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 Replies: 5 / Views: 1,396 |
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Valued Member
Australia
185 Posts |
This might be of some interest to many on this informative forum.
I remembered reading in the Guardian ( April ) earlier this year on an analysis carried out by the highly reputable team at Morningstar regarding what it costs the RAM to mint each of our coin denominations compared to October 2021 when copper and nickel metal prices were lower.
the 5c now costs 6c per coin to mint - 4c per coin October 2021
" 10c " " 14c " " " " - 9c " " " 2021
" 20c " " 28c " " " " - 18c " " " 2021
" 50c " " 35c " " " " - 25c " " " 2021
Surprisingly, Morningstar found that both the $1 and $2 coin is about only 10c each to mint. I'm not convinced about the very low 10c per coin figure - not even in October 2021.
Morningstar went on to add that, according to the RAM's 2020/2021 annual report, the RAM seinioraged ( coughed up ) to the Fedaral government's coffers $45.3 million, compared to the RAM's " targetted " $19.9 million.
Therein could be the most likely reason as to why the RAM is flooding their own market with far far too many $2 coins : to remain profitable.
Their own profitable existance would be in dire straits if not for their massive " cost effective " overproduction of $2 coins.
Any thoughts, please ?
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Bedrock of the Community
Australia
21786 Posts |
With that sort of info as a background there will be building pressure for a coinage reform.
My guess as a first step in such a reform would be introduce a
Five Dollar bi metallic coin, a tiny bit less in diameter and weight in comparison the the current 20 Cents coin.
UK and NZ have already been through this process.
What may become a scarce series of types,
could well be Charles 111 coins, with current diameter and mass specifications.
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Pillar of the Community
Australia
1333 Posts |
Hmmm yeah it very like they are going to scrap the 5c and 10c, with the change in monarchs they just haven't announced it yet, since I don't see them being able to produce the quantities need for circulation and the QE that been going on.
But wow 50c is minus 25c no wonder they aren't striking as many fifties cents.
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Pillar of the Community
Australia
552 Posts |
Though I do not agree or like it, why would expect the RAM to do anything less than increase their bottom line?
These days in particularly, modern companies, and I would add government agencies to this mix as they are driven by profit, making money is the key - and not satisfying the collector base as far as the RAM is concerned. They do seem to make you think you care through surveys etc but the bottom line is the key in their strategic planning in coin production
The irony is is that it is not their fault - the collector base fuelling their lust and greed to make a profit from a hobby is what fuels this ideology
So fundamentally, collectors should ask themselves - am I collecting or am I wanting to profit from collecting?
Once demand drops for $2 coins then production will drop
Think of Perth Mints reaction to the the fever buying of the 2012 Dragon proof $1 coin - those around at that time will remember - it spurred coin production to way beyond double the number of coins produced per year than previous year's production levels.
For the record I have no issue people making money on this, just like people making money on the stock exchange. If you are in the right place at the right time, why not take advantage of this?
In todays world, you get what you ask for and you do not get what you do not ask for.....
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Pillar of the Community
Australia
1610 Posts |
Quote:
For the record I have no issue people making money on this, just like people making money on the stock exchange. If you are in the right place at the right time, why not take advantage of this?
In todays world, you get what you ask for and you do not get what you do not ask for.....
There lies the problem. RAM markets limited issues as collector coins, yet many collectors miss out, despite asking for them, while non-collectors make a profit. RAM should be honest and market them as coins for scalpers (I mean investors). |
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Pillar of the Community
Australia
2180 Posts |
I thought the price of making a $2 coin the early 1990s was 8c - hard to believe it has barely gone up in 30 years.
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Replies: 5 / Views: 1,396 |
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Posted 11/07/2022 01:11 am
