| Author |
 Replies: 22 / Views: 4,261 |
Page 2 of 2
|
|
|
|
Rest in Peace
Canada
1360 Posts |
think of it this way: For the $100 coin, if the dollar is devalued significantly.... you still have an ounce of silver. So, if the dollar drops to 1/5 of it's buying power, but the cost of silver escalates to 5 x what it is today - you break even
Now, at $2/loaf of bread $100 buys you 50 loaves
future - Bread costs $10/loaf, $100 buys you 10 loaves.
Silver 1 ounce $20 - 10 loaves of bread (Now)
Future 1 ounce $100 - Still 10 loaves of bread at $10
So, yes, you're better off investing in bullion, but still Coin Collecting is a hobby more than an investment.
If silver escalates faster than inflation.... even more loaves.
(for more fun, you can substitute draft beers, or shots of whisky...or whatever.)
|
|
New Member
Canada
26 Posts |
The way I see it is that this is a hobby. At the very least, you're getting a coin that's equivalent to having a $20 bill or a $100 bill kept at home/wallet. So yes, it is subject to risk of inflation especially if you decide to cash it in at face value opposed to reselling it. The fact that they sell for small premiums factor both collection value and time value of holding the coin - but the time value probably minimal since people aren't really collecting these as investments (and each individual coin is of relatively small face value).
However, if your objective is to earn a rate of return over the inflation rate, it should be noted that is not the primary objective of coin collecting.
But regardless, pretty much all non-investment grade assets are subject to inflation risk.
|
|
Pillar of the Community
Canada
2124 Posts |
If you deposit the same amount in a bank saving account you also have to deal with the inflation.
|
|
Pillar of the Community
 Canada
1700 Posts |
I see the point about hobby. However, I only find it valid when the coins are artistically attracting. RCM is therefore veery mart for putting the good images in the 100 coins instead of the 20 ones. It would then be up to us to interpret whether the 100 coins will hold their values with their good artistic characteristics. |
|
Pillar of the Community
United States
2408 Posts |
IMO some of the $20 for $20 and $100 for $100 have pretty good artistic qualities. Considering modern NCLT's erratic themes, denominations, shapes, compositions and sizes I'd bet $20 for $20 are likely to remain popular and even gain in popularity if the RCM maintains the series alive. |
|
Valued Member
United States
157 Posts |
 and if nothing else, in 20 years they still sell at a slight premium, you're ahead. I personally think the 20 for 20 will remain popular as the 100 for 100 can be intimidating when having to fork out cash to get a couple. |
|
Pillar of the Community
Canada
815 Posts |
They are at least as vulnerable as a $20 bill, and perhaps more, if we don't allow the supposition that the market will always value these at $20 minimum each, since we all know the face value means essentially nothing.
I think if you are buying Mint products as an investment in the first place, your strategy has gone astray. If you want tangible investment, bullion is safer, Government backed even better. Because UNLIKE Mint Products, a Silver Maple or Silver Eagle HAS to be accepted for face value by ANYONE.
|
|
Rest in Peace
Canada
1360 Posts |
so... Why 'invest' in US Eagles - or Aussie Kangaroos ...they are only 'FV' $1.00 while the SML's are $5.00 but they all cost pretty much the same - spot plus on an ounce of silver.
And no... once again, they do not HAVE to be accepted by anyone. But you'd be a fool to turn them down, if they are being offered for service or goods at face value. The respective governments have backed them to their face value, and that dollar value - is legal tender, but nobody 'has' to accept them.
The purpose of investing in bullion is a lack of faith in fiat currency of all sorts. Bullion, be it silver, gold, platinum, palladium, or even copper, will continue to have an intrinsic value based on industrial needs world wide. Paper money will face inflation, exchange rate fluctuations, or even fire, but your bullion's value will remain. Whether it be in rounds, bars, or bricks, it'll hold it's value.
Be it NCLT or SML's, they are all 'Mint Products'. Your logic defies me Anjohl.
|
|
Pillar of the Community
Canada
2984 Posts |
Quote:^ They're made of silver and are now selling for $25-$35 on ebay. The only one that sell for $30+ is the first $20 for $20. The rest you are lucky to break even. Even if you sell at $25, after ebay fees of 13%, you will end up with $21.75. Buy only if you like the coins, the investment potential is zero due to one huge fact: high mintage of 225,000. BTW, silver content is 7.96 g per coin or .28 oz of silver. Given the price of one oz of silver is around $22, there is around $6 of silver in the coins. The price of silver has to triple+ to get back $20. Edited by MoneyPenney
02/25/2014 12:23 am
|
|
Pillar of the Community
Canada
1700 Posts |
Does anyone know why the first coin of the series became so expensive in trend?
|
|
Pillar of the Community
Canada
6768 Posts |
Quote:
Does anyone know why the first coin of the series became so expensive in trend? In my opinion, the first coin (as well as all series) was innovative, not expensive item, but the awareness of the wide public was very low upon release. And only later, probably when the second / third coins issued, literally everyone were aware about this series, and by starting to search for the first-second coins, significantly raised demand, which lead to raise in price. And since the mintage for each and every coin is very high, everyone who was interested in the next items, had no issue to buy it for issue price - $20 from the Mint, $25 (sealed) from CP or dealers. |
|
Pillar of the Community
Canada
815 Posts |
Dcadon, a Silver Maple is guaranteed by the Government of Canada, and is thus legal tender for all debts, public and private. As far as I know, the same is true of the Silver Eagle.
|
|
Rest in Peace
Canada
1360 Posts |
Why do you 'believe' the government with regards to bullion products that were never intended for circulation, but don't believe them when they say specifically 'legal tender'?
Edited by Dcadon
02/26/2014 08:56 am
|
|
Pillar of the Community
Canada
5324 Posts |
Exactly, isn't a silver maple leaf just another version of a NCLT, logic is exact opposite of the 20 for 20. 1 oz. 5 dollar value, 1/4 oz. 20 dollar value, so a person will only redeem a maple leaf if bullion tanks below 5 dollar.
|
|
Pillar of the Community
Canada
815 Posts |
A silver maple leaf does not occupy the same status as mint product NCLT. The SM is widely recognized, and you will have no problem cashing them in at a bank for $5, regardless of the price of silver.
|
|
Page 2 of 2
|
Replies: 22 / Views: 4,261 |
Page 2 of 2
|
First Page
Posted 02/18/2014 11:22 am
