When Is a Metal Precious? Niobium Coin Case Study

When does a metal become precious?

Niobium is a metal that was not discovered until the 19^th century and it first found commercial use in the early 20^th century. It is now considered a precious metal and mints around the world use it for numismatic offerings.

Niobium is mostly alloyed with other metals to create superalloys with enhanced strength and superconductivity. As the demand for these uses grew, so did the metal’s price. The cost of niobium began to increase rapidly in 2000, when it went up by 52%. In 2001, its value went up another 26%. By 2010 the price had increased to three times what it was in 1999. Following this demand, investing and trading in the metal began to take off. Numismatic demand soon followed when Austria issued the first niobium coin.

2003 Austria 25 Euro Tyrol Commemorative, the first niobium coin.

The Austrian Mint produced the first niobium coins for sale in 2003. The coin commemorated the 700^th anniversary of the charter granted to the town of Hall in the state of Tyrol, Austria. The coin had a blue center with 7.5 grams of niobium housed in a silver ring of nine grams. The buying public received the coin well and the Austrian mint continues the series with a new niobium coin in a different color each year.

Austria continues its successful niobium series every year.

With the success of the Austrian niobium issues, other world mints began issuing commemorative niobium coins. In 2004, Latvia produced with the bi-metallic silver-niobium "Coin of Time" commemorative. Liberia issued a series of full niobium coins with gilt devices in 2005 to commemorate the 10th anniversary of the Euro. In 2005, Sierra Leone issued a bi-metallic niobium ring with a gold center featuring Pope John Paul II. Also in 2005, Mongolia issued a bi-metallic niobium-silver coin with niobium in the shape of a snow leopard. Palau, Canada, Luxembourg and the British Virgin Islands also issued niobium coins.

Latvia, Luxembourg and Sierra Leone and other mints have all created niobium coins.

With the wide variance of colors and designs, a collector base has developed for niobium coins. Each year, Austria and other countries issue new niobium coins and they often sell out quickly.

When does a metal become precious? A metal becomes precious when people make it so.