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 Replies: 25 / Views: 5,358 |
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Pillar of the Community
United States
1037 Posts |
I have pondered buying coins from the RCM. Their products are expensive, but usually have low mintages per coin. Even with the CD to USD conversion, RCM products are expensive. So do lower mintages equate to higher premiums? I don't know. That's what has been keeping me from buying from the RCM. For example: the 2015 $100 silver Canadian Horse. Will this hold its value in 5 years or be worth spot-silver? |
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Pillar of the Community
Canada
2984 Posts |
Quote:So do lower mintages equate to higher premiums?
I don't know. That's what has been keeping me from buying from the RCM. For example: the 2015 $100 silver Canadian Horse. Will this hold its value in 5 years or be worth spot-silver? Absolutely not. 95% of coins minted by the RCM in the last couple of years have depreciated in value. If you look hard enough you could find most coins below issue price. 10,000, 12,500, 15,000 mintages make no difference as there are more coins than collectors interested in them. The $100 Horse coin will always be worth $100 since it is one of those $100 for $100 coins issued by the Mint. Supposedly you could always return them to any Canadian Bank for $100. |
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Pillar of the Community
Canada
2019 Posts |
Quote:
So do lower mintages equate to higher premiums? Not always, its more "demand" plus "mintage" that makes a coin hold or gain value, if no one wants the coin then it wont matter if the mintage is 500 or 50,000 or somewhere in between. Buy what you like, there is no guarantee they will increase in value, but half the fun is finding out later that the coin you bought has indeed increased its value, but don't count on most coins doing this long term at least. Edited by Northerncoins
05/17/2015 08:08 am
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Pillar of the Community
United States
3789 Posts |
First, let me say, yes, this topic has been mentioned many times. I remember once a member was a bit, lets just say his feathers were ruffled when I brought this up. But no I agree with you, RCM coins over priced. Most coins drop 50-60% in the secondary market, if you want a recent issue, all you have to do is wait a year or more and you will find them at a better price AND many times they are already graded! I have stopped completely buying ANY RCM coins unless its something that connects with me AND it has to be 40% off or more. Otherwise I am not buying. Now I want to make two points as I dont wish to beat the RCM down here and be negative as I realize many folks still are buying and collecting and I appreciate their passion despite what is happening. My two points are- 1- Most private/Goverment mint coins are OVERPRICED. Period. The mark ups are crazy and for the most part, the vast majority of coins will sell for less online. I have looked at various coins from various mints and I know this to be fact. Don't buy coins as an investment. Yes, I do agree, for the money that is put into them, they should at some point give you something back besides the fun and enjoyment of collecting. However, the vast majority coins dont do that.. and that brings me to point 2.... 2- Coins appreciate in value and in some cases rapidly, due to the old supply and demand relationship. Even the RCM over their releases have some winners every year. Most mints do but based on my numbers for what I track and like, its a very low percentage. In some cases, I didnt even like those coins, they were not appealing to me. I have scored a few tho over the years and even recently. A few last thoughts. As has been mentioned, buy what you like, what your focus is on. This way you limit what you are buying and are not just throwing away at coins that will end up dropping in price and then you realize you didnt like them. Finally, mintage does and doesn't impact price appreciation. I have recorded plenty of coins that have mintage of 250, 500 and they plummet in price. AGain, its all about supply and demand. |
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Valued Member
Canada
62 Posts |
I tend to agree with the TITLE of this thread not necessarily the comparisons. Myself I would prefer to buy 5 OZ of pure silver before spending $125 on a 1 OZ RCM coin. Any RCM 1 oz coin with a very low mintage starts off way to $$ for what it's worth IMO. Just my useless $0.02 |
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Pillar of the Community
Canada
6768 Posts |
So the bottom line, they definitively overpriced initially, and RCM (except the marketing tricks like "free box") doesn't provides discounts, sales...never But anyway, better to buy from RCM directly, or one of the trusted sellers. Otherwise, who wants the reduced in price, but "second-hand" item, that issued months ago? (of cause exception for the collectors that missed new item or new collectors) . |
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Pillar of the Community
United States
3789 Posts |
@silveroid-
Well, I do think there are a lot of collectors who want that second hand item, and I dont think its just newbies or someone that missed the coin.
I personally, there are some coins I want but I just now outright refuse to buy them at full price. There are many collectors who take great care in their collection as well, heck most of these coins end up being stored away anyways and rarely see the light of day so their condition usually is rather good.
This massive drop in prices tho, is just, wow. I am in two other hobbies and I do some things happening, prices dropping, 40 or 50% off.. but there is something jarring about being a precious metal coin dropping that hard....
perhaps tho this was a long time coming with PM prices being so soft.......
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Pillar of the Community
Canada
6768 Posts |
Yup, sorry
I've been bit sarcastic saying about "second hand"
The main point enjoy the collection, is to buy what really need, like and fits the budget.
remove any of three components - and the person will not be satisfied.
So if need to get the coin with the reduced price - go ahead and to buy from secondary market, just be aware, that you might not like the condition.
And it's true about the newbies: all the good coins from 2007-2012 all in private collections (except the 1/2oz Penny with big mintage)
Edited by Silveroid
05/21/2015 7:36 pm
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Pillar of the Community
United States
3789 Posts |
@silveroid hey no worries, I didnt take it badly. I was just thinking, I mean I do buy coins long after they been released.. only because I want a good deal and I wait and wait until I find a dealer offering a really good deal. I have scored a great deal by waiting for in a sense, second hand coins. There is a dealer on ebay who basically must be buying oversupply from either RCM or other deals, slabs the coins then has auctions. The coins usually go for 40 - 50% off with their auctions. Dont get me wrong,, I like some coins from RCM but I dont want to pay full price anymore. I am still stalking a Lake Michigan Great Lakes coin. Now I saw they have a coin with china panda and Canada bison I think it is.. I like that coin but its not worth it to me. anyways, I mean I dunno,,, I collect vintage and modern star wars toys. Prices do drop and come and go for items but like say modern SW toys, they drop, but not so massive like I see in coins. So I am shocked at the discount on coins when you wait a year or more.... |
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Pillar of the Community
Canada
1461 Posts |
Both e_coins and MCM (and Silvertowne to a certain extent) in the US slab many Canadian coins. So I'm guessing you're referring to one of them. These are primary RCM dealers and they get their coins at a discount to start. And although many coins they sell graded at PF-69/68 can go for a less than mint price (and not many do at 40%), you won't find too many PF-70 coins they have sell below mint price and often far above. They also profit on first/early release labels. It's a law of averages. They may loose slightly on many coins, but have huge profit gains on the good ones. They also slab many circulation coins at high grade and profit there. As SPP mentioned in one of the threads, people have been losing money on RCM coinage for years. This isn't anything new. Investment shouldn't be the forefront reason why you by RCM products. Bottom line is that some people buy used cars some people by new ones. Some people line up for the next gen Ipad, some don't. Edited by TheCoinHunter
05/21/2015 9:34 pm
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Pillar of the Community
United States
3789 Posts |
sorry to say but I have seen and documented countless coins that are PF 70 and go for 40% discount. When a coin is not wanted, not even a 70 slabbed label helps boost the demand for a that coin.
you can take that to the bank!
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Pillar of the Community
Canada
1461 Posts |
So I looked through many PF70 sales of recent NCLT coins and rarely does one sell below mint price never mind at 40%. Possibly an example here and there of really unpopular coins but certainly not close to the extent of "countless" and not at 40%. Here is a sampling. http://www.ebay.ca/sch/i.html?_from...pg=200&rt=ncEdited by TheCoinHunter
05/27/2015 08:47 am
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Valued Member
Canada
312 Posts |
I bought a PF70 whitetail deer coin from silver town for $80.00.......issue was $99.00
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Pillar of the Community
Canada
6768 Posts |
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Pillar of the Community
Canada
1461 Posts |
Look, I'm not saying that it doesn't happen. I'm saying that the claim that it's a common occurrence at 40-50% at PF70 is simply untrue. It also depends on how common the coin is and how available it is in a PF70. There are quite a few white tail deer coins in PF70 and a few did sell over mint issue.
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Replies: 25 / Views: 5,358 |
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Posted 05/17/2015 03:17 am
