The Future of Commemorative Coins: When Pricing Destroys Purpose

The commemorative coins are issued to honour an event, a personality, or an important chapter in history. Their purpose is not to sell silver or any other precious metal in the form of a coin. This fundamental distinction must be clearly understood by collectors, authorities, and the public alike. The true value of a commemorative coin lies in its historical, cultural, and symbolic significance, not in the weight or prevailing market price of the metal used to strike it.

For this reason, the intrinsic metal value of a commemorative coin should ideally remain limited, preferably around 30 to 40 percent of its issue price. Maintaining such a balance ensures that, even over the years, fluctuations in metal prices do not cause the intrinsic value to exceed the issue price or face value. When the metal value rises disproportionately, the coin risks being perceived merely as bullion rather than as an object of remembrance.

When precious metal prices surge, coins with high intrinsic value often become targets for melting. This was evident during the recent rise in silver prices, when it was rumoured that a few dealers cleared non-moving or corroded coins by melting them. Such practices completely defeat the purpose of commemorative coinage. Once melted, a coin intended to preserve history is lost forever, along with the message and memory it was meant to carry forward. These losses are not merely numismatic but cultural, depriving future generations of tangible historical artifacts.

Therefore, careful consideration must be given to the choice of metal and pricing strategy when issuing commemorative coins. The focus should remain on commemoration and education, not on investment potential driven by volatile metal markets. Allowing metal value to dominate shifts attention away from collectors and numismatists, while attracting opportunists and dealers motivated by short-term financial gains.

An effective alternative is the issuance of commemorative coins in base metals. Many countries have successfully adopted this approach, ensuring wider accessibility and long-term preservation. Although the Government of India issued a few base metal commemorative themes from late 2025, these were  not extended across all themes. Base metal commemoratives significantly reduce the risk of melting, keep costs reasonable, and allow design, theme, and historical narrative to remain the central focus.

Precious metal commemoratives themes may still be issued selectively, but only with strict control over metal content and transparent pricing. At present, the India Government Mint appears to be referring to MCX rates for pricing without clearly stating this on its official website or explicitly mentioning it in the terms and conditions. Moreover, frequent and sudden price revisions—even for base metal themes—without clear disclosure of the underlying calculation raise serious concerns. Such practices inevitably lead to collector dissatisfaction and erosion of trust.

In essence, commemorative coins are not commodities but carriers of history. Their worth should be measured by the stories they preserve, not by the metal they contain. By keeping intrinsic value proportionate or opting for base metal issues, mints must safeguard the true purpose of commemorative coinage and ensure that these coins continue to serve as lasting symbols of heritage, rather than being reduced to sources of scrap metal. Avoiding opaque and inconsistent practices is essential to prevent uncertainty among collectors who purchase in good faith based on the listed price at the time of order.