| Author |
 Replies: 47 / Views: 6,692 |
|
|
|
Pillar of the Community
Canada
5324 Posts |
The average Joe, has very little chance of making any profits on hot NCLT coins due to the fact the 4 or 5 coins each year are hard to get or limits of 1 or 2. Meanwhile the RCM has a broken marketing system, the dealers get 10 to 30% discounts on these coins, when the coin is a dud, they discount heavily and destroy the aftermarket. Again how does the RCM in the last few years only profit about 1.5% and most of the profits were in the ETF and bullion division. The overhead at the RCM must be tremendous, they should rethink their marketing program. |
|
Pillar of the Community
Canada
1700 Posts |
I don't really buy RCM products, unless I'm only paying 70% of the price of issue on the coin I really want. If you just keep on buying their products, at some point you're going to have a hard time getting rid of the coins without losing a good half of what you paid. Sometimes the guessing game does work. In 2012, when the old loonies and toonies were being phased out, I bought an uncirculated set. Ridiculous price back then, but now it's selling at 2x the price of issue. No matter what, don't rely on this type of guessing as a way of investment, because the risk is way too high. |
|
Pillar of the Community
New Zealand
526 Posts |
There is definitely one person who can always make money on these issues - the thief.
And they do get stolen. I recently received a $1 Aussie coin in coffee shop change that was and is still only available as a AUD$15 carded item. In this case the thief was obviously a dim-wit
And unfortunately the coin has now been ruined by circulation.
|
|
Great Collections Representative
United States
33 Posts |
When I see what Mints around the world charge for new issues, I really don't think they make a lot of money. Take a $20 face value coin. Lets say they charge $40 for it retail. For all the marketing expenses (design, box, capsule etc.), then the cost to mint the coin, the staff processing the orders etc. I don't think they make money on these, even if they sell a large quantity.
- Ian
|
|
Pillar of the Community
Canada
1700 Posts |
@greatcollections, Yes, I understand that there is a number of staff members processing the orders, but we're talking about RCM here. I'm pretty sure they already spent lots of money on robots that answer emails (with bad English grammar). I mean, if they had spent more money on hiring real humans who provide better customer service, at least I'd be a bit more satisfied. |
|
Pillar of the Community
Canada
2019 Posts |
Quote:
When I see what Mints around the world charge for new issues, I really don't think they make a lot of money. Take a $20 face value coin. Lets say they charge $40 for it retail. For all the marketing expenses (design, box, capsule etc.), then the cost to mint the coin, the staff processing the orders etc. I don't think they make money on these, even if they sell a large quantity.
Ummm well seeing the price of silver/gold has been dropping for the last few years and the mints prices have not dropped at all but have gone up some, I don't follow that reasoning. Just going to do one $99 1 oz silver coin with a mintage of 7500 as an example: Say it did cost them $25 for the silver which I don't believe it did but I guess it depends on when they bought it ,anyways, that's $187,500 of cost just for the silver appox. That leaves 74.99 profit to pay the salaries etc etc, so that's $562,425 just from one coin if all 7500 were sold. So now how many other coins does the Mint produce in the run of a year? Not inc bullion because that's their main cash cow. I just don't see where they are "not" making alot of money. Good post though Greatcoins, I am not dissing you at all its actually good to have these discussions. Plus I could be wrong anyways , never did well with math in school.  |
|
Pillar of the Community
United States
3789 Posts |
I subscribe to the "buy high to sell higher" belief. It works, I do it all the time. I have observed coin prices for a while now, the winners, or the "hot coins", once they carry over to ebay, THOSE are the coins you stalk and want to buy high to sell higher later on. In this manner, who CARES if you miss the mints sale.. you have a big part of your job done IF you are speculating on coins in terms of wanting to know whats hot and running higher. Take a coin early as its flipping on ebay and flip it later or buy and hold. Why do I say this? Because the coins that been hot stay hot. Yes all coins have been dinged by the drop in PMs. but its been very soft and not tough on the wanted coins because the buyers and stalkers snatch up the sales, thereby putting a floor on the coins. I would LOVE to speculate for fun on coins like this, alas I only have so much time to speculate with work. But I do know whats going on and whats true because I am STALKING and observing price auctions on ebay in my spare time as part of my enjoyment of coin collecting. This is the bottomline- you are going to need to be patient, keep diligent records and record and tally the data on a day by day basis.. but I see the rewards being not too shabby for those who put in the sweaty equity, the elbow grease, the effort,, you get the point. I would do it but I dont have the time PLUS I am stalking the coins I want and believe me, being patient, building a data base, charting the prices and keeping the data has helped me get some great deals here. Its such a rewarding feeling knowing I got a fair market price, that my patience has rewarded and that I am not paying full price on a coin that wasnt running higher. GOD I LOVE a DEAL! :D lets face it, this is a AWESOME time to be into coin collecting IF you know what you are doing AND take the time and do your homework now get out there and GET SOME GOOD DEALS PEOPLE! lol :D |
|
Pillar of the Community
United States
3789 Posts |
I would take a wild wild wild assumption here.. and make it to be reality, so if I dont make sense, feel free to tell me I am wrong, tell me I am off my nut, etc but look-
I really feel many coins when they are minted. the profit margins got to be out of this world. Now yes, I know you are probably going to look at me all crazy eyed... and ok thats fine.
FIRST, I want to say this. I am CERTAIN that mints all over, when they purchase silver for their coins, and even gold.., they are buying BELOW even spot price for starters.
I am certain of this because of how miners structure their projects and how they handle costs. Many have hedges in place that protect them... in fact these hedges make them profitable as prices run LOWER in terms of spot price. I also would say world mints get great price breaks in advance from miners and suppliers of silver and gold...
the second thing is- all these clam shells, COA's, cases, boxes, coin cases, etc... its costing them mere pennies on the dollar. It doesn't cost them almost NADA to do it.
Finally,, their production costs for making coins, have to be almost the same from coin to coin....
thats my thoughts...
|
|
Pillar of the Community
Canada
3690 Posts |
I have posted this before in detail but the notion that the Mint makes "a lot of money" selling NCLT doesn't hold up unless you believe they lose money on their other business lines.
|
|
Pillar of the Community
United States
3789 Posts |
has anyone asked the RCM or looked up and found how they handle their purchases of silver and gold? |
|
Pillar of the Community
Canada
2019 Posts |
Well they made $3.3 billion revenue in 2013 but only had a $180 million profit, and then after tax profit of $32 million, seems like there is a leak in the ship somewhere. But like I said I am no math wiz so eh.
|
|
Pillar of the Community
Canada
2124 Posts |
Apparently, Mints do a lot of revenues (sales) but they have more than 90% in operation costs (providers, administration, etc).
|
|
Pillar of the Community
Canada
2984 Posts |
Quote:
Possible to make money and on other items, which can be sold $5-$10 above issue, but here be prepared for hard work, basically it already close to being dealer It is impossible to sell a coin $5 or $10 above issue and make money if you are an average guy with no ebay store since the fees from eBay/Paypal are around 13%. The problem is even more acute for people living in PST provinces like BC which has 7% PST on all silver coins. So you have to sell a coin 20% above issue price just to break even if you live in BC. Edited by MoneyPenney
12/01/2014 12:23 am
|
|
Valued Member
 Canada
491 Posts |
Any business the more you sell the deeper discount the suppler will give to you, I believe that some of the Coin Store who move a lot RCM product are getting it cheaper then what the Mint is selling it on their website. Or what the general public can it at and because of that a dealer can sell a RCM item cheaper then the set price. I worked in a automotive parts place,each garage had a different discount depending on the amount they bought from us and the bill gave you an idea what you should sell the part for to the garage. Not to many people will sell something at below cost of what they bought it for does not make good business to lose money, the doors will not stay open for long doing that |
|
Pillar of the Community
Canada
6768 Posts |
Quote:t is impossible to sell a coin $5 or $10 above issue and make money if you are an average guy with no ebay store since the fees from eBay/Paypal are around 13% Sorry, I mean "With profit of $5-$10 per single coin". But since profit of $10 is not called "to make money", even if you sold a circulation penny, you need to have a huge sales (big quantity of items) with such profit, means to work hard. |
| |
Replies: 47 / Views: 6,692 |
First Page
Previous Page
Posted 11/30/2014 2:16 pm
