Will the Bayern Thaler Become the Long-Awaited German Bullion Coin?

An internationally recognisable design (one that is immediately associated with the issuing country), a range of denominations based on the global investment standard (the “troy ounce”), and a price as close as possible to the current spot price of the underlying metal – this is the winning formula behind Krugerrand, Maple Leaf, and similar coins. With the Vienna Philharmonic and the Britannia, Europe has proven that it does not have to be a blank spot on the bullion map.

Now, a country is entering the market that few would have expected to: the Free State of Bavaria, through the Bavarian State Ministry of Finance, has commissioned the Bavarian State Mint to issue a bullion coin. “We are experiencing strong global demand for precious metals,” says Reinhard Riffel of the Bavarian State Mint. Based in Munich, the mint produces coins for various foreign central banks and is responsible for minting the African Wildlife silver coins for Somalia. “At present, however, there is no German alternative for investors in physical precious metals,” emphasises Riffel, who initiated the bullion project and has spent the last few months trying to convince the Bundesbank, the State Ministry, and all other stakeholders to join this project.

An Investment Alternative from Germany: Gold Commemorative Coins as a Last Resort

In the absence of an actual German bullion coin, many investors have turned to the country’s 100-euro gold commemorative coins. However, these government-issued coins lack key denominations, most notably the standard one-ounce version that has become the benchmark in the precious metals market. In addition, the designs of German commemorative gold coins change annually, meaning that no recognisable brand has been established over the past 23 years. High premiums and bulky packaging such as presentation cases and certificates of authenticity – which take up unnecessary space in a safe –have further limited their appeal. As for silver, there is still no product from the German government in the bullion coin segment.

Bavaria now wants to fill this gap by introducing a German alternative. “We have chosen Neuschwanstein Castle as the motif because it is a landmark of both Bavaria and Germany, known and beloved worldwide, and associated with positive imagery,” explains Reinhard Riffel. The Bavarian State Mint hopes this will generate strong demand – not just in Germany, but also in global markets, particularly in North America and East Asia. The castle’s depiction will change annually, giving the coin a special feature that is of interest to collectors – similar to the Australian Koala, Australian Kookaburra, or Somalia Elephant series. These coins attract not only investors but also collectors, with some years now trading well above their metal value – an appealing side-effect in the form of unexpected additional returns. There is also an aesthetic element to consider, thanks to the annually changing design. “We have high expectations for the combination of a German bullion coin with highly attractive and popular motifs,” concludes Riffel.

So far, so good – but the serious numismatist has questions. How does the Free State of Bavaria intend to issue a genuine “coin” – a minted piece with official status as legal tender? Taking a detour via a third country and producing an agency-issued coin would be possible, but a Bavarian bullion coin under the flag of Côte d’Ivoire would seem rather odd, to say the least – just like having King Charles as the head of state on a Bavarian “coin”.

The Bavarian State Mint has therefore opted for a clever solution: as a fictional denomination with a historical precedent, the coin will bear the name Thaler. This establishes a cultural connection to Bavaria: as the Thaler was legal tender in various forms until the introduction of the Mark in 1871. “We are reviving the Thaler as a reinterpretation of a historical coin,” explains Reinhard Riffel. While this gives the product a nominal value, it technically remains a medal – or, to use a friendlier and more internationally recognisable term, it falls into the ever-growing category of “bullion rounds”.

But can Bavaria bring back the Thaler just like that? The simple answer is yes, as this type of coin has not been in use for centuries. Moreover, it is not a currency unit, meaning the product complies with existing coinage laws. With this approach, the Bavarian State Mint has distanced itself significantly from legal grey areas – unlike a particularly successful competitor. In 2019, the Germania Mint issued its collector’s medal Germania with a fictional denomination in Mark, causing some confusion in Germany. After all, coins from the Deutsche Mark era can still be exchanged for euros at Bundesbank branches today.

According to the Federal Ministry of Finance, Euro and Cent Are Protected – Everything Else Is Not

At the time, however, the Federal Ministry of Finance saw no need to act. In response to an enquiry from the US magazine Coin World in autumn 2018, ministry spokesman Martin Chaudhuri referred to the applicable currency regulations – these primarily concern Germany’s current legal tender, which is not the Mark but the euro.

For instance, the Regulation on the Production and Distribution of Medals and Coins for the Protection of German Euro Commemorative Coins (in German: “Verordnung über die Herstellung und den Vertrieb von Medaillen und Münzstücken zum Schutz deutscher Euro-Gedenkmünzen”) prohibits the use of the inscriptions “Euro” or “Euro Cent” as well as the euro symbol on privately issued coins. Additionally, the design must not resemble an official German euro commemorative coin in a way that could cause confusion. None of this applies to the Germania coin – and certainly not to Bavaria’s new bullion product. It is also worth noting that, despite the unusual denomination, Germania Mint experienced success with collectors. The nostalgia associated with historical currency units clearly resonates with many numismatists.

Notably, the Bavarian State Mint has structured its Bayern Thaler to closely follow a typical investment coin portfolio. The planned silver editions include two variants: a 1-ounce coin (1 Bayern Thaler) and a 1-kilogram coin (30 Bayern Thaler). In gold, the standard investment denominations will be available: 1/10 ounce (10 Bayern Thaler), 1/4 ounce (25 Bayern Thaler), 1/2 ounce (50 Bayern Thaler), 1 ounce (100 Bayern Thaler), 2 ounces (200 Bayern Thaler), and 1 kilogram (3000 Bayern Thaler). The silver coins are available for pre-order immediately and will be delivered from 2 April 2025. The gold coins are expected to be available from the third quarter of 2025. “The coins are offered as standard bullion in brilliant uncirculated quality, with a proof version available for a small premium,” explains Reinhard Riffel.

Does the Bayern Thaler Have a Chance in the Precious Metals Market?

The coins will be available directly from the Bavarian State Mint, participating savings banks and commercial banks, as well as specialist dealers. Behind the scenes, BayernLB plays a key role as a major wholesaler, while the experienced coin trading house Emporium Hamburg –where the African Wildlife Elephant was first introduced as an agency-issued coin – is among the distribution partners. The aim is to bring as many coin and precious metals dealers on board as possible.

The distribution channels will be crucial in determining whether the Bayern Thaler can become a serious competitor in the market. This is a challenge a key competitor has struggled with – despite setting out years ago to become the German Krugerrand. The Silver Quadriga, issued by the Berlin Mint, has been marketed as “Germany’s first silver investment coin” since 2009 and was originally positioned as an alternative to American Eagle, Maple Leaf, and similar coins. With an initial mintage of 500,000 coins in 2009 and an unlimited issue from 2010 onwards, it has indeed reached production volumes comparable to second-tier investment coins. However, it has yet to gain widespread recognition in international bullion markets.

Pricing: The Ultimate Dealbreaker for Any Wannabe Investment Product

The Silver Quadriga remains difficult to find in the product range of most precious metal dealers, still holding its status as a niche coin. This is partly due to insufficient market penetration but also to its pricing. In March 2025, the latest issue was set to cost around €50 –nearly €10 more than comparable one-ounce silver coins. While the 2025 design, featuring Johann Gottfried Schadow’s coin frieze, is undoubtedly attractive, the high premium is a dealbreaker for traditional silver investors, who tend to scrutinise even the smallest price differences when making their decisions.

The Bayern Thaler has a genuine opportunity to win over both collectors and investors. Reinhard Riffel of the Bavarian State Mint confirms that the one-ounce silver coin will be available in the precious metals and coin trade at a realistic price range of €39.50 to €41.50 gross, including VAT. By comparison, traditional silver bullion coins were trading at around €38 to €39 in March 2025 – excluding special offers or margin tax schemes. A premium of one to three euros is something many investors are willing to accept for an innovative product with a regional connection and a changing design. Such a markup is common for second-tier bullion products.

The Symbolic Value of the Bayern Thaler

The fact that Germany has yet to agree on a national bullion coin is regrettable and not entirely understandable. In 2020, following the release of a new €100 gold coin design, industry experts and dealers voiced criticism, questioning why there was still no “German Krugerrand”. An article of the German business newspaper Handelsblatt at the time quoted dealers who were surprised that Germany had not yet introduced its own investment coin, arguing that such a product would surely be a bestseller and generate revenue for taxpayers.

Investment coins also play a rare yet important role in attracting new collectors to numismatics, as the financial risk of buying a silver ounce for around €40 remains manageable. Despite ongoing discussions and solid arguments for a German bullion coin, the idea never moved beyond appeals – until now, with the Free State of Bavaria seemingly determined to turn words into action.

Bavaria’s entry into the bullion market is bound to spark passionate debates and critical remarks. The Bayern Thaler is unlikely to become the new number one in the precious metals world overnight, as market leadership is fiercely contested. The slow journey of the Silver Krugerrand, which was launched as an investment product in 2018, highlights just how much patience is required to establish a new bullion coin. After all, most precious metal investors, like coin collectors, stick to long-established habits and purchasing preferences.

However, one thing is clear: if past German governments have consistently overlooked the idea of a national bullion coin, it is entirely legitimate for a proud federal state with its own mint to take on the challenge. Bavaria appears to have addressed the usual hurdles from the outset – pricing is within the standard market range for investment coins, the product range aligns with industry norms, and the fictional denomination will appeal to German coin enthusiasts, while Neuschwanstein Castle is set to attract international investors.