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 Replies: 87 / Views: 11,807 |
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Pillar of the Community
 Canada
5404 Posts |
Kaboom ! The RCM needs to be stopped! |
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Pillar of the Community
Canada
1581 Posts |
Ratchet affect.
Precious metal prices went up, they justified raising prices because of that, despite never coming close to BV.
Precious metal prices plummet, and all they can think of is their revenue numbers and so can't even fathom lowering prices.
Heads will roll when the wall/cliff is reached. They are killing their business while thinking they are growing it.
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Pillar of the Community
Canada
1751 Posts |
The worst part is as silver prices fall, the RCM keeps creeping the prices upward. We see 1 Oz at $99/ $104/$114/$139/,$149, it's absolute madness. There's many nice coins I'd like to add to my collection, however, I either cannot afford, or cannot justify the price. Many times it's both reasons, the mint should be the lowest priced placed to buy new releases, not dealer discounts. There's something wrong with this picture. They never have sales. A smart shopper watches for dealer sales or else on ebay. Sometimes it feels like another sneaky way the government taxes us, without our knowing or protesting it. We pay the exhorbitant prices with little complaint too them. |
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Pillar of the Community
Canada
2124 Posts |
There is NO way RCM will reduce prices if they are doing huge profit and selling out many releases. |
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Pillar of the Community
Canada
5324 Posts |
The RCM does not make large profits, the last two mint reports, they show about 1 5% profit. The large RCM dealers seems to make most of the returns on these NCLT coins, and accordingly most of the profits were made in the bullion and etf, division. The meager 1.5 % is really nothing for a crown corporation that operates as a legal monopoly. |
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Pillar of the Community
Canada
2124 Posts |
According to the web site: "The Royal Canadian Mint celebrates the achievements of another remarkable year with $3.4 billion in revenues and pre-tax profits of $48 million in 2013, the Corporation's highest revenue in its history. The year was marked by diversification in all business lines, and success in new markets and new areas of growth. " |
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CCF Master Historian of USA Commemoratives
United States
12307 Posts |
Quote:
$3.4 billion in revenues and pre-tax profits of $48 million Which translates to a pre-tax profit of 1.4% - not very much! Collecting history one coin or medal at a time! (c) commems. All rights reserved.
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Pillar of the Community
Canada
3690 Posts |
And check out how much of that 3.4B revenue comes from NCLT sales - it's 167M or roughly 5%.
It's really an insignificant side business for the Mint. There is much more to producing NCLT than PM inputs and frankly, I'd bet they spend more on marketing than they do on PM for that product line.
IMO, expecting NCLT offering to trend along spot rates is probably unrealistic.
Edited by CC-Ottawa
11/09/2014 01:17 am
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Pillar of the Community
United States
2408 Posts |
Don't ask me why but I ordered this one.  |
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Pillar of the Community
Canada
2124 Posts |
My point is: If RCM start decreasing prices and release less items per month, are they going to make more profit? I think the answer is not. |
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Pillar of the Community
Canada
5324 Posts |
If bullion value for silver 1 oz. coin is 25.00 and production cost 20.00 or so and selling msrp is 100.00 how does the RCM last few years profit at around 1.5%? They allow the large RCM dealers 30% discounts on these NCLT coins, that's 30.00 profit for the average coin. The RCM must have tremendous overhead cost in their operations that are eventually past on to the end collector. |
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Pillar of the Community
Canada
3690 Posts |
Would fewer release and lower prices mean high or lower profits? I don't think that anyone here can answer that. Amongst other factors, it depends on the cost input of those coins. At best, we can say that few coins at lower prices would result in less revenue.
The problem is that none of us know how much or even if NCLT makes a profit. The Mint have never (that I know of) published profitability by business line. For that matter, there isn't even anything to suggest that they even care about profitability by product line. All of their laudable proclamations are about revenue growth.
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Pillar of the Community
 Canada
2360 Posts |
I think it is obvious that the problem is too many coins, too many versions, too many mintages, too many commissions. The Post Offices are full (cultivate a good relationship with your local postal employees they can discount coins), many of the so called hot coins are available all over the place, Big Loonie, Big Quarter, Gold Superman coming down, the flippers buy everything they can get their hands on and cause a false market, with demand temporarily heightened at release, then there is a massive sell off, they flood the market until the prices stabilize. Those institutional sales undercut any other coins on the market, Silvertowne, CA. Price of silver is diving and people are realizing exactly that a 1 ounce bullion coin for ~$20 can look very pretty if you squint your eyes, rather than the replica proof version for $89.95 or the F15. Again buy what you want to keep, what you enjoy. Hopefully the mint will realize that making that many coins is counterproductive.
And Canadian Coins it is a neat geometric pattern on the inner part of the high relief Holiday Coin, not too keen on the colouring, unless it is bad lighting, bet it looks good in hand.
Edited by SilverDon
11/09/2014 10:09 pm
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Pillar of the Community
Canada
2360 Posts |
Sorry Canadian Coins, on second look, that coin has colours misalligned on the field, see the red diamond shape between DOLLARS and 2014, the colour pattern doesn't match the shape that it is covering, there is an offset there that doesn't look good at all. Sorry but this is a coin that I would not buy and I think was made poorly. For the money you paid you should receive a coin that has colour applied correctly. Looks like a sticker that was put on with a shaky hand and would not look good in hand. Please excuse my previous comment, too late on a Sunday night.
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Pillar of the Community
Canada
6768 Posts |
I've seen this coin in the PO.
The "star" is nicely done, the colorization distracts me.
Btw, the Venetian Glass Snowman was there for issue....
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Replies: 87 / Views: 11,807 |
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Posted 11/08/2014 12:21 pm
