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 Replies: 32 / Views: 5,606 |
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Pillar of the Community
 Canada
2360 Posts |
The going rate for an ounce of silver in bullion is $19.53 today.
The mint does not pay that going rate for their silver.
There is 1/4 ounce of silver in the 20for20 coin, raw material cost is $4.88 max.
Design and licensing costs, labour added, overhead, my sense is they are making money off these.
I agree that they also attract new collectors, affordable, some good designs.
I'm one of those, my first NCLT was the first in this series.
Where is that restroom, gotta love it.
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Pillar of the Community
Canada
2019 Posts |
Quote:There is no chance the RCM makes any profits on these 20 for 20 coins 350000 X $15 = $5.25 million , if they sell all the mintage they indeed are making money from these. |
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Pillar of the Community
Canada
5324 Posts |
Not to just argue but, the RCM owes the Bank of Canada face value for these types of coins, plus the cost of marketing and production costs. My opinion they must lose over 5 dollars each on these coins, in general the RCM has made only 2 to 3% return in a monopoly business environment over the last few years. Edited by john100
08/07/2015 7:05 pm
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Valued Member
Canada
204 Posts |
I doubt that the RCM owes bank of Canada the face value, there is no point making these, I think its only when they are REDEEMED back for cash, they are considered actual "currency" then they have to pay the BoC but out of the 350k how many will be returned? most will sit in collections and thats it, so the mint sold $5 worth of silver for $20, $15 profit. |
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Pillar of the Community
Canada
6768 Posts |
The RCM will not Mint all 350K, but more or less half of it - I do not believe in demand here. half of minted amount will be later returned to the banks... |
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Pillar of the Community
Canada
2360 Posts |
I think they will sell all 350,000 of them. The theme is popular.
They sold 1,000,000 SML Eagles.
Also, this is the third Licensed 20for20 this year.
Women's World Cup of Soccer - FIFA
Bugs Bunny - Looney Tunes
Superman - DC Comics
Will they have Santa drinking a Coke for Christmas?
Edited by SilverDon
08/07/2015 10:53 pm
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Pillar of the Community
Canada
6768 Posts |
Quote:
I think they will sell all 350,000 of them. The theme is popular.
They sold 1,000,000 SML Eagles.
It is not exactly the same. Eagles have been sold for bullion price as investment (of cause people also bought for the collection). And these ($20for$20) are the "safe buy" only here in Canada....no one abroad even will not think to cash it for the face value. |
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Pillar of the Community
Canada
2360 Posts |
I agree, maybe not a good comparison with the bullion coin but the Eagle was a popular theme in the USA which drove sales, and this theme is popular there as well. It's not about redeeming for face value, it's collectable.
Superman is popular all over but esp North America, good gift ware market, some comic book cross over hobbyists, inexpensive coin, watch for an all out marketing blitz to come on TV, print and on-line - possible sell-out, it has potential IMO
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Pillar of the Community
Canada
5324 Posts |
The RCM has to have some provision for these returned coins. Do you think the BOC will just eat the return costs of these 20 for 20 coins, the banks are paid some fees for redeeming, if these coins get redeemed in large quanities it has to cost the RCM massively. Just try mailing a bubble wrap envelope on a 20.00 item and you will just start seeing the handling costs alone. By the way the RCM makes most of its profits from the bullion and etf divisions. |
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Pillar of the Community
Canada
6768 Posts |
Quote:
Superman is popular all over but esp North America, good gift ware market, some comic book cross over hobbyists, inexpensive coin, watch for an all out marketing blitz to come on TV, print and on-line - possible sell-out, it has potential IMO Right, SilverDon But together with popularity has to be something else. For Superman coins - it great design, for silver bullion it is low cost and potential investment, for $20for$20 - it is face value. But nothing helped to the "2013 Vintage Superman". Too many and too vintage design. Same with the recent $20for$20. These are my thoughts |
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Valued Member
 Switzerland
144 Posts |
Well I´m sure that there are some bright accountants @RCM to figure out how to make a profit even on a 20:20 coin. Not one business responsible will increase mintage to 350k if it was a loosing item! And that RCM does it for their customers - I´m sorry, but I greatly doubt that. For collectors - it´s a must have... For accountants - it´s at least a zero game (without calc the interest) For pessimists - it´s a no go and for optimist.... ah are there any optimist left for RCM coins? just kidding :-) |
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Pillar of the Community
Canada
1581 Posts |
I just notice from RCM that it has shipped to me (presumably subscription). I did't even know about it. I guess this is more Canadian than Bugs Bunny. But not by much. |
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Pillar of the Community
Canada
1581 Posts |
1/4 toz of silver: $5
Selling price: $20
They might as well close shop if that gross revenue is not profitable.
Edited by dialog_gvf
08/09/2015 09:41 am
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Valued Member
Canada
194 Posts |
I received my notice on Friday that 20 for 20 Superman has been shipped, I thought it was an error but judging by others receiving notices, it was not.
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Pillar of the Community
Canada
5324 Posts |
These types of coins are used only to attract new collectors, no different than grocery stores selling milk for 3.99 a bag. What happens when the banks return these coins to the BOC? The RCM hopes the new collectors will buy an overpriced 1 oz. 100.00 NCLT in the future, but these 20 for 20 and especially the trademark version has added cost to Warner Brothers and DC, I do not think they licence these coins for less than a 1.00 each |
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Replies: 32 / Views: 5,606 |
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Posted 08/07/2015 5:59 pm
