to memorable dates taking place in the royal family. For this purpose, it uses 200 crown silver and 20 crown coins of the same composition and parameters, which it uses for 20 crown small coins of regular emission.
The bank also issues thematic coins, e.g. depicting a) Danish castles and b) motives of Andersen’s fairy tales.
They have planned to issue coins with 9 different images of castles, the final minting of which will be completed in 2007, and then they will be sold in the form of a special collection. The same 20 crown nominal, with the parameters envisaged for a regular emission 20 crown coin, will be used for them.
Coins devoted to fabulous themes are issued in three different types: gold, pure silver and ordinary alloy, with face value of 10 crowns.
Norwegian Central Banks
It issues coins of two types: emission ones of special issue and jubilee silver or gold ones, which are devoted to: important national and historic events, important events that took place in the country’s monetary history, outstanding figures of culture, history and other fields that glorified their country.
Here the principle of determination of nominals and their parameters is the same as is shown by the example of other countries.
Czech Bank issues jubilee coins out of precious metals, according to the extensive national program.
Russian Central Bank
90% of the whole marked is occupied by memorable coins made of precious metals on the following themes:
a) Coins of historical and geographical series;
b) Sport.
They have long-term programs: Russia’s Red Book, Russian architectural monuments, Russia’s famous figures, Russia’s distinguished generals and marshals, protection of nature, zodiac signs, etc.
Since 1996 Russia’s Central Bank have been successfully selling its 10 ruble “golden tchervonets” and 3 ruble “sable” investment coins.