The market for commemorative coins, also known as bullion coins, featuring national symbols, is growing steadily. The global market size has exceeded $15 billion with an average market size per country of approximately $2.31 billion. South Korea is also considering introducing bullion coins, and discussions are underway, led by the Korea Minting and Security Printing Corporation (KOMSCO).
Six countries, including the United States, China, Canada, Austria, the United Kingdom, and Australia, are currently issuing bullion coins. In 2022, the sales of such coins in these six major countries amounted to $15.28 billion, which is three times the size of the market in 2019 that was $5.38 billion.
Bullion coins are legal tender issued by central banks to celebrate national events, anniversaries, and historical occurrences for a limited time. They have a par value, can be used in transactions, and can be exchanged for their par value at the central banks. For instance, the bullion coin issued temporarily for the 2018 Pyeongchang Winter Olympics is an example of such coins.
Bullion coins are a specific type of commemorative coin that serves not only as a means of remembrance but also as a way to promote a country’s image. Therefore, many countries issue them in larger quantities and for longer periods to promote their goods.
For instance, the United States uses eagles, China uses pandas, Canada uses maple leaves, and Austria uses the Philharmonic Orchestra as subjects that represent their respective countries in bullion coins.
The global market for bullion coins is on the rise, with major countries using international dealers like MTB and APMEX to distribute and sell them worldwide. The industry ecosystem is active in both domestic and overseas sales, as well as secondary markets for resale. On average, countries issue around $2.2 billion worth of bullion coins annually.
However, S. Korea has yet to issue bullion coins unlike other countries. In contrast to Australia and Spain, which have similar population sizes and GDP levels to S. Korea, the total issuance size of all bullion coins in S. Korea is only about 1 to 3 times a year, with an annual production of 30,000 to 50,000 coins. In 2021, Australia issued 16.5 million (182 issues) and Spain issued 1.16 million (15 issues) bullion coins.
In S. Korea, commemorative medals or bullion medals are traded instead of artistic coins.
However, these medals do not have a par value marked on them, which means they cannot be used in transactions. As a result, they are not considered legal tender and are subject to customs duties when exported abroad. This makes the market size smaller and demand lower.
KOMSCO, the official mint of South Korea, reported that the sales volume of bullion medals in 2022 was 90,000, with sales amounting to $4.08 million.
In order to expand the domestic commemorative coin issuance market, KOMSCO is advocating for the issuance of bullion coins. Since last month, they have been conducting a feasibility study for the bullion coin project and are planning to conclude the study by July.
