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<p>[QUOTE=&quot;mlov43, post: 3453800, member: 16729&quot;]I have been studying this set!</p><p><br /></p><p>Olympics coins were a <u>major source of Olympics funding</u> in the twenty-year period 1970~1990.&nbsp; They&#039;ve been replaced as the major funding source by the plethora of other, better selling, merchandizing articles, and by royalties, sponsoring and television broadcast rights.</p><p><br /></p><p>However, in the 1970s and 1980s, Olympics commemoratives were king!</p><p><br /></p><p>These Munich Olympics coins funded the 1972 Olympics through seigniorage funding.</p><p><br /></p><p>Let me explain:&nbsp; In my examination of the different funding sources from the sale of Olympic coins, two common schemes emerged:&nbsp; <b>Seigniorage funding</b> and <b>surcharge funding</b>.&nbsp; The West German government opted for seigniorage funding when it subsidized the 1972 Munich Olympics by selling its Olympic coins at their face values and renouncing the seigniorage (the face value minus minting and other costs), which was utilized to fund various Olympics and post-Olympics expenses.&nbsp; Essentially, it was a government subsidy of the Olympics.</p><p><br /></p><p>On the other hand, the 1976 Montreal Olympics coin programme funded its Games via $24 million that it gained in surcharge sales.&nbsp; Surcharges are a sort of sales premium added to the face value of the coins when they are sold.&nbsp; As for the seigniorage, the Canadian government retained its $100 million in seigniorage from this sizable Olympic coin issue.&nbsp; During debates in the United States congress over the marketing scheme of the 1984 LA Olympics coins, the private marketers who sold the 1976 Montreal coins argued that the Canadian government <u>actually used the seigniorage in addition to the surcharges</u> to fund the Olympics, but other disagreed.&nbsp; I still don&#039;t know who is right about that.&nbsp; Perhaps a Canadian numismatist here can help?</p><p><br /></p><p>I also learned:</p><p>Because people generally collect these and don&#039;t spend/redeem them as money, there is some confidence that the government will not increase the M1 money supply (cash) by issuing Olympics commemorative coins.&nbsp; The silver and gold content of the coins vis-a-vis the coins&#039; denominations generally takes care of that little problem...[/QUOTE]</p><p><br /></p>

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