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1 Dollar Magic Coin
| Issuer | Palau |
|---|---|
| Year | 2011 |
| Type | Non-circulating coin |
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| Obverse description | The national coat of arms of the Republic of Palau occupies the central field, featuring the traditional shield design with a native figure holding a spear and a frigate bird above, framed by a decorative border with beaded ornamentation. The scroll beneath the shield bears the legend RAINBOWS END. The circular legend REPUBLIC OF PALAU arcs around the upper periphery, and the denomination 1$ appears in the lower field below the shield. |
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| Mintage | 2011 - BU - 5,000 |
| Additional information |
Palau's "Magic Coin" series exploited a loophole common to small Pacific island nations with nominal ties to the U.S. dollar system — the legal tender designation costs the issuer almost nothing and the coins are never intended for circulation. The entire series was produced for the collector and novelty market, manufactured by overseas minting contractors and sold through telemarketing and direct-mail channels rather than through any banking infrastructure in Palau itself.
KM#408 is one of dozens of near-identical issues from this period, differentiated mainly by the embedded prismatic or holographic insert at the center.