| Author |
 Replies: 15 / Views: 1,807 |
|
|
Pillar of the Community
Canada
663 Posts |
If gold/silver spot prices continue to fall, is it possible to see cheaper NCLTs?
|
|
|
|
Pillar of the Community
Canada
2124 Posts |
I love optimistic guys...
|
|
Pillar of the Community
 Canada
663 Posts |
Didn't the Perth Mint lower their prices awhile ago? You never know.  |
|
Pillar of the Community
Canada
1528 Posts |
Well Perth lower their price for different reason - people are not buying their coin
|
|
Valued Member
Canada
121 Posts |
Cheaper at RCM or aftermarket? I'd say there is certainly a perception, if not actual, value that is attributed from silver which goes right back to when all coins were mostly silver or gold. If that weren't true then they could just use aluminium and charge $5. $10 vs. $50 silver has an impact but I don't know if this would change RCM pricing much but it might impact demand, sales, and aftermarket. I |
|
Valued Member
Canada
114 Posts |
I doubt they would decrease product prices, their stuff is to hot!  Just take a look at the honey bee coin. |
|
Pillar of the Community
Canada
685 Posts |
aftermarket sure will slow, then less demand on new coins, then RCM will reduce new product/mintage. but it's a very long term change... |
|
Bedrock of the Community
Australia
21786 Posts |
The bullion coin producers buy their bullion on forward contract prices.
This fact will certainly have an effect on their future bullion coin sales.
Some bullion coins are minted in extremely low numbers to justify a 'numismatic' premium. There will be at least some attempt to keep the premium component as great as possible, to avoid hurting profit margin.
|
|
Pillar of the Community
Canada
663 Posts |
If not lower, I hope the Mint doesn't increase their prices. The butterfly issue prices has gone up by $10 compared to the bee. And the moon mask is quite pricey.
|
|
CCF Master Historian of USA Commemoratives
 United States
12266 Posts |
The US Mint has a published pricing policy for its gold and platinum coins; the selling prices of the coins can change on a week-to-week basis based on the spot prices of each precious metal. At present, silver is not included in this policy due to its relatively low per ounce price. I've not seen a similar pricing model published by the RCM, but I would imagine they have a similar algorithm that is used internally to price new releases. If gold stays around $1500 per ounce (or goes lower) I would think the RCM would be "forced" to adjust some of its gold coin pricing. Collectors are definitely taking notice of gold's drop of over $180 per ounce since the start of the year! Collecting history one coin or medal at a time! (c) commems. All rights reserved.
|
|
Valued Member
Switzerland
144 Posts |
I'm sure that it will have an impact! IMO it will be indirect; we are already seeing that there are more coins than ever from RCM. Most of us need to select coins and cannot buy them all - so the balance of offer & demand is moving towards the tipping point. If silver price moves dramatically + or - 25% there will be a change in "consumer" spending and therefor RCM will require to adapt. Remember they are a business - But Mgr can do mistakes..... So it might take a while |
|
Pillar of the Community
Canada
1502 Posts |
I don't see why the mint can't up the price of their stick-something-nobody-else-has-stuck-on-a-coin on a coin series of.... coins. The 2ndary market seems to be supporting $250 well enough. Only flippers and collectors with connections would hurt, but these 2 groups can't even begin to outnumber the average collector.
NCLT really owe spot price nothing more than cost of material. NCLT isn't bullion. Collectors (not investors) pay for the design, mintage numbers, historic/commemorative value, and whatever "i like it and I will buy it" is worth. Silver can be back down to $10/oz and I would still buy that 1kg silver maple with mintage less than 300, a COA with a number identical to my wedding date, and issued the same year, for whatever they ask for.
Well... mostly because it was spotted by my wife "my wife wants it now" is worth whatever she decides it is worth :)
Edited by poboxw
04/14/2013 02:11 am
|
|
Valued Member
Switzerland
144 Posts |
IMO this sounds like speculation - I 'm not sure that this would end positiv...
|
|
Pillar of the Community
Canada
871 Posts |
I say if the mint is going to change their prices on gold and silver products that we wait and see what happens.
|
|
CCF Master Historian of USA Commemoratives
United States
12266 Posts |
Quote:
NCLT really owe spot price nothing more than cost of material. NCLT isn't bullion. Certainly true, but if the "cost of material" decreases significantly it would make sense that the final price of the manufactured product would also see a corresponding decrease of some degree. I agree that NCLT pricing is more about what collectors are willing to pay for the "numismatic value" of a particular piece. That said, numismatic value can't always make up for a decrease in the value of the precious metal in a coin. The RCM already charges strong premiums over melt for its NCLT "coins." IMO, at some point, the disparity between a modern coin's selling price and its melt value stretches beyond what can be covered by its numismatic value. At that point, I would expect (hope for?) a decrease in the item's selling price to compensate. I do, however, believe this is applies more for gold and platinum pieces than it does for silver. For example, the roughly 17% decrease in silver's value since the beginning of the year only represents about $5.25 per ounce. For a one ounce silver NCLT piece selling for $100 or more, a $5 change in its melt value hardly registers. Collecting history one coin or medal at a time! (c) commems. All rights reserved.
|
|
Pillar of the Community
Canada
2366 Posts |
My theory is that there are 3 types of coins; those that sell like fine art (think ladybug), those that sell like stocks (most new releases. Many stay at the IPO price or fall in the aftermarket and some rise), and those that sell like commodities (SMLs etc). Changes in the prices of the precious metals have the greatest effect on the third type and the least effect on the first type. Now if I only had a reliable method for identifying which coins fall into which type and when their type changes.....
|
| |
Replies: 15 / Views: 1,807 |
|
Posted 04/13/2013 11:14 pm
