Economy of The Falkland Islands - Philately and Numismatics

Philately and Numismatics

In October 1877, the Secretary of State of the Colonial Office, the Earl of Carnarvon began the process of application for the Falkland Islands to join the General Postal Union (renamed Universal Postal Union in 1879). The first stamps, 1d, 6d, and 1 shilling values featuring the usual profile of Queen Victoria, were issued 19 June 1878. Since then the islands have issued their own stamps, which are a source of revenue from overseas collectors. Between 2000 and 2008, the islands issued between six and eight sets of commemorative stamps. The workload placed on the Falkland Islands Post Office by overseas collectors led to the establishments in 1978 of the Falkland Islands Philatelic Bureau. The Bureau also handles philately-related sales on behalf of the governments of Government of South Georgia and South Sandwich Islands and of the British Antarctic Territory.

Coins and banknotes may only be issued by the Falkland Islands Government with the authorisation of the British Government. Coins for local use were first struck in 1974 and are the same size as the corresponding British coins. There is a flourishing business in the issue of commemorative coins struck on behalf of the Falkland Island Government for collectors - in particular the 2007 series of coins that commemorated the 25th anniversary of the liberation of islands attracted much attention. The Falkland Islands Government (FIG) is required to deposit 110% of the face value of any coins struck on its behalf into its currency fund, thereby effectively backing the Falkland pound with the pound sterling. In the case of commemorative coins that are unlikely to be redeemed, this money represents a long-term investment. In many cases the set-up and production costs are carried by the mint concerned, who pay the FIG a royalty on coins that it sells to collectors.