New Zealand will release commemorative Hobbit coins worth thousands of kiwi dollars ahead of next month's premier.

Bilbo Baggins and Gandalf the wizard will feature on the coins that will mark the opening of Peter Jackson's latest movie of the Tolkein epic.

The New Zealand Post said that although they will be legal tender their face value will be only a fraction of the cost collectors will be expected to pay.

The most expensive, made from 28.3 grams of pure gold, will cost NZ$3,695 (£1,890) but boast a face value of just NZ$10, while the cheapest is a NZ$1 coin retailing for NZ$29.90 (£24).

The coins go on sale from November 1 with the first of the three Hobbit movies launching in Wellington on November 28.