Vatican City has issued Sede Vacante or “vacant seat” coins between the death of one pope and the election of his successor since 1370. Since these coins are issued in limited numbers for only a short period of time collectors have always had an interest in them. Since Vatican City changed from lira denominated coins to the euro there has been even keener interest in all Vatican City coinage among collectors of European Union euro coinage. Vatican City is one of three city-states (The other two are Monaco and San Marino.) that had previously tied its coinage to that of an EU member (France for Monaco, and Italy for San Marino and Vatican City), then adopted the euro at the same time its host country joined the EU currency union. Each of these three city-states issues very limited numbers of euro coins annually, making all their euro coins desirable to collectors. Vatican City Sede Vacante euro coins were issued in the interim period between the death of Pope John Paul II on April 2, 2005 and the election of Pope Benedict XVI on April 19, 2005. During this period the emblem of the Apostolic Chamber and the heraldry of the cardinal chamberlain, who is the camerlengo or acting head of state, appear on the coins rather than a depiction of the current pope. This was the first Sede Vacante euro coinage and as such it was suggested by the European Commission to be an excuse for the Vatican to make a quick profit from their sale. The EU didn’t appear to object to the profit motive as much as it objected to the concept these were coins – yes, but were they money – no. Virtually none of the Sede Vacante euro coins circulated. All were quickly sold as sets to collectors. Some of these sets have reportedly sold later in the secondary markets for about $600 per set. According to one recent report, less than one percent of all euro coinage is sold above its face value in collector coin sets. Under the current agreement between the Vatican and the EU the Vatican can issue a maximum of 1.074 million euro-denominated coins per year. Earlier in 2009 the European Commission noted the Vatican “issues virtually all its circulation coins in collectors’ sets.” The EC has since asked the European Central Bank for advice regarding renegotiating the agreement between the EU and the Vatican. According to a Dec. 1 Reuters news service report the ECB stated, “Ëuro circulation coins are primarily a payment instrument: they should circulate freely in the market and be used for payments. Circulation coins absorbed by coin collectors do not serve their original purpose but are exclusively used as collectors’ items,” adding that the EC “recently released its recommendation saying the Vatican should circulate at least 51 percent of the coins it issues and suggests a joint committee to ensure this and other agreements between Brussels and the Holy See are actually implemented.” According to the Reuters report, “The commission report … suggests the Vatican’s quota for issuing coins annually could be almost double to 2,100,000 euros. If that happens it [Vatican City] could continue to issue almost as many collectors’ sets and still circulate over a million euros in coins. Tourists might even get some in change at the [Vatican City] souvenir shop.” The same commission report indicates the Vatican will be able to issue Sede Vacante coins in the future, coins that Reuters described as “instant rarities.” In one sense all Vatican euro coins are instant rarities. A complete set for any year has a face value of 3.88 euro, but sell as a set in the souvenir shop on the far side of St. Peter’s Square for 30 euro per set or about $45. In the secondary collector market some of these sets have been offered recently on the Internet for as much as 100 euros.Source: numismaster.com
