ISLAMIC FINANCE

COIN MINTING
Technically speaking by: Hazrin Salim Marjan

INTRODUCTION.
old and silver market price has increased rapidly especially starting in
the year 2005 onwards. The recent development of the market price has
been able to attract most international equity and the part time metal investors to invest in the regarding area. This trend proves that fortune in
gold and silver is the better economical instrument to overcome the economic damping factor and inflations. This way is proven to be better than having the cash itself.
As in Malaysia, the gold price has increased from RM40 per gram in 2005 to its peak price of
RM200 per gram around 2010 and then rests in average around RM160 per gram since.

The gold price has experienced at least 25% y-y increments. Therefore, the trend
initiates the productions of Dirham Dinar. There are various exquisite Dinar (gold)
and Dirham (silver) designs ever invented. As the article being written, there are at
least 60 types of Dinar and Dirham produced in Malaysia being distributed to the
Malaysian households.
This article will reveal the whole process of the coin making and its anatomy. Hazrin Salim Marjan has been working in the high-speed precision stamping and he has
been making the tools and dies for the semiconductor devices for more than 10
years. Basically, coin making does not need meticulous tools and tedious crafting.
The basic technology of coin making is available and the process should be easily
managed for the national industry. The only problem available in the Malaysian industry is the incapability production of pure gold and silver in a massive volume.

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TERMINOLOGY
Coin minting is an art of producing an anatomy of a coin. There are certain terminologies used to describe each part of the coin anatomy although they are rarely used.

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General Coin Minting Process

There are two stages of coin minting production. They are the material preparation
and coin minting. The whole process of
material preparation is then followed by
several options of coin minting production.
The process is very much depends on the
volume of production per month and expected life span of the same pattern going
to be produced.
- Material Preparation Process Mapping

The raw material is melted with oxygen flame in a ceramic bowl. As the
melted material is ready, it is poured
into pre-form shaped foundry according to the requirement of the subsequent process.
In practice, the raw material is shaped
into two types, bar strip as a prerequisite material shape before it is rolled
into gold/silver strip, secondly
rounded shape coin, which is ready to
be used for coin minting purpose.

The schematic diagram illustrated below

shows the material preparation process that
acquires the raw material from purified
raw ingot or bar.

- Coin Minting
Selection of the minting production
equipment (i.e. appropriate mould, suitable punch, press machine etc.) very
much depends on the volume needed to
produce at one instant and the expected
product life span for the same pattern.

The following illustrations show several options of coin minting steps.

They are designed to cater the production capacity, product life span
and the security of production especially to manage the gold and silver
residues.

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Figure : Low speed and coin pattern with long life span

Figure : Low speed and coin pattern with short life span
Coin minting process involves various
types of tooling. The main thing to be considered before deciding on the appropriate
process for material selection and coin
minting are the forecasted quantity produced per order and the estimated product life span.
It should be understood that Dinar and Dirham have their own premium cost, detail
cost for every coin features process involved and the importance of coin standard
which will be explained in the future articles.

DISCLAIMER:
The explanation provided in the above article is a general guideline in layman
terms in order to give an overall understanding of the coin minting process.
It can never be treated as an offered service / quotation from the author to the
readers. Due to the treat confidentiality
and subdue any misleading information
concluded from any general statement
made, readers are advised to seek direct
assistance from the author himself.

HAZRIN SALIM BIN MARJAN

A Business Coach by profession and an Engineer by Training. B. Eng Mech (Hons) University of Malaya 1989. Wide
experience in High Speed Stamping and Precision Tool & Die Making for Semiconductor Industry. Presently provides
Business Coaching service for various type of Industry,
- hazriin@hotmail.com