Germany Reduces Silver Content in Commemorative Coins to Curb Speculation

The German government plans to reduce the silver content in euro commemorative coins in an effort to limit speculation.

The Ministry of Finance explained that the silver content will be lowered due to the strong volatility in precious metal prices. These changes will apply to all commemorative coins issued starting this year.

In a statement released on Monday, the ministry said the move is intended to prevent the coins from becoming a tool for speculation on precious metal price movements or from becoming impossible to issue due to budgetary constraints.

Specifically, the alloy composition of the €35 commemorative coin will be adjusted from sterling silver (925 parts per thousand silver and 75 parts per thousand copper) to 500 parts per thousand silver and 500 parts per thousand copper.

The silver content in the €50 commemorative coin will also be reduced from fine silver containing 999 parts per thousand silver to 625 parts per thousand silver. As a result, both coins will become lighter by one gram.

The German government plans to issue five commemorative coins with a face value of €35 and two coins with a face value of €50 this year, including coins honoring Margot Friedländer, marking the 125th anniversary of the Wuppertal Suspension Railway, and commemorating Christmas.