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 Replies: 213 / Views: 42,239 |
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Pillar of the Community
Canada
2845 Posts |
Quote:
Anyone else have some thoughts on this?
I suspect buyer regret and disillusionment is in direct proportion to two factors - How much one spent on NCLT in 2016. What was the reason for buying. Year end clearouts, Black Friday and Boxing Day sales, perhaps no December release creates a sort of buying detox but each year this is the time of disillusionment. The way I look at it from my own personal corner, after the belief that NCLT is an investment wears thin, after one realizes they're really only buying highly advertised manufactured little metal disks -- if the collector doesn't become entirely fed up at that point -- there's still remains an opportunity for a satisfying hobby. The key is to refine and define what one chooses to collect and stick with it. Don't be led by advertising, don't follow the pack, and don't be tempted. Think of your collection as money well spent in terms of significance and what it represents to you, and feel pride in having learned spending discipline. Not everything is defined by $$$. Sometimes less is better. |
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Pillar of the Community
Canada
2845 Posts |
Quote:
When there was tons of chatter about flipping on the forums, everyone seemed to be positive....
A profit driven company does not intentionally allow revenue leakage to occur. We can be assured that RCM adjusts mintages and retail prices specifically to minimize the success of flipping. Dealer and ebay reselling prices are in plain sight for all to view. RCM makes the goods, they're given the right to profit - we aren't forced to buy, NCLT is not a necessity. Furthermore it's certain they employ a large team of professional and experienced strategists and analysts involved in pricing, mintage and maximizing profit and who's performance is measured on that very basis. The little guy is not likely to be ahead in the long run. |
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Pillar of the Community
Canada
5324 Posts |
The RCM as a sole manufacturer has an easy business decision in regards to amount of releases, they choose to overload the market with useless, endless , recent stupid beaver maple leaf sixth grade design, when your dealer base has to constantly discount to move old stock why would anyone buy the new stuff, even Apple has recently cut iPhone productions to adjust to market demands |
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Pillar of the Community
 Canada
798 Posts |
Wildflower, I'm not sure that 'this is the time of year people are disillusioned' has much to do with it. People have been getting more and more frustrated over the past 4 years with all the new releases. This has led to a very large (judging by the registries, almost 80%) number of collector's leaving the hobby. Your top registry collectors (Dan Hughes, Augustus and Martens), all of whom are huge advocates for the hobby and very strong buyers, have all decided to retire their collections in 2016 because of RCM market flooding. For those saying that NCLT isn't an investment, well in a lot of cases it is. It is currency, metals and demand speculation driven. If the RCM actively seeks to destroy aftermarket value, then many of your buyers will leave the market. The RCM has removed incentives for collecting by ignoring market conditions. Increasing supply while demand wanes. The only thing that would explain it is that they are trying to tap global markets with Canadiana, and they are failing miserably. |
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Pillar of the Community
Canada
1528 Posts |
You are giving RCM too much credit. I think other mints contribute to this as well (Perth, NZMint, RAM, to just name a few). Look at how many movies related coins that were released by these mints. |
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Pillar of the Community
Canada
6767 Posts |
 and this is without of mentioning small "one-day" mints (yes, compares to the big mints, they extremely fresh) like CIT and Mint Mint of Poland, that took NCLT far from traditional concept and continuously flooding with their production aka "coins". However, CIT did a great job for Mongolian series (i think "Evolution of life" is also their), no complains here... |
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Pillar of the Community
Canada
1528 Posts |
CIT been busy releasing expensive coins and German mints been busy modifying bullion coins with different colours.
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Pillar of the Community
Canada
2845 Posts |
Quote:For those saying that NCLT isn't an investment, well in a lot of cases it is. It is currency, metals and demand speculation driven. If the RCM actively seeks to destroy aftermarket value, then many of your buyers will leave the market. Question -- If buyers consider collecting NCLT to an investment, where are they getting that false notion from? Frankly my observation over many years is that resale values of NCLT have most often been on the losing side of the page. The reason I ask is because the Investment Industry in Canada is fairly heavily regulated - primarily so that it can be determined that investors are knowledgable about the type of investment they're investing in and it's associated risks. All too often I notice "it's gonna be a sellout!" Buy, buy, buy! That's not investing.... Collecting NCLT can be a gratifying hobby (to the definition of "collecting") but one of the greatest problems appears to be when expectations are out of sync. There's also a huge difference between the reasons behind collecting and buying. |
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New Member
United States
27 Posts |
I am sure RCM was very aware of the current situation long time ago. The reason they are still keep producing the large amount of the coins could be two possible reasons. Back to 5 years ago, the market was pretty hot. RCM signed too many contracts with too many dealers to produce too many coins which will take too many years to end. The other reason is that the bonus or stock option for the CEO, or whoever makes the decision is tied to the profit or revenue target. He does not care how the market will be in the future as long as he gets what he wants in his term. That's not only very bad for the collectors, but also for the mint's employees. Edited by jonesdav
01/21/2017 11:06 am
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Pillar of the Community
Canada
5324 Posts |
The dealers and collectors still buys most of the issues as they still have many sellouts but many are still in dealers stock, if we keep buying them the RCM will keep flooding the market, although we are getting smarter. Edited by john100
01/21/2017 09:58 am
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Rest in Peace
United States
233 Posts |
Quote:... We can be assured that RCM adjusts mintages and retail prices specifically to minimize the success of flipping ... Furthermore it's certain they employ a large team of professional and experienced strategists and analysts involved in pricing, mintage and maximizing profit and who's performance is measured on that very basis ... This strikes me as, well, optimistic. Cheers, /s/ ikeyPikey Edited by ikeyPikey
01/21/2017 12:10 pm
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Pillar of the Community
Canada
2845 Posts |
Quote:
This strikes me as, well, optimistic.
That's what I see according to the frequency and nature of Ottawa job postings. For example -- http://www.mint.ca/store/mint/about...B364.node1-2 RCM has evolved to become a strategic money making machine where nothing happens by accident. That their product might be flipped on the secondary market for profit by non-approved dealers is a risk to their business model. Just my opinion but it seems to me that most long term collectors have come to accept the fact that our collections are not an investment and therefore we've become highly selective in what we buy <perhaps thinking "they'll soon figure it out" while observing the high buying enthusiasm of newer collectors> |
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Valued Member
Canada
116 Posts |
I think RCM has an appetite for big data and profiles their client base. I have seen some threads on this site disappear when the comments start calling RCM out on certain things... what we read here is filtered to an extent. |
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Pillar of the Community
Canada
798 Posts |
I know they filter comments on their reviews page. When the 100 for 100 cougar came out, everyone was posting reviews that the cougar looked like it had the ogre's face from goonies ... or that it was walleyed .... Or that a monkey's face was on a lion's body. Everyone was commenting on how bad the artwork was and the coin had a 1 star rating. I checked a week later and all the bad comments were gone and the coin was rated 4 stars. They had even added comments which I believe were obviously fake!
Edited by JGG
01/24/2017 6:05 pm
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Pillar of the Community
Canada
798 Posts |
Compare this to the 2016 S$5 Cougar coin, which has AMAZING artwork.
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Replies: 213 / Views: 42,239 |
First Page
Posted 01/15/2017 11:22 am
