| Author |
 Replies: 21 / Views: 4,788 |
|
New Member
Canada
24 Posts |
Which commemorative Canadian and U.S. silver (or gold) coins minted for the collector market were most egregiously overproduced and are therefore most commonly available today? Have there been any more overproduced than the 1976 Canadian Olympic $5 and $10 coins? Every pawn shop seems to have a small box full of those.  |
|
|
|
Rest in Peace
Canada
1360 Posts |
The 1976 collector coins were certainly produced in large numbers, but also sold in large quantities. I don't think the mint made a mistake in 'over production', but were unconcerned with secondary markets, and were just striving to meet demand. These were souvenirs of a very popular event. Even though many people couldn't attend the actual events, by possessing these coins you felt you were still a part of the fun.
|
|
Valued Member
Canada
153 Posts |
If my memory does not fail me, The Canadian Olympic Association was planning on paying for the entire 76 Olympics from the proceeds of the 1976 Olympic coin Program.
I believe this did not pan out and if you recall the name of the Montreal Olympic Stadium became "The Big Owe"
|
|
Pillar of the Community
Canada
1747 Posts |
the 1967 Canadian centennial set to me is one for the books as well, if we are limiting this discussion to silver coins, not modern circulation coins.
because of the removal of silver from the US currency, there was a lot of demand for these sets in the USA.
|
|
Pillar of the Community
Canada
2845 Posts |
Quote:
If my memory does not fail me, The Canadian Olympic Association was planning on paying for the entire 76 Olympics from the proceeds of the 1976 Olympic coin Program.
Yes, I think you're correct, with support of the Federal Govt. Money was raised by NCLT to support the cost of the 1988 Calgary Olympics as well. In hindsight I suppose it can be viewed as overproduction but at the time they were issued for reasons similar to people making a voluntary personal donation. By now I'd imagine the majority have gotten melted, considering the fund raising aspect. |
|
Pillar of the Community
Canada
5324 Posts |
Hate to say it, but nickel dollars, most dealers use them as trinkets at shows for youth collectors, always worth a buck
|
|
New Member
 Canada
24 Posts |
Quote:
By now I'd imagine the majority have gotten melted.... Melt them? I never see any Olympic silver coins being sold for less than the value of their contained silver. I mean all a dealer would have to do is put up a sign saying silver coins for less (even half of one percent) than the value of their contained silver and they'd fly out the door. Why then would any dealer pay a refining charge of maybe 10% to melt them? That wouldn't make any sense.  |
|
Pillar of the Community
Canada
2845 Posts |
You think dealers could profit by selling silver coins for less than bullion, as opposed to melt? The result would be to devalue ALL silver, whether collectable or otherwise. I am not privy to any arrangements but typically any high volume results in better pricing, the return for dealers in selling large quantities of silver bullion for melt would be far greater than what's quoted to the average private collector of silver coins. That uncollectable, undesirable and unwanted coins, inventory not turning over, is routinely melted especially when silver prices peak from time to time is beyond debate. It's also possible that RCM's NCLT recommended dealers have a mutually beneficial arrangement in place that includes suppling RCM with bullion to that regard, which then serves as a source for future NCLT production. Edited by wildflowerAB
04/12/2016 5:44 pm
|
|
Valued Member
Canada
147 Posts |
In our case, it comes down to supply simply outweighing demand. Every few months, we'll get large whacks of 76 Olympics, but nobody buys them. They'd rather buy the circulation silver or Silver Maples.
|
|
New Member
Canada
24 Posts |
WildflowerAB Quote:
You think dealers could profit by selling silver coins for less than bullion, as opposed to melt? Yes. Quite simply if melt yields a dealer 97% of the value of the contained silver, that dealer would be 2% better off by selling those coins for 99% of the value of the contained silver. Quote:
The result would be to devalue ALL silver, whether collectable or otherwise. No. Only the "uncollectable, undesirable and unwanted coins" would be subject to such discounting and in your own words they've already been very clearly devalued. Quote:
That uncollectable, undesirable and unwanted coins, inventory not turning over, is routinely melted especially when silver prices peak from time to time is beyond debate. No, that is the debate. I'm assuming that any dealer is rational and will act to maximize his sales proceeds on his coins. Edited by Hepcat
04/13/2016 2:10 pm
|
|
New Member
Canada
24 Posts |
Universalcoins: Quote:
In our case, it comes down to supply simply outweighing demand. Every few months, we'll get large whacks of 76 Olympics, but nobody buys them. They'd rather buy the circulation silver or Silver Maples. Nobody buys them? Your price then is probably too high. Are you pricing them at a discount to Silver Maples and circulation silver? At no premium or even a very slight discount to silver? I'd certainly buy the 1976 Olympics if the price was right, and I really don't understand why other silver coin buyers would not. Price is the great equalizing factor in such cases. Edited by Hepcat
04/14/2016 1:16 pm
|
|
Pillar of the Community
United States
814 Posts |
What about the US Bicentennial 3-coin silver sets? Weren't there so many made that they were available well into the 1980s before the unsold ones were melted?
|
|
Pillar of the Community
Canada
2845 Posts |
Hepcat, when dealers price unpopular silver coins at spot price, no premium for collector value, intrinsic value only, that's a fair and reasonable price whether you like it or not. That you might expect a further discount and present it as you're doing a favour to the shopkeeper, when really it's you who's looking to benefit.....well, I can understand why that strategy may not work well for you. Quote:
Yes. Quite simply if melt yields a dealer 97% of the value of the contained silver, that dealer would be 2% better off by selling those coins for 99% of the value of the contained silver. Considering the spot price of silver is presently appx Cdn $20/oz and 99% of $20 is $19.80....... if only 20c per ounce is a deal breaker for you, I'd then wonder if you have a clear understanding the volatility that perpetuates bullion markets, both on the short and longterm. Furthermore business can deduct certain certain eligible expenses in accordance with CRA guidelines. While you assume it's cheaper for them to sell to you at a discount as opposed to incur the cost of melt, that may not be true at all. Furthermore, it's unreasonable for you to expect business owners to prove why your theory might be wrong, particularly if you insinuate that you possess the ability to better manage their business pricing than them, simply because you're seeking to benefit. Edited by wildflowerAB
04/14/2016 2:24 pm
|
|
Pillar of the Community
Canada
3733 Posts |
i can tell you first hand, dealers buy these olympic coins well under spot price,if they can't sell the for spot then they send them to melt..why? because they have margin on them, they aren't losing anything on them.. unless they sit on them too long and spot price tumbles, I have personally been there when they were busting them out of the cases and throwing them in a bucket..and why again? because they know in short time more will be rolling in..
|
|
New Member
Canada
24 Posts |
WildflowerAB: Quote:
Hepcat, when dealers price unpopular silver coins at spot price, no premium for collector value, intrinsic value only, that's a fair and reasonable price.... I agree. Quote:
... whether you like it or not. I never implied that I wouldn't/didn't. Quote:
That you might expect a further discount and present it as you're doing a favour to the shopkeeper, when really it's you who's looking to benefit.....well, I can understand why that strategy may not work well for you.
Considering the spot price of silver is presently appx Cdn $20/oz and 99% of $20 is $19.80....... if only 20c per ounce is a deal breaker for you, I'd then wonder if you have a clear understanding the volatility that perpetuates bullion markets, both on the short and longterm. You're assuming far too much, both that I might have been trying to bargain with dealers to get a further discount (I'm actually more of the shrug and walk away type of buyer), and that I don't understand how volatile precious metal prices can be. I do. In fact I understand that growth in precious metal prices can't be assumed. The only assumption that can be made is that they will fluctuate. My own assumptions on the other hand are very basic. They are such: 1. Dealers are profit maximizers. 2. Junk silver coins turn over fairly quickly at most often a slight premium to the price of silver, and if they're not turning over fairly quickly at a slight premium then a reduction in the price to a slight discount will accomplish the quick turnover. 3. Unpopular collector coins can be mixed in with junk silver. Buyers won't complain. 4. Sending silver coins for melt will realize only a rather noticeable discount to the price of silver, perhaps as much as 10%. Why therefore would a dealer melt Olympic silver coins as opposed to selling them to customers as junk silver? A small sign in the window "Olympic silver coins at spot!" would do the trick. If not "Olympic coins at 98% of spot!" will . Edited by Hepcat
04/20/2016 3:49 pm
|
|
New Member
Canada
24 Posts |
Silverwolf: Quote:
...I have personally been there when they were busting them out of the cases and throwing them in a bucket. Did you then offer to take any off the dealer's hands for more than he was about to get at the refinery? What was the dealer's response? |
| |
Replies: 21 / Views: 4,788 |
Posted 04/12/2016 2:27 pm
