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 Replies: 514 / Views: 78,849 |
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Valued Member
Canada
234 Posts |
The returns could be for a number of reasons. Personally I was looking the other day to see if I could get close to a platinum plus masters club status from buying X for X that could be returned back to the bank (think I would be $1500 short right now with 8 months to go). Besides that, if it's easy enough to deposit at a bank why not buy the maximum available, since they get shipped directly to you, then you will only have to take them to the bank to get your money back and the "profit" would be any points or cash back you receive on your credit card.
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Pillar of the Community
Canada
5324 Posts |
My guess is the RCM mc program is trying to weed out the 20 for buyers, but as I said earlier, who cares nothing is remotely hot and the direction of endless release can only get worse, all dealers eventually will become Overstock and start discounting. |
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Pillar of the Community
Canada
514 Posts |
I cannot believe I read the whole thread!
I have nine of the $20 for $20 coins, and I too am willing to sit on them.
No real reason, just a hunch.
I am though spending a little more on my coins in the past, and am also taking into acount the bullion value of the coins;
I chose to stop buying the 20x20 because I felt it was better to spend $20 on an old (35-67) "silver" dollar which has a $13(?) bullion value, and could go up in either collector or bullion value, or to spend $25 on '88 olympic coins (which have a full oz of silver each), over spending $20 on a $20 face value coin with a $7(?) bullion value.
This past year I bought 1936, 1939, & 1949 silver dollars, and a full set of '88 Olympic coins.
Edited by unruhjonny
10/25/2015 12:42 am
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Pillar of the Community
United States
2408 Posts |
The 20 for 20 has 7.96g of 9999 silver - 0.25oz so it's more like $5.32 CAD compared to a silver dollar that has 23.33g of 800 silver - 0.6oz for $12.49 CAD.
From that basis, you are correct... $20 is better spent on the silver dollar. Despite what many have been saying, there is really no fundamental reason for silver price to increase dramatically in the foreseeable future. So either way we should be prepared to hold on to them for a while before making money on the silver content alone.
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Pillar of the Community
Canada
5324 Posts |
Anyone who has a bank account, you can always deposit for face value, can not compare to a bullion coin or a normal overpriced 100.00 NCLT
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Valued Member
China
171 Posts |
I have purchased every $20 for $20 as well as the $50, $100 and the $200 and I have had enough. After the look of that ghastly $100 cougar, I will be selling all of these for face value when I get back to Canada in the summer. Almost $2000 just sitting there. I will take the money and purchase an awesome Victorian 50 cent piece or something.
Edited by TomSwift
10/25/2015 9:23 pm
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Pillar of the Community
Canada
6768 Posts |
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Almost $2000 just sitting there. I will take the money and purchase an awesome Victorian 50 cent piece or something. Very smart idea. When I sell the coins that I do not enjoy anymore, I buy something for kids, as example Disney die-cast cars, while they play with them almost daily, and I just "sat" on the coins. First 20for20 and Towering Forsts $200 - these I will keep and that enough. |
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Valued Member
Canada
178 Posts |
I'm with Tom, after seeing the Cougar $100, it made me think I'm out. Too much cash tied up in something I no longer care for. I'm in Winnipeg, so I asked Gatewest if they'd take them in for trade, and they said yes. I'm going to keep the $20 for $20's I still have (I already sold some of those on ebay) but the $100 for $100's are going, maybe the $50 for $50's too. Think I'm going to get one of those $5 or $10 gold coins from 1912-1914. I don't have much gold and this is a good opportunity to change that. |
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New Member
Canada
7 Posts |
Although I realize this is a collecting, not investment, forum, it's worth noting that these coins make little sense to own financially.
Let's compare the $100 silver coin with the very poor expected performance of interest rate investments, such as bonds. If you buy a $100 bond today at a low 2% compounded rate, at the end of 10 years, you'll have about $122. That might be a bad investment relative to inflation, but let's compare it to the coin.
In ten years, the face value of the coin will be $100. If CPI remains in the 1-3% area, you'll have a negative real return of about 10-30%.
But what about the silver value? Let's assume that the silver value somehow matches the return of the 10-year bond. The $100 coin is currently currently worth $21.50 CDN in silver content. To break even with the bond, the silver price must increase nearly sixfold to reach $122, or 19% annually for every one of the next 10 years.
Assume for a second you get that, you get the sixfold increase. Now what have you got? You've got a coin worth $122 and a bond worth $122, and you could invest either one in anything going forward, including bonds or silver. Which path was the easier one to take to $122?
As a side note, I cashed in over $1000 of the $20 for $20 coins at TD a few months ago. No issues. But I spoke to the manager before attempting a straight deposit.
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Pillar of the Community
United States
2408 Posts |
@Unretired. Like many people have said: "Prediction is very difficult, especially if it's about the future." Point being, who knows? One thing we know for sure is that the stock market always outperforms bonds in the long run. Does that mean we should never invest in bonds? Of course not. There is a component of timing (and risk) to consider. Depending on where you are in your life it may be totally OK to bet on silver while protecting your capital at the same time. I think X for X does provide some protection in that regard (although the future is uncertain as far as redemption is concerned). The problem I see now is the price of silver being way down so the $20 only has about $5 in metal content. All indications are that this trend will not change anytime soon. So this certainly does not help the X for X right now. However, new technologies may eventually change that trend (or the perception of increased demand) and drive the price up. The dynamic can change rapidly. The real question is... Is it conceivable that silver may reach $100/oz. or more? It certainly did - between December 1979 and February 1980. http://www.macrotrends.net/1470/his...0-year-chartIt is perfectly reasonable to think the same can happen again... |
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Pillar of the Community
Canada
2845 Posts |
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The real question is... Is it conceivable that silver may reach $100/oz. or more? It certainly did - between December 1979 and February 1980.
When you're looking at historical pricing, it's also important to consider the past versus current demand. https://www.silverinstitute.org/sit...y/1979-1980/In my opinion the future price of silver should have little or no bearing on X for X purchases because the silver content is far too low. |
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Valued Member
Canada
402 Posts |
I'm sure its been posted earlier in the thread....I'm pretty sure $20 coins are legal tender....BUT the most a merchant is required to accept in coinage anywhere/any denominations is $20, hence the confusion.
As to the bank that refused to accept the coins...most tellers and even their help lines are terribly misinformed or ignorant. Most tellers (Customer Service Representative's) are not aware there is(was a 50 cent coin let alone a dollar coin that is not a loonie (voyageur reverse). I was just at one of the major 5 banks where the CSR called their internal help line to try to sell me some of tose coins and was told they are not allowed to resell them they have to treated as damaged currency
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Pillar of the Community
Canada
5324 Posts |
If not for a good relationship with your tellers, the bank will not return these 20 for 20 because they would lose their redemption fees.
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New Member
Canada
24 Posts |
Does anybody know whether the packaging or the capsule, has to be returned, when cashing in x for x coins at the bank?
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Pillar of the Community
Canada
4227 Posts |
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I'm sure its been posted earlier in the thread....I'm pretty sure $20 coins are legal tender....BUT the most a merchant is required to accept in coinage anywhere/any denominations is $20, hence the confusion. Not legal tender (or quasi-legal tender depending upon your glass half full or empty outlook) and a merchant is not required to take them (or any other coin). |
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Replies: 514 / Views: 78,849 |
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Posted 10/24/2015 09:39 am
