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 Replies: 22 / Views: 4,252 |
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Pillar of the Community
Canada
1700 Posts |
Yes, another one on those silver coins.
I get that they are legal tender coins that can be used. However, am I unique to think that these coins are extremely vulnerable to inflation? Especially when the $20 coins are not at all collectible in the artistic sense.
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Pillar of the Community
Canada
2366 Posts |
Just as vulnerable as any other form of cash or equivalent (ie bank account).
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CCF Master Historian of USA Commemoratives
 United States
12267 Posts |
Quote:
...these coins are extremely vulnerable to inflation? Can you clarify your question? I'm not sure what you are asking. Collecting history one coin or medal at a time! (c) commems. All rights reserved.
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Pillar of the Community
Canada
5324 Posts |
What's the difference between a 20.00 bill and these coins
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Pillar of the Community
Canada
5417 Posts |
^ They're made of silver and are now selling for $25-$35 on ebay. |
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Pillar of the Community
Canada
2124 Posts |
It doesn't matter the silver content as you paid for it $20 or $100, if there's inflation at least it's value will remain $20 or $100, the difference is that inflation means that this money would have a reduction in the purchasing power per unit of money â€" a loss of real value in the medium of exchange.
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Pillar of the Community
 Canada
1700 Posts |
Sorry for a very vague question. Many people around (on the forum and not) have been very exited when they see these coins coming out. However, I personally really think that these coins are and always will be worth 20 or 100 dollars due to the reason that there is no great demand and will always be out there circulating. Even though ebay prices have gone up, I feel like it is more likely to face inflation while collecting these coins than actually making profits. |
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Pillar of the Community
Canada
871 Posts |
These are $20 coins which in time of need will be difficult to get $20 in cash. Many banks are having difficulties identifying these coins as legal tender.
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Rest in Peace
Canada
1360 Posts |
think of it this way: For the $100 coin, if the dollar is devalued significantly.... you still have an ounce of silver. So, if the dollar drops to 1/5 of it's buying power, but the cost of silver escalates to 5 x what it is today - you break even
Now, at $2/loaf of bread $100 buys you 50 loaves
future - Bread costs $10/loaf, $100 buys you 10 loaves.
Silver 1 ounce $20 - 10 loaves of bread (Now)
Future 1 ounce $100 - Still 10 loaves of bread at $10
So, yes, you're better off investing in bullion, but still Coin Collecting is a hobby more than an investment.
If silver escalates faster than inflation.... even more loaves.
(for more fun, you can substitute draft beers, or shots of whisky...or whatever.)
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New Member
Canada
26 Posts |
The way I see it is that this is a hobby. At the very least, you're getting a coin that's equivalent to having a $20 bill or a $100 bill kept at home/wallet. So yes, it is subject to risk of inflation especially if you decide to cash it in at face value opposed to reselling it. The fact that they sell for small premiums factor both collection value and time value of holding the coin - but the time value probably minimal since people aren't really collecting these as investments (and each individual coin is of relatively small face value).
However, if your objective is to earn a rate of return over the inflation rate, it should be noted that is not the primary objective of coin collecting.
But regardless, pretty much all non-investment grade assets are subject to inflation risk.
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Pillar of the Community
Canada
2124 Posts |
If you deposit the same amount in a bank saving account you also have to deal with the inflation.
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Pillar of the Community
Canada
1700 Posts |
I see the point about hobby. However, I only find it valid when the coins are artistically attracting. RCM is therefore veery mart for putting the good images in the 100 coins instead of the 20 ones. It would then be up to us to interpret whether the 100 coins will hold their values with their good artistic characteristics. |
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Pillar of the Community
United States
2408 Posts |
IMO some of the $20 for $20 and $100 for $100 have pretty good artistic qualities. Considering modern NCLT's erratic themes, denominations, shapes, compositions and sizes I'd bet $20 for $20 are likely to remain popular and even gain in popularity if the RCM maintains the series alive. |
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Valued Member
United States
157 Posts |
 and if nothing else, in 20 years they still sell at a slight premium, you're ahead. I personally think the 20 for 20 will remain popular as the 100 for 100 can be intimidating when having to fork out cash to get a couple. |
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Pillar of the Community
Canada
815 Posts |
They are at least as vulnerable as a $20 bill, and perhaps more, if we don't allow the supposition that the market will always value these at $20 minimum each, since we all know the face value means essentially nothing.
I think if you are buying Mint products as an investment in the first place, your strategy has gone astray. If you want tangible investment, bullion is safer, Government backed even better. Because UNLIKE Mint Products, a Silver Maple or Silver Eagle HAS to be accepted for face value by ANYONE.
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Rest in Peace
Canada
1360 Posts |
so... Why 'invest' in US Eagles - or Aussie Kangaroos ...they are only 'FV' $1.00 while the SML's are $5.00 but they all cost pretty much the same - spot plus on an ounce of silver.
And no... once again, they do not HAVE to be accepted by anyone. But you'd be a fool to turn them down, if they are being offered for service or goods at face value. The respective governments have backed them to their face value, and that dollar value - is legal tender, but nobody 'has' to accept them.
The purpose of investing in bullion is a lack of faith in fiat currency of all sorts. Bullion, be it silver, gold, platinum, palladium, or even copper, will continue to have an intrinsic value based on industrial needs world wide. Paper money will face inflation, exchange rate fluctuations, or even fire, but your bullion's value will remain. Whether it be in rounds, bars, or bricks, it'll hold it's value.
Be it NCLT or SML's, they are all 'Mint Products'. Your logic defies me Anjohl.
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Replies: 22 / Views: 4,252 |
Posted 02/17/2014 6:27 pm
