FNMT coins: a safe haven that never gains value
Spain's FNMT 12-euro coins contain silver worth 0.72 €/gram, according to a forum user's calculation. They do not appreciate, and mintage reaches 2 million pieces.
English · Original discussion in Spanish · Published
FNMT coins: the safe haven that never gains value
Does it make sense to spend your savings buying all the commemorative coins issued by the Fábrica Nacional de Moneda y Timbre (Spain's national mint)? The question, raised by a saver looking for shelter from uncertainty, runs through an analysis that dismantles the numismatic illusion. The prevailing conclusion is that the 12-euro silver coins are not an investment, but insurance at face value. A refuge that charges no premium, but generates no capital gains either.
The premium on commemorative silver
The first problem is the price. The 12-euro coins contain 18 grams of 925-fine silver. The calculation is merciless: the gram works out at 0.72 euros, while pure silver from a troy ounce trades at 16.6 euros. The gap between face value and intrinsic value is abysmal. You pay 12 euros for something worth just over 4.5 euros in the metals market.
The comparison with other international bullion coins is unflattering. An Austrian Philharmonic or an American Silver Eagle is 999 fine silver, comes encapsulated and has worldwide reach. The Spanish ones, by contrast, come in a little plastic bag and their mintage reaches 2 million pieces. A monstrosity, one analyst declares. The point is no trifle: silver is an industrial and financial asset, not a souvenir.
Why doesn't the Banco de España run out of coins?
The paradox is that, despite the criticism, the 12-euro coins sell out at the Banco de España. Some see a hoarding manoeuvre by numismatists. Others simply believe it is better to hold silver than banknotes under the mattress. Liquidity is their only advantage: they can be exchanged for face value at any time, with no need to find a buyer.
The problem is that this liquidity does not protect against inflation. If silver rises 30%, your coins will still be worth 12 euros. You do not capture the metal's appreciation. You only have insurance against hyperinflation, not an asset that grows. A perversos business, one veteran sums up.
The trap of numismatic appreciation
Recent history disproves expectations of capital gains. Spanish commemorative coins issued since 1989 have barely gained value. The internet has blown up the traditional numismatic market: pieces that catalogues valued at fortunes now turn up on digital platforms for far less. Appreciation is a chimera for the small saver.
Experts recommend that anyone wanting to invest in metals turn to international bullion coins or bullion itself. Numismatic gold, such as the Alfonsinas or Napoleons, performs better, but demands knowledge and contacts. For the average investor, the conclusion is clear: 12-euro coins are not an investment, they are an expensive pastime.
The fever for commemorative silver cools as soon as you get the calculator out. Anyone looking for a real safe haven should look elsewhere. Or buy real ounces, not legal-tender keepsakes.
Does it make sense to spend your savings buying all the commemorative coins issued by the Fábrica Nacional de Moneda y Timbre (Spain's national mint)? The question, raised by a saver looking for shelter from uncertainty, runs through an analysis that dismantles the numismatic illusion. The prevailing conclusion is that the 12-euro silver coins are not an investment, but insurance at face value. A refuge that charges no premium, but generates no capital gains either.
The premium on commemorative silver
The first problem is the price. The 12-euro coins contain 18 grams of 925-fine silver. The calculation is merciless: the gram works out at 0.72 euros, while pure silver from a troy ounce trades at 16.6 euros. The gap between face value and intrinsic value is abysmal. You pay 12 euros for something worth just over 4.5 euros in the metals market.
The comparison with other international bullion coins is unflattering. An Austrian Philharmonic or an American Silver Eagle is 999 fine silver, comes encapsulated and has worldwide reach. The Spanish ones, by contrast, come in a little plastic bag and their mintage reaches 2 million pieces. A monstrosity, one analyst declares. The point is no trifle: silver is an industrial and financial asset, not a souvenir.
Why doesn't the Banco de España run out of coins?
The paradox is that, despite the criticism, the 12-euro coins sell out at the Banco de España. Some see a hoarding manoeuvre by numismatists. Others simply believe it is better to hold silver than banknotes under the mattress. Liquidity is their only advantage: they can be exchanged for face value at any time, with no need to find a buyer.
The problem is that this liquidity does not protect against inflation. If silver rises 30%, your coins will still be worth 12 euros. You do not capture the metal's appreciation. You only have insurance against hyperinflation, not an asset that grows. A perversos business, one veteran sums up.
The trap of numismatic appreciation
Recent history disproves expectations of capital gains. Spanish commemorative coins issued since 1989 have barely gained value. The internet has blown up the traditional numismatic market: pieces that catalogues valued at fortunes now turn up on digital platforms for far less. Appreciation is a chimera for the small saver.
Experts recommend that anyone wanting to invest in metals turn to international bullion coins or bullion itself. Numismatic gold, such as the Alfonsinas or Napoleons, performs better, but demands knowledge and contacts. For the average investor, the conclusion is clear: 12-euro coins are not an investment, they are an expensive pastime.
The fever for commemorative silver cools as soon as you get the calculator out. Anyone looking for a real safe haven should look elsewhere. Or buy real ounces, not legal-tender keepsakes.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (55 replies).
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