| Many coin collectors only collect coins. Rounds and | | | | economic need to sell collector coins. So, Palau has |
| bars are simply not acceptable to them. So what | | | | issued a series of metallic disks that actually have |
| makes a round or bar shaped piece of metal a | | | | a denominations stamped on them. Unfortunately, |
| legitimate coin? | | | | Palau uses the currency of the United States, and |
| Generally, coins are legal tender made by, or on | | | | has no authority to issue money of its own. So, |
| behalf of, a legitimate nation, and bear a | | | | technically Palau "coins" are really just rounds. |
| denomination of that government's currency that | | | | They can be minted in precious metal, colorized |
| is legal tender. Anyone can make a round, but | | | | as many small nations' coins are, and be housed in |
| only a nation can authorize the production of a | | | | display cases. They can even be accompanied by |
| coin. This would seem to imply that if the piece of | | | | certificates of authenticity. But, while they are |
| metal has a country's name on it, and is stamped | | | | authorized by a nation, bear a denomination, and |
| with a denomination of that country's currency, it | | | | appear to be coins, they are not. Palau is not the |
| must be a coin. Unfortunately, it is much more | | | | only small entity making coin-like rounds. Others |
| complex than that. | | | | are also capitalizing on this source of income. |
| Collector coins are important to many small | | | | Now consider the Hutt River Providence of |
| countries' economies. Coins are produced for | | | | Australia. This micro-nation actually declared its |
| many small nations by major mints. The Perth | | | | independence from Australia, operates its own |
| Mint makes coins for Tuvalu and the Cook Islands. | | | | mint, and makes legitimate currency. Some coins |
| The New Zealand makes coins for a myriad of | | | | are intended to be collector coins, but unlike the |
| small nations, including some for the Cook Islands. | | | | case with Palau, these are real coins. |
| These are collector coins, often colorized, housed | | | | So, if it is a small nation, has its name on a piece |
| in cases, and accompanied by certificates of | | | | of metal, and uses a denomination, the nation |
| authenticity. A multitude of coins are made for | | | | may have authorized a legitimate coin, but not |
| each such nation, and mintages are often low to | | | | necessarily. Coin collectors who collect coins from |
| insure a high demand. This translates into high | | | | small nations of the world must do research |
| prices. Remember, the mint also makes money | | | | before accepting something that looks like a coin |
| from these coins. | | | | as an actual coin, or decide it really does not |
| But then there are places like Palau. Palau is | | | | matter to them. |
| actually a United States possession, but has the | | | | |