Medal-coin || Coin
Published September 16th, 2007 in UncategorizedA medal-coin or non-circulating legal tender (NCLT) coin is regarded as legal tender, but it does not circulate for the following reasons:
- The intrinsic value exceeds the denominational value.
- The currency unit is not in common use.
- The coin is issued in proof only.
- The coin is sold to collectors at a premium above the face value.
The coins of Bophuthatswana were examples of medal-coins. The Krugerrand is an example of a medal-coin, even though it is a bullion piece.
According to the afore-mentioned definitions, the term “medal-coin” is, in of itself, an oxymoron. A medal is primarily defined solely as a flat piece of metal stamped with a design or an inscription commemorating an event or a person, often given as an award, and bearing no legal tender value. Whereas, a coin, in its numismatic sense, is a small piece of metal, usually flat and circular, authorized by a government for use as money. Logically, a “medal-coin” cannot be both with and without a legitimate legal tender value. Therefore, the most suitable term to describe the item previously portrayed by definitions 1 thru 4 is Non-Circulating Legal Tender.
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