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 Replies: 58 / Views: 11,852 |
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Valued Member
Canada
109 Posts |
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Bedrock of the Community
Australia
21786 Posts |
Three results will come out of the melting:
1. The melted gold will pay down some public debts.
2. The coins that were sold were obviously the best ones from the hoard, so the average condition of those which survived the melting will be higher.
3. Those which will have survived will make the whole striking scarcer, and may have a slight upward price influence on those which have surviced the melting. I say 'may', because 30,000 gold coins is a lot of gold coins.
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Pillar of the Community
Canada
6768 Posts |
Quote:
3. Those which will have survived will make the whole striking scarcer, and may have a slight upward price influence on those which have surviced the melting. I say 'may', because 30,000 gold coins is a lot of gold coins. So this is sounds nice, knowing that you have couple of them in collection. But is also nice to have more for cheap  |
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Rest in Peace
Canada
1360 Posts |
Still sad to see what should have been considered a "National Treasure" melted for it's content value only. Even if they had a garage sale price of $300 for the $5 coins, and say $600 for the $10 coins even in bad condition they would have been farther ahead then paying the cost to melt, and refine what was left. I feel terrible that the Cons did this, however, as indicated above, it might have some upward pressure on the value of the coins in my own hoard.
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Pillar of the Community
Canada
6768 Posts |
 This exactly what I meant. The possible (not any more) purchase of these for melt or bit above, could be attractive to public and better profit for government. |
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Pillar of the Community
Canada
5324 Posts |
Yes, but you forgot about the previous owners who owns a 1914 5 dollar ms 63 which after the hoard came out becomes half value, it's like if the BOC found a unmelted bag of 1921 5 cent and sold them on the market, my opinion was and still is all these gold coins should have been melted. The RCM could have turned them into 750.00 superman coins at least you knew what you were buying |
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Pillar of the Community
Canada
1505 Posts |
Glad I got some of them, wish I could have purchased a couple more to complete the set. Such is life, sad to see them go.
I agree that they would have likely received a higher value by selling them to collectors.
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Bedrock of the Community
Australia
21786 Posts |
Although I am not a (1) modern mint product collector, I am a (2) NCLT collector.
The $5 and $10 gold coins of 1912-14 put me into the second category.
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Pillar of the Community
Canada
6768 Posts |
@John100:
see, we all care about rareness of the items in the collection, and prefer, that known mintage and grade population remain constant.
But....
we can not hide / destroy items that truly part of our history. IMO better to give access to these items to more wider circle of collectors, rather to have limited amount of them.
Melt all these gold coins similar to discover and destroy second piece of art item, in order to keep the rarity of known one.
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Pillar of the Community
Canada
2187 Posts |
Quote:
we can not hide / destroy items that truly part of our history. IMO better to give access to these items to more wider circle of collectors, rather to have limited amount of them.
Melt all these gold coins similar to discover and destroy second piece of art item, in order to keep the rarity of known one. This is just my opinion, but especially when it's something like this that is early RCM, it would be nice to be able to share it with a wider group of people. |
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Valued Member
Canada
137 Posts |
I also agree, it would have been far smarter to sell off the remaining coins at a bit above melt price and let more people enjoy owning a piece of Canadian history instead of destroying it. Releasing the lower grade coins shouldn't have had any effect on the high grade prices,if it's a ms 65 coin its price isn't going to drop because there's a bunch of f12 on the market.Morgans are a good example of that.It would just have enabled more collectors to have one.I think it's sad and once again the government messed up again.
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Pillar of the Community
Canada
2845 Posts |
While I've not really followed the history of this hoard, could it be this hoard is a portion of the Bank of Canada's gold reserve? Therefore selling it all off to the general public for its numismatic value would certainly not be an option. Gold reserves have historically represented the ultimate in universal value in essence to support the value of a county's local currency and all central banks of virtually all stable nations maintain some degree of gold holdings. http://www.businessinsider.com/coun...rves-2013-12 |
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Pillar of the Community
Canada
867 Posts |
RCM had to melt them....otherwise it kills the retail market for these and prices, if too much supply exists. Besides, there was enough  ing on these boards about condition/prices/picked over by dealers, why would the RCM want any more grief? There was plenty of supply of 1913 & 1914 $10 to satisfy everyone, and simply no way to accomodate other denoms for everyone. They now have a nice GIC note earning 1.15% instead....much easier to carry to those budget meetings.
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Pillar of the Community
Canada
2984 Posts |
Quote:
I also agree, it would have been far smarter to sell off the remaining coins at a bit above melt price and let more people enjoy owning a piece of Canadian history instead of destroying it. Releasing the lower grade coins shouldn't have had any effect on the high grade prices, Yes, but it will have a devastating effect on lower grade prices. It will drive down the price those coins to melt value too. I am sure collectors holding lower grade coins will be none too happy to see a flooding of the market with similar coins. |
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Pillar of the Community
Canada
2845 Posts |
According to the news report, the coins were held by the Bank of Canada. That's different than Royal Canadian Mint, which is a For-profit crown corporation that only mints and sells coins. RCM is not a bank, but they do manufacture coin for the Bank of Canada, who then sells it to banks. The Bank of Canada is the central bank of Canadian currency. It's not simple to explain but the Bank of Canada must hold assets to assist in supporting the value of Canadian currency, gold historically being the strongest. It's similar to collateral or security. That's why it appears these gold coins were simply a portion of their gold reserves. Whether the form is coins or bullion wouldn't make any difference - the value to the Bank of Canada would only be based on international gold prices. |
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Pillar of the Community
Canada
867 Posts |
@MoneyPenney, Lower grade coins from 1912-14 are already at their melt values and always have traded in this range...only BU+ seem to attract a premium to melt.
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Replies: 58 / Views: 11,852 |
Posted 06/29/2015 9:42 pm
