As one of the smallest countries in the eurozone, Luxembourg coins are highly sought after by collectors, with items reselling for multiple times the face value.
Since the introduction of the euro, the Central Bank of Luxembourg (BCL) has issued more than 65 million €2 coins, but the material value of coins in circulation is only a fraction of their face value. A €2 piece, for example, is made of cupronickel and nickel brass. It has a material value of around 15 to 20 cents.
Speculators are driving up prices, much to the annoyance of Alain Hoffmann, responsible for numismatics at the Central Bank of Luxembourg. © Photo credit: Christophe Olinger
Coins that the BCL has minted in more precious metals are those which are sold as collector coins. These can be silver or gold or a combination with other metals such as copper, palladium or Nordic gold, a metal alloy consisting of 89% copper, 5% each of aluminium and zinc and the remaining percentage of tin.
While euro banknotes are printed in various high-security printing plants in Europe, most of Luxembourg’s collector coins are minted in the Netherlands at the Koninklijke Nederlandse Munt (Royal Dutch Mint) in Houten near Utrecht. But why does the BCL bring collector coins onto the market at all?
Luxembourg unveils new coins to commemorate change of throne
“The aim of issuing collector coins is to present Luxembourgish culture, heritage, society and life in Luxembourg through a sustainable medium,” said Alain Hoffmann, the head of numismatics – the study of money and currency – at the BCL.
To mark the 25th anniversary of the former Grand Duke Henri’s accession to the throne, for example, in June the central bank issued a coin made of one ounce of fine gold. The mintage was only 250 pieces, with a stamped face value of €250 and a selling price of €3,300.
“Currently, the gold value alone is over €3,400 per ounce,” Hoffmann said. Some buyers have already parted with their treasures acquired in June. On the secondary market for collector coins, the “Gold Henris” are currently being offered for around €4,000, an increase in value of over 20% in just five months.
A set of specially minted Luxembourg circulation coins © Photo credit: Anouk Antony
The highest price that Hoffmann knows of for a BCL coin was paid for a gold coin that was issued in 2019 in honour of the late Grand Duke Jean.
“We sold the gold coin for around €2,000 at the time, and shortly afterwards a copy was resold for around €8,000,” said Hoffmann, with the BCL attempting to clamp down on such practices.
Commemorative coins to mark Henri’s 25 years as grand duke
Due to the low mintage, Luxembourg coins are coveted by collectors. “Speculators know the prices that rare coins from Luxembourg can fetch on the secondary market,” said Hoffmann, noting that collectors buy the coins from the central bank and then offer them on the internet for many times the price.
Speculators drive up prices
Most buyers are genuine collectors from Luxembourg and neighbouring countries. However, orders are also received from other countries, Hoffmann said.
“We are currently preparing a delivery for the USA. This is currently very complicated due to the new customs formalities. But parcels have also already been sent to Brazil, Australia, Kazakhstan, Shanghai and South Korea,” he said.
It is not only speculators who are driving up prices, with the constantly rising cost of gold and silver also causing headaches for central banks.
Silver has risen in price by almost 40% since the beginning of the year, gold by 30%. The German central bank – Bundesbank – recently realised that the pure silver value of a planned €20 coin was already around €24.70 and adjusted the face value to €25. In Luxembourg, the soaring prices of precious metals are also posing a challenge for the BCL.
Four coins to mark Guillaume’s accession
To mark the change of throne, Luxembourg’s central bank is planning to issue four different coins in the coming year.
“To do justice to the significance of the event, we are planning a series of coins made from the four precious metals: Gold, silver, platinum and palladium,” Hoffmann said. The coins will weigh one ounce each and on one side will feature the portrait of the new Grand Duke Guillaume for the first time, although the design for the other side has not yet been decided. “We are giving the coin designers freedom of design,” he said.
“These will be the BCL’s first platinum and palladium coins,” Hoffmann said, although the final sale prices have not yet been determined.
“The prices of the coins are based on the price of the respective precious metal and will be determined shortly before the start of sales. The gold price is currently around €3,400 per ounce,” explained Hoffmann, adding: “We don’t want to overstretch collectors’ budgets.” Anyone wanting to buy the entire series of coins can expect to spend over €8,000.
The face value that will be stamped on the coins has already been determined: €250 for the gold coin, €100 for the platinum coin, €50 for the palladium coin and €25 for the silver coin. “The face value is very important for collectors. Without it, it would just be a medal,” said Hoffmann.
Theoretically, the €250 gold coin can be used to make purchases in shops in Luxembourg, but such a case is unheard of. “The face value reflects the significance of the occasion and not just the material value,” Hoffmann said. However, the fact that the coin is an official means of payment makes the production process considerably more complex.
Financial investment
The average age of numismatists is between 50 and 70, but younger people are also interested in coins. “Many decide to invest in precious metal coins once they have paid off their house or flat and are thinking about how they can invest their savings wisely,” Hoffmann explained.
An association for collectors and enthusiasts, the Cercle Numismatique organises a coin exchange twice a year at Casino 2000 in Mondorf for anyone interested in finding out more. “Our precious metal coins are definitely suitable as an investment,” said Hoffmann, pointing out that the investment doesn’t always have to be in a weighty gold coin.
“The first silver coin from the ‘Solar System’ series was a great success – especially with younger customers,” he said. This coin, which was minted from one ounce of fine silver and features a colourful sun design, was offered in July for €94. All 1,000 coins minted in the Netherlands were reserved before the official sales launch. “We are still receiving enquiries and could easily have sold more,” Hoffmann said.
Despite the high demand, these requests have to be turned down. “Re-coinage is out of the question – that would be an absolute no-go,” Hoffmann said.
The first 1,000 customers “would not be happy” if their investment were to lose value due to additional minting, and so anyone wishing to obtain one will have to wait until the second coin in the series with the “Saturn” motif is released next year. “Alternatively, they can look around on the secondary market, where they will be offered at a significantly higher price,” Hoffmann said.
Further commemorative coins for 2026
The longest-running coin series issued by the BCL is the “Fauna and Flora of Luxembourg”. In 2025, the motif was a deer. Next year a squirrel will adorn the coin. “Animal motifs are more popular and sought-after by collectors than plant motifs,” Hoffmann explained.
Incidentally, a coin doesn’t always have to be round, contrary to popular belief, Hoffmann said.
“The ‘Significant Buildings of Luxembourg’ series is characterised by a special minting shape. The coins are square, with two convex and two concave sides. This special shape provides a larger surface area,” he said.
This allows the architectural details of Luxembourg’s cultural heritage to be depicted in greater detail. In 2025, the Philharmonie was depicted, while next year it will be the Abbey of Clervaux.
The “Heroes of the Pandemic” commemorative coin is not yet sold out, but its value on the resale market has already increased © Photo credit: Christophe Olinger
For special occasions, the BCL commissions the minting of “ad-hoc” coins. To honour the importance of Luxembourg’s steel industry, it had a coin made of stainless steel minted in 2014, with steel so hard that the dies frequently had to be replaced.
In 2023, the bank decided to pay tribute to the medical staff who worked tirelessly during the Covid-19 pandemic with the “Heroes of the Pandemic” silver and copper coin. Although the coin is not yet sold out and is still being offered by the BCL at an issue price of €50, it is being traded online for around €70.
