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 Replies: 7 / Views: 1,878 |
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Pillar of the Community
Canada
1733 Posts |
This was all sparked in my head after reading the latest posts in the NCLT forum about coin sizes and such changing. I'm getting so *bleh* about the RCM. I'm seriously questioning their cost effectiveness as an entity and without the accounting trickery in place via revenue transfers with BOC I have to think over all they lose money. Yes they make some cash on some lines of NCLT , but not much. Given the fact that coins are now basically play items backed only by BOC's word with very little intrinsic value, why not just outsource the whole thing? Make a deal with the larger facilities south of the border and call it a day. Leave the Ottawa Mint in place as a producer of bullion and NCLT and dump the rest of the lines in favour of a more cost effective and larger facility in the US. Spread the wealth around and get the Chinese to make some as well, they've proven they can counterfeit pretty much anything so why not pay them for it? Anyhow, it's just a thought. Maybe unpatriotic, but the other thread concerning capital gains taxes just ticked me off enough to think there's not much point in continuing the charade based on nationalistic feelings only. Lots of countries outsource their minting these days. |
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Valued Member
Canada
272 Posts |
I really agree with your statements about the RCM and like you I sometimes wonder if we really need it, but then I think to myself " hang on a minute" let them change the size, weight etc on coins because as a collector the more times the RCM changes the detail on a coin the more the true collector has to find and hang onto. Just think when the coin is changed the coins prior to that will one day maybe hard to find, especially if the precoins are on the recall list. Just my opinion mind, what does everyone else think. |
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Valued Member
Canada
55 Posts |
Can another mint make our coins cheaper? After all, Canada is the worlds biggest producer of nickel and other metals. Plus a foreign mint would want to make a profit ontop of the actual price of minting our coins, plus shipping etc. of vast amounts of material(bilions of cents annually) across the border. Plus the loss of local jobs would not look good to any government that says we are going to close down the Canadian Mint, and the jobs, and let another country make our coinage. Political suicide!
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Pillar of the Community
 Canada
1733 Posts |
I didn't say close it, leave the Ottawa mint, outsource the circulation coins. Can the US do it cheaper? Economy of scale says yes, numbers to be proven (I don't have them, I bet they change every time the political wind blows). I do know my 69 dimes from the USA P mint look and spend like my 69 dimes from the Ottawa mint... besides out coins are now all going to be crap plated steel including changes to the toonie and loonie... the US has been striking clad coins longer than we have.
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Moderator
 Australia
16864 Posts |
The RCM is one of the cheapest circulation coin contractors around. That's why several countries outsource to them. The US mints are working flat out making their own coinage. They haven't had the spare capacity to apply for foreign circulation coin contracts since the 1980s. Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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Pillar of the Community
Canada
1733 Posts |
I understand they push that cost effective position Sap, but I think it's a sort of accounting socialism whereby they subsidize external contracts with equipment that was already written off against their letter of understanding with the Minister of Finance for Canadian coins. I also understand they claim to be profitable, again, I don't see it (I mean, I really can't visually SEE it, they may actually turn a profit) because of the way money is handled in the triumvirate of BoC, Ministry and Mint ensures everything is clear as mud. All the auditor general can do is pick on bullion and NCLT lines and they leave circulation alone as long the security processes meet muster.
Good information on US Mints though. Canada is smaller population wise than the larger US states however, I can't see it being much of a stretch to mint a tad more. Maybe China would take the contract, who knows.
Again this is all simply financial thought, political reality is often quite different.
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Valued Member
423 Posts |
I agree. 1 cent - the RCM wants to get rid of because RCM doesn't make money on them. 5 cent would have to go if the 1 cent is gone -10th make more sense than 5th. 10 cent - 1 valid coin. 25 cent - 1 valid coin. 50 cent is only a collector coin now. 1 dollar coin - a BOC dollar bill is more accepted and has no limits placed on it unlike a coin. 2 dollar coin - see above. The RCM will soon be making two worthwhile coins... at huge expense. |
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Valued Member
Canada
276 Posts |
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1 dollar coin - a BOC dollar bill is more accepted and has no limits placed on it unlike a coin. It seems most americans really *hate* the $1 coins, but it's incredibly useful for us poor canadians - doing laundry, buying pop ... having a $1 coin makes so much more sense than having the $1 bill. |
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Replies: 7 / Views: 1,878 |
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Posted 03/21/2011 6:45 pm
