In Switzerland, it is not unusual to keep a few gold coins among other precious objects.
Keystone / Gaetan Bally
The soaring value of gold means the minting of a new Vreneli, a popular Swiss gold coin, generated enormous interest – but the whole affair turned into an online fiasco.
In Switzerland, it’s worth taking extra care when moving house or clearing out a flat: it’s not uncommon to find a Vreneli hidden away in a drawer, a bag or even in the lining of an old coat.
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These gold coins are indeed popular. For a long time they were a fairly common gift from godparents at christenings or confirmations. They were also often a prize at bingo. In a nutshell, they’re not a rarity in Swiss households.
What’s more, they were minted en masse. The most common coin, with a face value of CHF20, was produced in 58,234,255 copies between 1897 and 1935 and then 1945 and 1949.
The obverse (heads) shows the Swiss coat of arms, the face value of the coin and the year of issue. The reverse (tails) features a young girl symbolising Switzerland, with mountains in the background and the inscription “Helvetia”. The edge is embossed with 22 stars representing the number of cantons at the time.
These CHF20 gold coins were nicknamed “Vreneli”. The origin of this nickname, which has been used since 1943, is not known. But the most commonly accepted explanation is that it is a diminutive of Verena, a female first name that was once very common in German-speaking Switzerland.
There is also a CHF10 coin nicknamed “demi-Vreneli”. These were minted only between 1911 and 1916 and in 1922. They are therefore less common than the CHF20 coins, but that doesn’t mean they are rare, as 2.6 million of them were put into circulation.
The massive issue of these coins is explained by the fact that they were used as a means of payment, before being gradually supplanted by banknotes. In Switzerland, they were accepted as an official means of payment until 1936.
When Vreneli goes head to head with Napoleon
We didn’t have to wait for the euro to see a single currency in circulation in Europe.
In 1865, France, Belgium, Switzerland and Italy created the Latin Monetary Union. Greece also joined the group in 1868.
One of the consequences of this system was that the national reference currencies minted between 1865 and 1927 had the same weight of fine gold.
This meant that coins of 20 Swiss francs (Vrenelis), 20 French francs (Napoleons), 20 Belgian francs, 20 lire or 20 drachmas had strictly the same value and could be used in the various countries of the union.
Many other countries – with the notable exception of the United Kingdom and the German Empire – joined the Latin Union. Gold coins as diverse as 20 leva (Bulgaria), 8 florins (Austria-Hungary), 20 dinars (Serbia) and 20 lei (Romania) had the same value as the Swiss Vreneli.
The Latin Union suffered from the currency disruptions caused by the First World War and was officially dissolved in 1927.
The Union’s standards also applied to silver coins. It’s interesting to note that the very last coins to be minted according to these standards were the Swiss CHF0.50, CHF1 and CHF2 until 1967. So don’t be surprised if vending machines refuse to accept them: it’s because the silver content makes them heavier than the coins issued later.
Today it’s no longer possible to buy your car or luxury watch with coins, but they haven’t lost all their usefulness. As well as being a collector’s item, gold coins are still of economic value, allowing you to diversify your assets and to have a safe haven currency that is easily transportable.
What are they worth?
Because they are so widely distributed, Vreneli coins have only “intrinsic metallic value”, i.e. they are generally only worth their weight at today’s gold price. Which is already good news, given the soaring price of gold.
To this price must be added a commission of around 5% for intermediaries. At the time of writing, a CHF20 Vreneli of a current vintage is trading at CHF528-555 ($654-688).
But as is often the case in the world of collecting, prices can soar depending on rarity. Such is the case with the “Vreneli à la mèche”. The presence of a small lock of hair on the forehead of the Verena on this test coin minted in 1897 can push its price up to CHF100,000-150,000.
This is the same price range for the “Vreneli de Gondo”. This coin, also dating from 1897, is characterised by the fact that it was produced using Swiss gold extracted from the Gondo mine in Valais. It is recognisable by the small cross stamped inside the Swiss cross and by its lighter, greenish hue due to the absence of copper in the alloy.
But don’t turn your flat upside down in the hope of finding one of these. The chances of finding such coins are slim to none, since only 12 “Vrenelis à la mèche” and 29 “Vrenelis de Gondo” were ever minted.
The chances of finding a 1925 CHF100 Vreneli are slightly higher. This prestige coin, larger than the usual ones, was issued at the request of the then Swiss President Jean-Marie Musy. Around 3,500 of these coins are estimated to still be in circulation. Their metallic value is around CHF2,500, but their rarity gives them a numismatic value of CHF15,000-20,000.
Online fiasco
To commemorate the centenary of the CHF100 Vreneli, the Swiss Federal Mint (Swissmint) made 2,500 copies of a modernised version. This reissue aroused a great deal of interest among numismatic enthusiasts – but also a great deal of frustration.
The vast majority of people will have to make do with photos to admire the new CHF100 Vreneli.
Swissmint
The 2,500 copies of the commemorative coin went on sale at CHF3,500 each in Swissmint’s online shop at 9am on July 1. But the large number of hits crashed the site almost immediately. And when the situation was restored at around midday, all the coins had been sold.
Despite these technical problems, not everyone came away from the sale empty-handed. And commemorative coins can now be found on auction sites for prices sometimes ten times the base price.
This has led to incomprehension and anger. According to the Sunday newspaper SonntagsZeitung, a collector has lodged a complaint with the Office of the Attorney General of Switzerland, accusing Swissmint of manipulating its shop for the benefit of 27 privileged dealers. Parliament’s finance delegation will also be looking into the matter. For its part, the finance ministry, which oversees Swissmint, categorically rejects the accusations.
The reissue of this prestigious coin has been somewhat spoiled by this technical glitch. One consolation, however, is that the fascination with gold still seems to have a bright future in Switzerland.
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Edited by Samuel Jaberg. Translated from French by DeepL/ts
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