| Author |
 Replies: 31 / Views: 4,787 |
|
Valued Member
Canada
451 Posts |
There is no doubt that these two series are generating huge amounts of cash for the Mint. The fact that they can get away with putting face values of $100 on a coin with material content less than $25 speaks for itself. If they make $75 per coin, that is $3.75 million dollars minus labor and PR costs.
This all looks good up front.
But what happens when people start returning these coins? Does the Mint not have to refund the bank that accepted the coin? I can see this as being a major problem down the road.
Up until now, most NLCT's have had extremely low face values, even below the cost of silver. In this case, the Mint would gladly refund the face value and melt the coin down. The fact that the coin's value is usually worth more than its face value content also makes it stupid to cash the coin into the bank.
But now, the coin is worth what collectors paid for it. I am coming across more and more posts regarding how to return these coins to the bank. I have even come across hypothetical posts about buying these coins solely for the sake of returning them and cashing in on the 2% credit card rebate.
If the Mint is forced to take any of these coins back, it would be considered a loss factoring in labor costs and PR costs.
If too many collectors start downsizing their collections, this is going to cause major problems for the Mint in a few years. While the current CEO looks like a genius, the next CEO could have to face financial troubles. Especially once collectors stop going along with the price increases, decrease spending, and broadening their collections Internationally. Edited by Lithanial
05/27/2013 10:24 pm
|
|
|
|
Valued Member
Canada
335 Posts |
Sorry I saw issues as in releases my bad
Edited by CanadianCoins1999
05/28/2013 9:37 pm
|
|
Valued Member
Canada
246 Posts |
Well, I don't think it's really a problem, if bank return our 20 for 20$, it's the bank of Canada that refund the banks... It's like retiring money on the market... And for the collector, it will eventuelly put a rarity on those coins and the value will go up... It's all hypothetic, but IMO it's just like the government put bonds on the market...
|
|
Pillar of the Community
Canada
685 Posts |
bank then will charge fee (e.g. $5 for $20coin and $20 for $100coin)
|
|
Rest in Peace
Canada
1360 Posts |
who cares on the cost of returning them? It's still $100 in your pocket. The mint has the money you gave them, reinvested it in something else, then if the coin is returned - so be it. $100 is a $100. What's the problem?
Should silver then fall really low... it's still your $100 - should it rise to over $100/oz... great again - for you. Why worry if there is an eventual 'turning in' and remelting of all these coins? Less on the market - make yours more valuable.
|
|
Pillar of the Community
Canada
815 Posts |
The mint is fabricating instant seniorage. Think of the US State Quarters. They are made for less than face value, and X% of them are kept by collectors who essentially "buy" them for 25c each. In the case of the Wildlife in Motion/$20 for $20's, the seniorage is surely X%+Y, where Y is 1 or greater. I cannot imagine these coins circulating. If one coin is returned to the bank, someone else will take it in return for $100 in Federal Reserve Notes, essentially "buying" it back from the bank. Think of these as used video games. The publisher (mint) sells them at a profit initially, so even if that profit is minimized by some returns/used game sales, there is still a margin. Since an ounce of silver can be made and sold for spot, I doubt the Stampede costs more than $20 to manufacture. |
|
Pillar of the Community
Canada
2366 Posts |
I remember reading once that the advantage of paper money was that 6% of it got lost, damaged, washed etc providing a pretty much guaranteed rate of return on the investment of producing it to the government who issued it. Things at the national and global economic level just don't work the way they do for us individuals. Kind of like the Newtonian physics we learned in high school just doesn't scale up to explain quantum physics at the universal levels.
|
|
New Member
Canada
12 Posts |
Anyone actually cash-in the $100 for 100 or $20 for 20 through bank?
I have not tried it on bank, but I tried it on grocery store and casino and both said 'NO"
|
|
Pillar of the Community
Canada
871 Posts |
I suggest you go to the mint boutique closest to your city/town and shop there.  |
|
Rest in Peace
Canada
1360 Posts |
@Coinsnewbie said: "Anyone actually cash-in the $100 for 100 or $20 for 20 through bank?
I have not tried it on bank, but I tried it on grocery store and casino and both said 'NO"
So what? if you didn't want the coins, why did you buy it in the first place - to play 'stick in the mud' just to 'see if somebody would accept it as cash?' Come on... Can we get off this already? The coins were issued, those that wanted to buy one/some - did. Those that were late - were left to the scalpers errr... secondary market and paid a mark-up. Now you complain that you can't get face value for it at a casino? Get over it. Put them in an envelope - if you don't like them - and ship them back to the mint and forgetaboutit. I bought every one of the 20/4/20 series and like them all (not too fond of the Reindeer - but my nieces love them)and will do the same for the $100 coins. All the ney-sayers at the beginning of the speculations are eating crow now - after the Bison's sold out in a day or so. Granted time will tell... but I'm insuring mine for at least $100/coin thank you very much.... and keeping them.
Edited by Dcadon
05/28/2013 12:42 am
|
|
Moderator
 Australia
16806 Posts |
The way the law in Canada is written, nobody, not even the banks, are compelled to accept your elevated face value coins for face value. See this discussion last year when it hit the mainstream news. I think the laws were modified after the Montreal Olympics coin fiasco, when people tried to cash in hoards of worthless Olympic coins. Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
|
|
Rest in Peace
Canada
1360 Posts |
Yeah, wish I had a nickle for every $5 and $10 that was "worthless" back then... at over 30 ounces a set, they went from face value - $210 a set - to well over $700 and have since settled down a bit. The same thing happened then - though - speculators bought them up in droves, only to be disappointed that they were also produced in 'hordes' there for not achieving the desired 'collector status' - then, with boxes of unsold sets being returned, the mint wasn't prepared to give the money back.
Edited by Dcadon
05/28/2013 01:13 am
|
|
New Member
Canada
12 Posts |
You guys all have the points.  I didnt intend to cash or spend the coin, but just gave a test on which place would take the coin in case one day I only have it in pocket. |
|
Pillar of the Community
Canada
2124 Posts |
And why do you think the grocery employee has to know EVERY coin (to identify) that has been released by the Mint (hundreds) just because one guy has nothing to do and just want to "try".
In the Mint web page it's very clear the procedure to cash out the Mint coins and going to casinos and groceries it's not included.
|
|
Pillar of the Community
Canada
1528 Posts |
if you have time, try using the new plastic money on vending machine and see which one accept your plastic money and which one doesn't. You can also go to corner store with $100 bill and see which corner store willing to accept them when purchase items in the store.
|
|
Valued Member
Canada
315 Posts |
Quote:
Anyone actually cash-in the $100 for 100 or $20 for 20 through bank? Yes, and many times. Described many times here and on RFD |
| |
Replies: 31 / Views: 4,787 |
Posted 05/27/2013 10:37 pm
