Improve Your Seigniorage With
The coinage industry, like most industries, places a high priority on cost-savings. Mints and Central Banks are constantly exploring coinage options that will help save money without compromising security. ZincSecure is an excellent choice that fits these requirements and bring about seigniorage value to the monetary bodies.
ZincSecure provides cost advantages that makes it desirable for use as a mid to high denomination coin. Zinc exhibits its cost effectiveness in the following ways:
- Zinc metal price is lower than copper and nickel
- Density of zinc is lower than traditionally used materials like high priced solid alloys. More zinc coins can be provided per kilogram than other high density materials. This creates a direct cost-saving opportunity for transportation and handling costs
- ZincSecure is easily formable material. The die-life for zinc-based coins is found to be much greater than for higher cost alloys / plated steel coins. The ratio of die cost savings/ coins for zinc coins would be much higher than the ratio for steel coins. The press load requirement for zinc coins is lower than other materials, which contributes to higher die life and less machine wear
- There is reduced production scrap from zinc coin production than from production of other materials. In a U.S. study, the scrap rate for the coined CPZ 1-cent coin was 1.3% vs. 6-10% for other materials.1 The scrap value for zinc is also much higher than that of steel based coins
- It is relatively easier to recycle scrapped/reclaimed zinc material
Cost-Savings Over The Life Of ZincSecure
Mints and Central Banks will experience significant cost savings upon conversion of banknotes to ZincSecure coins. A coin typically has a life of 20-25 years while a well-circulated banknote usually has a life of 1-1.5 years. The security of ZincSecure combined with the lower cost compared to commonly used solid alloys, makes ZincSecure the perfect option. A comparative study (see Figure 1) was conducted to compare the costs of ZincSecure coins, CuproNickel alloy coins and bank notes. The cost to maintain 1 billion 5g coins (life-time of 20 years) and 1 billion bank notes (worth $30M) (15 cycles for 20-year period) was found to be $80.1M, $125.2M and $450M respectively. The results strengthen ZincSecure’s cost effectiveness and gives an opportunity to re-evaluate the note-coin boundary.
Figure 1: Cost of ZincSecure Coins vs. Cupro-Nickel Alloy and Bank Notes2
The introduction of the polymer substrate significantly increased the life of banknotes when compared with paper notes, yet it still falls significantly short in comparison to ZincSecure coins.
Figure 2: Life Cycle Assessment of Banknotes3
Figure 3: Cost per 1,000 Banknotes and ZincSecure Coins
1. United States Mint – Department of the Treasury, 2012 Biennial Report to the Congress on the Current Status of Coin Production Costs and Analysis of Alternative Content, December 2012, Appendix 2: CTC Alternative Metals Study, pg 77,78 and 305. Quotes from the U.S. Mint and CTC report are for test reporting purposes only and should not be considered an endorsement for this or any other product. This report includes an analysis of various alternative metals including two zinc-based products. References to zinc-based products address findings associated with the zinc substrates and not necessarily the type of plating
2. ARTAZN™ Plated Zinc Materials Enhanced Security Proven Technologies. The Coin Conference. Madrid, Spain. October 22 2015. Presentation.
3. Bank of Canada (LCA of Polymer notes), deutsche Bundesbank, Reserve Bank of Australia, Swiss Banknote (LCA), Bank of England