The Story of the New Zealand Mint and Nuie Coinage- Steeley

[Steeley]

The Story of the New Zealand Mint and Niue Coinage

What’s the deal with the coins out of Niue? Are these Disney, Star Wars and Star Trek coins issued by a country? Are they legal tender? Are they a scam? The interesting answer reveals a legitimate and interesting triangular business deal; it’s a “win, win, win” as some might say.

The New Zealand  Mint is a private company, not a sovereign mint, that began its operations in Auckland, New Zealand  in 1967. Their main focus in the beginning was precious metal bullion. However, in 2007 they discovered a new and popular revenue stream. They asked for permission to issue “non-circulating legal tender” for the island country of Niue and the government of Niue agreed to the arrangement. The agreement was that the New Zealand Mint could sign licensing agreements with pop culture brands like Disney and then officially issue coins of this brand as non-circulating legal tender of Niue. The corporation that own a copyright being used on a coin receives a payment for the licensing, Niue receives a part of the revenue and the New Zealand Mint has the ongoing ability to mint collectible coinage on behalf of Niue. The New Zealand Mint has successfully done this to become one of the top collectible coin makers in the world due to this advantageous partnership.

Is ‘non-circulating legal tender’ actually legal tender? Well, kind of. Banks in Niue are required to acknowledge the value on the coin. It IS legal tender in Niue and banks will give you two Niue Dollars for your collectible coin worth much more due to the oz of silver it is made of. Obviously, no one in Niue transacts with these coins and the Nuie Dollar is mostly an idea as opposed to a true currency. Nuie relies on New Zealand's currency as their legal currency. Niue collectible coins are sold only with the promise of being novelties with bullion value. The fact that they are non-circulating legal tender essentially adds to the collectible value. The Niue Dollar is pegged 1:1 to the New Zealand dollar; however, New Zealand would not recognize or accept the New Zealand Mint coins.

An interesting factoid is that the New Zealand Mint is the largest mint in New Zealand which produces coins for several pacific nations. At the same time the country of New Zealand does not have a sovereign mint and it contracts with the Canadian Mint for all its coinage.  

The New Zealand Mint's strategy to sell licensed images on coins has been successful to the point where it has decided to separate into two companies. The original company that creates precious metal bullion will continue its operations under the name of the New Zealand Mint while a spin out company called Agoro (a combo of periodic table symbol Ag and the Spanish word Oro) will continue the focused business of selling licensed collectibles on behalf of Niue and other nations.

In 2025 the effigy on the obverse of the coin will change from Queen Elizabeth II to King Charles III.

[tldr-hodl]

Great summary
Just two notes:

I can be mistaken, but I'm not aware of any current Niue coin with late Queen Elizabeth's II effigy - afaik they stopped using it since manufacturing year 2022 (even before her death) and started using Niue seal instead, which at least for me meant substancial loss of appeal - e.g. coin on the right:

https://bitcointalk.org/index.php?topic=5520425.0

And to be perfectly frank, that appeal doesn't really come back with Charles ;-)

Plus some time ago I actually wrote New Zealand Mint about the silver bitcoin coins (the basic ones, not just those colored) and it seems they are not alone in this business:

Customer Service (New Zealand Mint) <support@newzealandmint.com>
13/01/2022, 11:56 NZDT

Thank you for your enquiry.
 
We are not the manufacturer of these coins.
 
Other mints such as the Czech and Poland Mints use the Niue effigy also, which can cause confusion.

New Zealand Mint Customer Service

(My) PS: As for the Polish mint I believe they might be refering to mint21.com. I have no idea what the Czech company could be and I'd be certainly interested if anyone knows...

[Steeley]

Just two notes:

Your notes are good additions. The coins in the past two years after the Queen’s death have indeed been issued without her image on them. The coins in a recent auction Miner Jones held are good examples. Securing permission to put King Charles III must be complicated.

There are a handful of mints that have copied this strategy. Agoro, in fact, also has begun doing the same thing with Figi and other countries that I cannot remember right now.

It seems to me the success of the strategy is going to be the downfall of the strategy. As more and more players renter the market, and as more coins flood the market, the collectibles become less rare and less desirable.  

The Niue Bitcoin Coins are well made, however, they have always been confusing to me. Do I count them as physical bitcoins and are they something I want to collect? The answer is complicated.

[minerjones]

The Niue Bitcoin Coins are well made, however, they have always been confusing to me. Do I count them as physical bitcoins and are they something I want to collect? The answer is complicated.

I think a good distinction would be this:

Hologram/Address/Key = physical bitcoin coin/item

No Hologram/Address/Key = bitcoin/crypto token/item

[tldr-hodl]

Hologram/Address/Key = physical bitcoin coin/item

Agree, can't be really called a physical bitcoin imho if there's actually no real bitcoin involved, but some are still wonderful to behold

https://www.bitgild.com/1-oz-gold-bitcoin-2021

Personally once I'd like to see (and buy) a coin that is both real physical bitcoin with holo and real (non-circulating) legal tender...

[2stout]

Hologram/Address/Key = physical bitcoin coin/item

Agree, can't be really called a physical bitcoin imho if there's actually no real bitcoin involved, but some are still wonderful to behold

https://www.bitgild.com/1-oz-gold-bitcoin-2021

Personally once I'd like to see (and buy) a coin that is both real physical bitcoin with holo and real (non-circulating) legal tender...

Seems like an arrangement might need to be made with El Salvador to fast track something like this.

[tldr-hodl]

Now that's something I would sell my kidney and/or grandma (or grandma's kidney) for!!

Seems like an arrangement might need to be made with El Salvador to fast track something like this.

[Steeley]

Well said. I agree MJ

"I think a good distinction would be this:

1. Hologram/Address/Key = physical bitcoin coin/item
2. No Hologram/Address/Key = bitcoin/crypto token/item"

[tldr-hodl]

I just now realized that this piece, although not a coin, very well might be the first (and only) item that is both real physical bitcoin AND legal tender:

https://kialara.com/product/og/

I definitely might be mistaken, but I simply can't think of any other art piece/collectible that would qualify..?

EDIT: Alright, my bad, not first one: https://wiki.coin.community/Kialara_Thug_Life (I knew it existed, but didn't know it was a physical bitcoin as well)

[Steeley]

I just now realized that this piece, although not a coin, very well might be the first (and only) item that is both real physical bitcoin AND legal tender:

https://kialara.com/product/og/

I definitely might be mistaken, but I simply can't think of any other art piece/collectible that would qualify..?

EDIT: Alright, my bad, not first one: https://wiki.coin.community/Kialara_Thug_Life (I knew it existed, but didn't know it was a physical bitcoin as well)

Truly a work of art / beauty / and rebellion. Wish I had one

It will be fascinating to see if any nation state ever mints physical bitcoin. I can't imagine it would happen due to the security of private keys, but who knows. Maybe loaded with one sat? Who knows. Seems unlikely