You may have noticed a new R5 coin in circulation celebrating 25 years of democracy. While it may be a fresh new design, it does not have any value as a collector’s item – despite what coin stores may tell you.
Mr Pradeep Maharaj, Group Executive for Currency Management at the South African Reserve Bank has warned against fake advertising that claims that the new R5 coin will become a collectable. “There is no rarity attached to those coins. We produce millions of those coins, so they are not rare. They are only worth the face value of R5,” says Maharaj.
Each year the SA Mint does produce collectable coins which should not be confused with regular-circulation coins or commemorative-circulation coins. Collectable coins are made from precious metals. An example is the R5 Protea Nelson Mandela coin which is made from 1/10 oz of gold. The value of the coin is in the precious metal used. Depending on the number of collectable coins produced, there could also be a collector’s value. However, a return on a collectable coin could take decades, depending on how many coins were issued at the time.
This year, as part of the commemoration of our 25 years of democracy, a three-part series of collectable coins was produced by the SA Mint: a 1-ounce pure-gold R500 coin, a sterling-silver R50 coin and a bronze R50 coin.
Rarity value
The pure-gold coin with a denomination of R500 has been limited to only 125 coins and sells through the SA Mint for R33 995. This is a premium on the current gold price of R21 800 per ounce and any return on investment would require a buyer who is prepared to purchase the coin for its rarity value.
The R50 sterling-silver coin can be purchased for R995 although the price of sterling silver is R250/oz. With 10 000 coins having been minted, it would be less likely to have any value as a collectable, so buying one of these coins would not necessarily provide a return on the investment.
Not all commemorative or collectable coins are produced by the SA Mint. A coin issued by the SA Mint would have a face value or denomination. Other issuers create medallions which have no face value. For example, the South African Gold Coin Exchange in collaboration with the Nelson Mandela Foundation created gold coins depicting Robben Island that were marketed though Scoin shops. These coins are only worth their gold value ‒ the same as a Krugerrand ‒ however they were sold for several thousand rands above the metal value, leading to many disgruntled customers.
When it comes to purchasing collectable coins, be cautious of coin shops that guarantee that they will buy the coin back from you. These promises are usually only made verbally and when you try to sell your coin, you discover that only if they have a buyer will they be prepared to buy back the coin.
Before you start investing in coins, do your homework. Coin collecting is a specialised industry, and while it is an investment class that can provide significant returns, this is only on very rare and collectable coins that go back hundreds of years.
To learn more about coin collecting as an investment, contact the South African Association of Numismatic Dealers or the South African Coin Association.
This article first appeared in City Press.
I have the 1994-2019 5rand.Is it worth anything or should I just spend it.
As per the article it is only worth R5
I have a 25 years of democracy R5 coin is It worth anything or should I use it
Spend it
Hi i have those unique coin that i need to sell for investment, can I get more information about how and must i take them to
The article has the people to contact
I m having with me a coin known as Fathing,1/2 for 1962, 2 cents 1983Gra Brigatto,,and 2015 Mandela coin
try the dealers and coin association mentioned at the end of the article
i have 1954 elizabeth II three pence coin..does it amount to anything ??
Contact the experts linked in the article
Hi there
I found a defective R5 coin (2009) that obviously wasn’t printed properly. The outer silver ring is curvy/uneven. Is it worth anything?
no
Hi! I am also having some of the R5 and R2 coins and would like to know their price value all of them if possible.
they are worth R5 and R2 – exactly what they look like. So just spend them…
I want to sell my Mandela coins.so i don’t get a place to sell
Here are some sites to look at http://www.saand.co.za/
https://www.facebook.com/pages/category/Business-Service/South-Africa-Coin-Association-201897106512510/
I have the unique R5s coin exchange in Polokwane and I don’t really know how to sell them.
The only R5 worth anything are the gold coins. There is a link in the article for a FaceBook page on coin collecting
I want to learn about more about the coin collecting I have questions I want to ask because I have coins that I kept.
In the article I mention two organisations: http://www.saand.co.za/ and https://www.facebook.com/pages/category/Business-Service/South-Africa-Coin-Association-201897106512510/
I will like to know more about coin investment or coin collection. I need to know which coins are of value and for which year are those coins.
In the article I mention two organisations: http://www.saand.co.za/ and https://www.facebook.com/pages/category/Business-Service/South-Africa-Coin-Association-201897106512510/
They are good sources
I have 2018 Mandela coin
Was that the actual gold one? You can sell it for the current gold price
Hi medem or sir I need to sell my 5 Rands Mandela coins how can I do?
Was it the Protea Gold Mandela coin or the circulation coin?
As you may have understood from the article the R5 circulation coins are only worth R5 – unless you keep them for a few hundred years when they may become rare. Unfortunately it was a marketing gimmick. You can read more about it here https://mayaonmoney.co.za/2016/07/overpromise-gold-medallions/