When people decide to buy gold coins, an entirely new world opens up to them. There is a lot to learn and this education should take place prior to the purchase of the first coin. This will ensure that wise investment decisions are made every step of the way. Russian Gold Chervonets are one coin that should eventually be added to the collection.
Russian Chervonets (also called Chervontsy) were first introduced in the country in 1701 and production continued until 1757. Gold rubles replaced them and it was not until the year 1922 that the Soviet government re-introduced these coins. This action was part of the country’s goal to have a stable currency, in accordance with the New Economic Policy. The Chervonet bank note was issued and was the equivalent of the ten ruble gold coin of prerevolutionary times. This note was required to be backed at least 25 percent by hard currency and precious metals. Gold Chervonet coins were then issued and used primarily in foreign trade.
In 1924, Chervonets were established as the sole legal tender in the country, equal to ten rubles. They were quoted on the foreign exchanges throughout the early 1920s. Soviet currency was banned from export in 1926 and it was withdrawn from all foreign exchanges in 1930. As of that date, private exchanges that traded foreign currency for Chervonets were banned.
The coins produced in the 1700s had an alloy mixture of 0.986 and the 1920s version contained an alloy mixture of 0.900. Chervonets minted in the year 1923 are very rare and sell for more than $7,000. According to some reports, only one 1925 Gold Chervonet exists. However, a production sample 1925 copper Chervonet appeared at a Moscow auction in April 2008. This coin had a slightly modified design from the 1923 version and sold for $200,000. There are actually five known 1925 Gold Chervonets in existence and all are in Moscow. Two are at the Pushkin State Museum of Fine Arts and the remaining three are stored at the museum of Russia’s mint, the Goznak.
Prior to the 1980 Moscow Olympics, a limited quantity of Chervonets was minted for business and collection purposes. The Bank of Russia currently offers uncirculated gold Chervonets that were minted between 1975 and 1982. These have a face value of ten ruble, purity of 0.900, and are considered legal tender in Russian Federation territory.
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