Collectable coins worth a Mint as demand for cash rapidly shrinks

The Mint is grappling with the reduced need for coins in the Australian economy while demand for commemorative currency skyrockets.

The Mint's CEO Leigh Gordon said current demand for coins is enough to keep the factory going, but he's aware that may not always be the case.

"There's an element of cash which is an inclusivity issue, there are people out there that can't bank or choose not to bank. We've got to consider the broad requirements of society," he said.

"[Bluey coins] certainly could be something by which people are trading, using for commercial activity.

"Thinking about how collectible would a coin be if people aren't using cash?"

The Mint acknowledged that the decline in circulating coin demand is "expected to continue year-on-year" in its 2022-23 annual report. The agency produced more than 333 million coins for circulation in the 2000-01 financial year; it produced just 110 million in 2022-23.

The denomination of the coins has changed, too, with one and two dollar coins taking up more of the Mint's production, according to the latest annual report.

Between 2000-01 and 2022-23 financial years, the Mint's seigniorage; revenue from coins sold, minus their production costs; decreased from about $60 million to $27 million.

So what is the future of a factory that is producing a product fast becoming more suited to a museum than a wallet?

The Mint has spent millions of dollars on the renovations to its museum and shop, with Canberra's Monarch Building Solutions awarded $5.3 million in an open tender to create an "exceptional visitor experience" for the institution's roughly 300,000 annual visitors.

Australians might be less likely to reach for pocket change, but that doesn't mean they aren't interested in coins. Demand for commemorative Mint products grew by 7 per cent in 2022-23 compared to the previous financial year, according to the agency's annual report.

Canberra's coin collectors have noticed a change too; owner of Edlin's Coins and Collectables Ed Cummings said he's seen a massive increase in customers.

Mr Cummings, who has been running his shop in Canberra City for more than 40 years, said demand for precious metal coins and unique models has exploded.

"It's really increased out of all proportions, I've had to put on extra staff," he said.

"People are buying the actual gold and silver coins at the same price or very close to the price they buy an actual gold bar or silver bar.

"A lot of people are speculators, and they're not really coin collectors. They're just trying to make money out of it."

Mr Gordon said the death of Queen Elizabeth II prompted many Australians to become more interested in coins, but it was the release of the Mint's Bluey coins that have seen demand skyrocket.

"It was a real challenge for us, we've had to work through some technology challenges to try and address [the distribution of commemorative coins]," the CEO said.

"I know it's been frustrating for our genuine collectors, it's been hard for them to meet and unfortunately, has just ended up with us disappointing some long term collectors."