Recently, as global uncertainty grows and the areas of silver utilization expand, silver prices have surged. The face value and selling prices of commemorative coins made of silver are also on the rise. With the rapid increase in commemorative coin prices, there are observations that the popularity of commemorative coins may sharply decline.
According to the New York Mercantile Exchange (COMEX) on the 26th, the silver futures price closed at $39.5 per ounce on the 23rd (local time), the highest level in 14 years. Citibank forecasts it will rise to $43 in the next 6 to 12 months. This is due to increased investment in safe assets triggered by U.S. tariffs and the rising demand for silver, which is widely used in new industries like solar energy and electric vehicles.
The surge in silver prices is also impacting the prices of commemorative coins. According to Korea Minting, Security Printing ＆ID Card Operating Corporation (KOMSCO), the face value of silver commemorative coins issued over the past five years was around 50,000 won, but the recently pre-sold '30th Anniversary of Local Self-Governance' commemorative coin was issued for the first time at a face value of 70,000 won. The face value is the price stated on the commemorative coin, which can also be exchanged for cash at the Bank of Korea.
Along with the increase in face value, selling prices reflecting the production and packaging expenses are also rising. The commemorative coin issued in April, '100th Anniversary of Census Statistics,' was sold for 64,500 won, but the selling prices for this month's releases, '30th Anniversary of Local Self-Governance' and '80th Anniversary of Liberation,' have been set at 83,500 won and 85,000 won, respectively.
If silver prices continue to rise, the face and selling prices of the APEC commemorative coins scheduled to be issued in September and October are expected to rise further. The Bank of Korea noted that 'the issuance decision is expected to be made next month following a monetary policy committee resolution.' Should the issuance of the APEC commemorative coins be confirmed, it is expected that the coins will be 99.9% silver, with a diameter of 35mm and a weight of 19g.
A Bank of Korea official stated, 'The selling prices of commemorative coins used to be around 50,000 won in the past, but recently they have risen to the 80,000 won range,' adding, 'As the prices of precious metals, including silver, have skyrocketed in a short period, we are responding by either reducing the size of silver coins or increasing their selling prices.'
There are also concerns within the issuing agency that the sharp rise in commemorative coin prices could lead to a decline in demand. According to KOMSCO, there have been no cases of commemorative coins exceeding 50,000 units issued since 2020. The average issuance from 2020 to 2024 is about 24,000 coins, and related coins for events like the Jamboree, Nuriho, Suncheon Bay Expo, and Korea's key industries have sold less than 20,000 units.
The Bank of Korea analyzed that 'the combination of rising commemorative coin prices and changes in collecting culture has had a multifaceted impact.' KOMSCO also explained, 'While there is still a loyal customer base among middle-aged and older individuals aged 50 and above, the diversification of collecting methods has reduced the incentive for currency collection.'
However, commemorative coins are produced and sold through a reservation system from the late 1990s, so even if demand decreases, there is no structure for excess inventory.
In the National Assembly, there was a debate over the APEC Special Act that included provisions for the issuance of APEC commemorative coins. At a subcommittee meeting of the National Assembly's Foreign Affairs and Unification Committee held on Nov. 8 last year, lawmakers from the Democratic Party of Korea and the Rebuilding Korea Party told former Deputy Minister of Foreign Affairs Kang In-sun that 'commemorative coins and stamps are outdated' and that 'it is necessary to consider other forms of commemoration.'
Democratic Party of Korea lawmaker Lee Jae-kang argued, 'Rather a towel would be better,' suggesting that if the APEC Special Act includes the phrase about issuing commemorative coins, it should be deleted. However, as there was an opinion that 'just because it is stated in the bill does not necessarily mean it has to be issued,' the bill was passed as originally drafted.
The Bank of Korea remains positioned that 'the situation could change if noteworthy commemorative coins are issued.' A Bank of Korea official stated, 'In recent years, there has been a lack of notable themes, but past commemorative coins like those for the Pope's visit to Korea attracted significant popularity.'