Expert: PAPAJACK - 10/6/2008

Question
hi,
i'd like to buy coins from Palau but i dont know where they are minted i heard that us mint are but i cant find any ??

please help me :0

Answer
Hello Marcin,           

This country uses the United States Dollar for their currency.
There are some commemorative dollars being sold with the name of that country on them
They are not part of their monetary system and do not circulate there. Here is the country's web page if you need more information from them.
http://www.palaugov.net/index.html

These are not official released dollars.  They are made as a coin and sold as a collectable.
But their value is questionable. They are usually sold as a novelty rather than a numismatic item.

All coins must be issued by a government. And they will have the governments own denomination on the coin. As well it must be accepted for circulation in the country of origin.

North Marianna Islands and others also have done series of coins in proof one ounce silver.

Traditionally these coins do not increase in value. Since they are never put in circulation they should hold their purchase price. The medal collectors (separate from coin collectors) also usually purchase them whether for the designs on each coin or to complete a theme. (Birds, Fish etc…)

I must also mention companies like the Franklin Mint Company usually flood the collector market with these items. This leaves less of a secondary market for the resale value and depresses their worth.

They are best considered as art in coin Metal Form. Valued this way they may sell at the issued price plus a premium.  Check the internet listings for silver art bars or rounds.

Off hand I know Bermuda, Liberia and Marshall Islands mint and sell coins denominated in us dollars as collectables. Like Palau they do it for a profit and the natives of these nations don't spend them and they are not legal tender in the USA and not accepted for legal tender in their own country.

I'm sure there are other nations I can't think of now making these novelty coins as well.

Good Luck

Here are some listings for the So-Called-Dollars of PALAU;

http://www.wcoins.com/Palau.htm
http://shop.ebay.com/items/palau%20coins?_dmd=1&_sop=12
http://www.blackmountaincoins.com/c/BMC/PALAU-COINS/sort-price-desc/.html
http://www.wscoin.com/index.php?v=ca&id=1285&cmid=175&tid=2