The Gold Chervonets
Less details, more portraits
Foreign numismatists don't understand the design of Russian coins always
Russian memorable coins are in demand not only in Russia.
But numismatics market in our country differs from European market.
Mr. Manfred Dunker, the managing director of the company European Concept Creation Center, entering Samlerhuset Group (uniting more than ten national numismatics firms) is answering the questions of the magazine "Watermark".
— What do Russian memorable coins differ from memorable coins, produced in other countries by?
— The design of Russian coins may be characterized as more emotional and simultaneously less understandable for collectors. In the design of Russian coins a lot of details is used. Memorable coins of other countries are traditional: in their design there is a traditional subject. For example, portraits.
— Are Russian memorable coins interesting for European collectors?
— At the end of the 80-s-beginning of the 90-s Soviet and then Russian coins were in great demand all over the world. It was supported by a rank of factors. Despite the long-time character the monetary program had clear and understandable structure both for dealers and collectors. The coins were sold very quickly.
The main factor, helping the growth of popularity of the coins among collectors, is understanding and recognizing their subjects and designs. It was characteristic for Soviet and Russian memorable coins that period of time. Together with good knowledge of Russian history abroad it made the demand for the coins stable and high.
It"s important to remark also, that that time very good organized net of coin distribution was created all over the world. Dealers had high motivation, were involved actively into planning the structure of the program, drawing up subjects and designs of the coins.
For last ten years the situation was changing gradually. Possible to say that the international market of Russian coins, their sales appeared to be destroyed in some way. One of the reasons is significant growth of the number of coin issues. It made collecting Russian coins for most buyers too expensive.
From another side, one more reason of the interest loss is rather big printing some coins, causing their depreciation. On the contrary, other coins were produced in small printing and many collectors couldn"t get them and gather a full collection. As the result, many numismatists have decided to refuse from collecting Russian coins.
— Now German numismatics company MDM together with Goznak is planning to issue a series of Russian memorable coins. Why did the interest for this production appear?
— With the program MDM is intending to return the success of Soviet and Russian monetary program of the end of 80-s-beginning of 90-s. The designs, being the most famous and understandable for collectors in West Europe, were chosen for the purpose. The program demonstrates the united image of Russia for European people. On the medals people will see Russian historical figures, monuments, buildings-the images they know well.
Besides, the program is exclusive for the company MDM. It means that the company"s expenses for advertising, marketing and supporting secondary market will not be used for getting profits by any other companies, having made no investments. It means nobody will be able to break the market by using dumping prices.
— What is the base for being sure for the medals to be in demand?
— Russia and Russian history are becoming more and more popular in European countries. They are paid a lot of attention in mass media, especially in the year of celebrating of the 300th anniversary of Saint- Petersburg. This interest will encourage the sales growth of medals with Russian subjects.
In general, nowadays many European people, German in particular, realize that their mentality is much closer to Russian one than American or British.
— On the whole, do European collectors prefer coins of their countries?
— In general, the preference is for local coins. Especially it is characterized for Great Britain and the USA. But in Germany, Switzerland, Austria, Scandinavian countries collectors like to gather foreign coins as well. They buy the coins they like, if, of course, they understand their design, subject and conception.
— Do collectors have any preference for metal, the coins are minted from: gold, silver, platinum, non-ferrous metals?
— It depends on the region. For example, in Asia there is preference to gold coins, but in Europe silver coins are of great popularity. But any case, the most popular are coins from precious metals.
The demand for gold coins depends on fluctuation of the world prices for gold significantly. As for silver coins, the same factor influences not greatly.
Coins from platinum and palladium have rather limited demand in Europe and Asia. It is slightly higher in the USA, but also limited. From another side, if the design and conception are chosen correctly, as it was done with the coins of "Russian ballet" of the first issues at the beginning of the 90-s, platinum and palladium coins can have big success all over the world.
— Coins with what representations attract the most interest of Western collectors: architectural monuments, outstanding figures, historical events, geographical subjects, animals, sport events?
— The most important is for the design to be understandable for collectors.
The designs of some coins, making a combination from the representation of a famous person and historical monument or event, are popular. Very demanded are the coins, devoted to remarkable sport performances: Olympic games, world football championships. Also the coins with representation of wild animals are in good demand.
It"s impossible to forget about the level of significance of present or historical events and personalities. For example, the coin with the representation of Ekaterina the Great will be more demanded in the international market than the coin with the representation of any unfamiliar in the world figure, even if he is well-known in the country-emittent.
The most popular in Europe are euro coins. Thanks to them millions of people began taking up collecting. The back side of the coins are the same, independent from the country-emittent, but the facial sides of the coins differ. People are tending to gather full collections from all coins of all countries, making minting euros.
— Do the countries- members of the European Union coordinate their programs of issuing memorable coins any way?
— Earlier this coordination was absent. It concerned only coins for circulation. But in 2004 it will be the first time for 12 European countries to implement the coordinated program-one silver coin from every country-in honour of joining ten new countries to the European Union.
In 2006 the mutual monetary program, devoted to the 50th anniversary of Rome agreement about foundation of the European economic association will be implement. In 2007 the analogical mutual program will be devoted to the 5th anniversary of taking euro into circulation.
Another mutual project will be monetary programs, devoted to the world heritage of UNESCO, which will be arranged by the company MDM and other firms, forming Samlerhuset Group.
— What countries of the world are the most active in issuing memorable coins?
— This indicator differs very much. So, Norway implements the issue of one silver coin once in two years. As for France, it mints 10-20 types of coins a year. Everything depends on the demand and the targets, which the countries-emittents have.
— What is average printing of memorable coins issuing?
— For next 5 year Germany is planning to issue gold coins of 500 thousand copies printing annually. In the process all these coins will be sold thanks to PR and advertising supporting and activeness of dealers.
The same time other European countries implement minting gold coins of printing of 5-10 thousand, which may stay unsold.
— Do Russian collectors express any interest to foreign memorable coins? Is there an opportunity to sell these coins in Russia?
— Thanks to some tests we know that Russian collectors express significant interest to foreign coins. The most successful direction of development of the business might have been foundation of joint enterprise between a Russian firm and a strong foreign company, working in the business.
It"s necessary to clarify what coins from what countries will be mostly demanded in Russia. The most important action would be holding a numismatics conference in Moscow with participating the Russian organizations, taking part in issuing the coins. During the conference Russian citizens could see foreign coins. Such conference could be used for informing collectors about foreign coins andmints. The similar performance, held in China, encouraged the start of collecting foreign coins in the country.
Andrey Bolotov
