Mini-State Euros Demanding Big Prices

For two weeks now, life for numismatists has taken a noticeable turn for the better -- assuming they have coins from Vatican City or Monaco. The deaths of John Paul II and Prince Rainier, have created a boom for coins from Europe's smallest states on online auction Web site Ebay.

Clicking onto the company's German Web site and going to the coin page, it becomes clear just how excessively the market has grown. There are more than twice as many Vatican coins up for sale as those from any other European country. Monaco ranks fourth.

"Since the death of the pope, there has been a 50 percent increase in the price of Vatican coins with John Paul's image," said editor-in-chief Wolfgang Erzinger of the German coin collector magazine, Deutsches Münzen Magazin.

Speculative bubble or just popularity?

The one million coins that the Vatican is allowed to mint annually were valuable collector items even before John Paul's death. Now, the set of all eight coins minted in 2004 is fetching prices upwards of 500 euros ($645), according to The Independent. Of course, John Paul's passing away will squeeze the supply which was minimal to begin with.

A second factor is also driving prices up, namely the unmatched popularity of John Paul II as head of the Roman Catholic Church. Christians, particularly Roman Catholics, have thrown their hat into the bidding rings, pushing prices even higher. According to Erzinger, they, unlike collectors and speculators, will hold onto the coins, thus reducing the total number on the market.

Such a sudden increase in valuation may lead the general public to believe that an artificial bubble is being created. Erzinger didn't want to speculate himself if more profits can be reaped by speculators. What he did say is that people are placing bets on it.

"It isn't clear if the 2004 minted coins are the last ones that will be circulating," he said. "The 2005 coins are ready but it is still not clear if they will be released into circulation."

Monaco not comparable, but still attractive

Just like the number of visitors to Prince Rainier's funeral on Friday paled in comparison to that of the pope's, the number of transactions for Monaco coins is lower. Yet, even here, the prices would make even the most hardened coin collector blush. For example, the starter kits in Monaco before the euro was introduced on Jan. 1, 2002, had a face value of 15.25 euros and included all eight coins.

One seller on Ebay in Germany had managed to get his hands on one of the 51,200 starter kits at that time. With one day remaining in the auction, the highest bid stood at 757,88 euros. A 4,800 percent increase.

The business for euro coins is so lucrative that Andorra, the tiny state tucked in between Spain and France, has petitioned Brussels to mint its own coins.