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 Replies: 43 / Views: 5,176 |
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Pillar of the Community
United States
4870 Posts |
Lower mintages for NCLT coins and lower mintages for circulation coins mean entirely different things.
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Pillar of the Community
Canada
798 Posts |
When 95% of your customers complain that you are flooding the marketplace with product, and you respond by increasing the amount of product you release, you are effectively destroying your consumer base. Everyone could see this coming years ago.
Hopefully they ditch the silver and gold commems for a few years. Canada 150 is a good note to go out on.
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Rest in Peace
Canada
1360 Posts |
Maybe not ditch the commems completely, but be more selective in what to commemorate. First, and foremost, it has to be related to Canada - no more of this Bugs Bunny turned 75...let's make a coin...Ok, for Canada 150 years - is good... but 90 years for the mint (1998 comms sets, did they not think they'd be around another decade?), followed 10 years later with 100 years for the mint. IMHO milestones for commems should be at least 50 years, preferably, 100 years...and for people (Thinking about the queen) 10 years and/or 75 years as I don't think she'll reach 80 years on the throne!
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Pillar of the Community
Canada
6768 Posts |
 Ironically, these 2 of 1998 sets are masterpieces compares many many other commemoratives |
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Moderator
 United States
54283 Posts |
It is all politics.
The government dictates what coins are made.
The government dictates whether or not seigniorage can be counted as income or not.
The government dictates whether or not a coin is legal tender or not.
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Pillar of the Community
Canada
798 Posts |
Also, a major difference to note, is that the dies used to be engraved which was very labour intensive. Now the art is transcribed to the die via laser etching computer programs ... which takes less than 5 minutes. They can create dozens and dozens of coin dies now in the same time frame that it used to take to make one die.
Also noted in the comments section here that someone heard that the Star Trek coin series was going to be YUGE on the radio. As it turns out, the Mint cancelled future designs due to lack of interest, according to this article.
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Pillar of the Community
Canada
1571 Posts |
Where will the RCM go from here? Keep pumping out more and more, faster and faster? Perhaps they will listen to the collectors? Time will tell. |
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Pillar of the Community
Canada
5324 Posts |
Even though the Auditor General took the RCM to task over the spouse junkets and the many millions to reno the boss's office in tougher times to simply cancel xmas party shows the upper managements priorities. The RCM still made money just not as much, use to deal with this company always complaining about it's profits in good times and bad instead of making 2 million in tough years he would say we lost 8 million. Look the RCM marketed those xforx coins, eventually most of them will be redeemed and they couldn't for see that. |
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Pillar of the Community
Canada
3690 Posts |
It's amazing how many people read that shoddy job of a CBC article and followed it up with some sort of nonsense about 'printing' more money or allowing the RCM to show an artificial profit from circulation sales to the Ministry of Finance as the 'solutions'. This is basically the government selling to itself and showing a profit which is distributes to....itself. It's asinine but hey, it leaves 'profits' on the table for the Mint's bloated executive and board of directors to waste. Clearly, based on reported expenditures, they have done that quite well to date. That is the real story here IMO. Where is David Dingwall when you need a quote. However, what I find even more amazing is that most people are not reading the linked Q3 report. Numismatics revenue is UP for YTD 2016 over 2015 on sales of fewer issues. There is a high probability that contribution to profit is also up for the Numis division though we don't know because the Mint does not report divisional profitability. Anyone outside of the Mint concluding that Numis is profitable or not for the Mint is speculating (though logically you have to believe it is). The ARP YTD and Q3 is reporting nearly 50% decreases in revenue (high margin activities) and the other divisions (notably bullion), which dwarf Numismatics in dollars generated, are also reporting decreased revenues in Q3 and are relatively flat YTD. The ARP is likely nearing the end of it's run; they must soon be running out old circ coins to harvest. Mid year reports are very volatile by nature and easily manipulated - even more so for quarterly reports. It takes more than a quarter or three to form a year, so maybe be should hold off on pronouncing the Mint dead. Much of the fuzz about FV coins and profit are prior period adjustments based on accelerated estimates of redemption rates. Results going back to 2015 were restated reflecting back to the inception of the FV program in 2011 but these are mostly accounting policy changes and don't affect operating, financing or investing activities. I.e. they are non cash adjustments. They also changed the method used to recognize bullion sales and cost of sales. Again those are non cash adjustments. I'm confident that despite a little bad press (which should be focusing more on expenditures than 'profits'), that the GOC is pretty happy with a $31M cash dividend. As for the employee satisfaction survey and general morale, I find it interesting that the Mint touted itself as one of Ottawa' top 25 employers and 100 in the nation just a few years ago...so what changed? Maybe the new senior management decided the party was over? (literally) http://www.mint.ca/store/news/royal....WLMmRuQzXb0 The elimination of the Christmas party seems to be the major employee complaint though I'm sure the lack of an average 8200$ bonus stings too. But from what I've seen and heard from Mint employees, I really don't think they will get alot of sympathy from the general public. Where will the Mint go from here? They have eliminated the FV program so expect that they will fill that capacity with even more NCLT that have traditional nominal denominations like the $3 Heart of Our Nation and Spirit of Canada coins. I doubt the machinery will not go silent any time soon.  |
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Pillar of the Community
Canada
6768 Posts |
20 - 25 items (not just single coins) per year only, with average mintage of 7K-10K will save customer base and interest to RCM NCLT. But unfortunately....will not bring much profit to the Mint. Edited by Silveroid
02/26/2017 2:35 pm
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Pillar of the Community
Canada
1571 Posts |
Every year that passes will result in fewer and fewer sales. It's changing with the times. Email devastated stamp collecting, and digital currency will do the same to numismatics. Sure, there will still be collectors but new collects will be far fewer than current collectors that will plan to leave their collections to future generations.
There is a lot to coin collecting, and knowledge is key. Those new to the hobby will find it more and more difficult and therefore frustrating to really get into the hobby, especially with counterfeiting issues.
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Valued Member
Canada
83 Posts |
It's interesting how it was the rise in underlying metal prices, to a level surpassing the fv on the coin, which, historically, is understood to explain why RCM dropped use of silver from clt. Even a Centennial $20 gold piece, which I assume was not clt, even if it was included in some commems, must have risen in price due to its metal content far enough above the premium the RCM charged for it to be worth more, still today, as base metal than as a collectible (they minted a million of 'em). Assuming the preceding is by and large correct --and I trust it will be corrected if it is wanting in verity-- then we may speculate with some confidence that RCM will always be in the game of finding cheaper substrates for its coin designs AND lowering the FV of any design RELATIVE to its selling price, as far as it possibly can. My point here is to set the background for the irony of them, according to the article, blaming the fall in silver prices for the difficulty they found in profitably financing the cost of the money they print. If they are to be believed, then it has to be the case that volatility in base metal prices is the bane of their financial existence. So, if they're wise, they are hedging. Hedge, complain...hedge some more. But more and poorer coins are coming down the chute. That's my bet. |
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Pillar of the Community
Canada
2845 Posts |
Although most of the attention on RCM is through the Canadian coins it mints, that's only a small part of its business. Numismatics (NCLT), even less. Things such as refinery revenue, fees for storage and sale of bullion all fall under their main source of revenue "Bullion Products and Services".  I notice CBC has closed comments on the article. But reading some of them, wow.....perhaps CBC ought to consider a 3-part educational series highlighting the function of RCM. Edited by wildflowerAB
02/26/2017 7:37 pm
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Pillar of the Community
Canada
1823 Posts |
Quote:
related coins like Superman, Looney Tunes, or Star Trek. Just returned from the post office they had the looney tunes 25 % off I was looking at the spelling of looney tunes is that not a spelling mistake I remember it looney toons not tunes  Edited by yingyang
02/27/2017 3:27 pm
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New Member
Canada
24 Posts |
Those CBC comments. Ha.
"The Mint prints money, so it shouldn't be a problem."
They just dont make coins out of thin air. It COST money to produce money!
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Posted 02/26/2017 11:08 am
