RCM Cancels Face Value Program

Forgive me if this idea has been said before, but why couldn't the RCM just collude with credit card companies to say that purchases that do not pay taxes do not count as "purchases" that obtain said points? Seems like an easier solution. That said, that coin series really sucked, and the value was poor. Paying four times the spot price of .9999 fine silver is just straight robbery just to get it in a coin form with some lady's face on it.

Libertad,

No purchases of NCLTs that are pure gold or silver are taxed. If credit card points were based on whether an item was taxes or not, it would eliminate most coins. Not to mention milk and bread, etc. not being taxed.

Unfortunately, B.C. charges 7% tax on all pure gold and silver coins.

RCM charges 7% tax on B.C. purchases (except face value coins). When possible, we get around that by buying from out of province dealers.

Sorry but this is incorrect. See note 10. Actual returns in the quarter were 2.1M and this is across all lines, not just numismatics and not just x for x. The 32M extrapolation is similarly flawed.

Certainly, the redemptions are an issue for the Mint but look at the numbers. The actual returns are relatively low on presumably high margin items. They are not crying over these things.

Also, IMO an attempt to demonetize these coins would be very difficult given their sales pitch as a currency exchange. The lawyers would be lining up given the couple hundred million dollars in play.

It's more likely that declining sales (as the Mint has stated on several occasions) and limiting their exposure may have ended the program.

Keep in mind that the Mint's primary reason for the x for x program was to gain new customers. I suspect that has peaked and rather than selling those newly acquired customers more 1/4oz ag coins for $20, they would rather sell them 1/4oz ag coins for $40...or more. Either that, or the new customers did not become repeat customers in which case, the program would be seen as failing it's primary purpose.

The solution to this problem would have been simple for the Mint.

Charge a $1 redemption fee for these coins. Or simply raise the price so it's $21 for $20 coin.

That way, the Mint can have its cake (sustain sales from genuine collectors of these coins) and eat it too (getting rid of unscrupulous buying for points only)!

I agree wth others who have no regrets the Face Value program was turfed. It created far too much focus on Cashing Coin as opposed to Collecting Coin.

We don't know the reason, but as CC-Ottawa mentioned, when RCM launched it in 2011, it was to be a customer acquisition program. FIve years is long enough to measure it's success and for obvious reasons, it's outlived its purpose.

Nothing is forever.

Most likely these coins were not achieving it's goal in creating repeat sales, there is a instant and future liability with almost everyone of these coin sold if they are creating a new customer base, it's time to pack it in. The idea of smart collectors buying even if a 1000 or 2000 bucks of these types of coins to gain 10 to 20 bucks of credit card rewards is just as silly as the bungled new MC reward program. Banks routinely charge a fee to deposit coinage and bills into current accounts, they are for sure legal tenders!