I am really annoyed that none of the Australian or US based distributors offers the 1oz dragon coins for sale. Just let them out and let the market decide on a fair price. This is what is happening in Germany, they are readily available in almost any quantity from most distributors. Sure, their prices are high, but that's obviously what people are willing to pay and what both sellers and buyers are happy with. Here in Australia a distributor gets bashed and threatened to lose all his business for offering the coins at a price which is still lower than what people in Germany or here on silverstackers are happy to pay. That's just stupid! Why should they sell them to us for $40-50 when they could sell them for $100? They have a business to run, they are not a charity organisation. Just offer them for sale and let the market decide what they are worth! Please! stackerACT
I dont understand why the Perthmint is selling ANYthing to distributors at prices less than they are selling to the public for. It seems they are cutting their own throats for no other reason than to pander to distributors they dont need anyway. Its the future! Sell it all online direct!
Shudders is right, if I have to buy anything else on their website in the next 2 months, I think I might just shoot myself
their website is fine to handle 10 buyers at a time, any greater than that, you are basically entering a virtual queue. when the website errors, it is just telling you to get back in queue.
Trouble (as with most online shopping sites) is that it is fine for 99% of the year - it's being able to handle the once a year peak loads that give system admins nightmares.
I think distributors of Perth Mint work in a similar way as distributors from other industries, they have contractual agreement to sell an agreed quantity of the coins from Perth Mint per year, and therefore, they get coins at a discounted price.
Totally agree! Every time I see another thread about 'price gouging' I cringe. Supply/demand.... if you don't want them, don't buy them! They are obviously in the right business at the right time. That is, if they managed to source them.
With the super normal profits the dealers who are squatting on the 1oz Dragons will make above what they bought them from the Perth Mint for (probably a minimum $20 a coin), the Perth Mint could have sold the mintage themselves, invested $50k on extra web servers to cope with the demand, and probably been $1 million still in front.
This term "Super normal profits" is puzzling. The Federal Government uses it to describe the profit turned by the mining and banking industries too. Just what is a "super normal profit"? For that matter, what is a "normal profit"? Accountants regard anything over all the costs to be profit. Economists have profits (somewhat similar to accountants) and then "super-profits" which they define as any profit that is over what is necessary to keep the business owner motivated to stay in business. For example, a ROI of 500% would be more than the amount necessary to keep the business owner motivated to stay in business. A ROI of 12% would keep the doors open. A ROI of 2% means you're better off selling the business and putting the money in a term deposit paying 6%. Is a super-normal profit just a high faluting term for "more money then we think is fair"??? (whatever "fair" is - Personally I think "fair" is a hair colour and tend to prefer to think in terms of equity - is this an equitable result? But thats just me!)
What makes you think dealers are "squatting" on these? The coins haven't even all been minted yet - it was mentioned at the launch in Perth last week.
Super normal profit is an economic term (at least when I was at Uni) to describe the ability of an enterprise or enterprises to flex their market power because of their position as a monopoly or oligopoly to push prices beyond what they would normally be in a competitive market. I think the Fed. Govt used the term "super profits" when they were talking about the mining tax which I never heard of in economics and I doubt is anything more than an attempt to label a highly profitable business = super profits. But in this case, super normal profits refers to the fact that their are only a few dealers who have access to the 1oz coins (ie an oligopoly) they are able to exercise their market power over prices above that of a competitive market and therefore push up their prices/profits.
You mean more 1oz AG/AU to be made still ? or is this in reference to other sizes that are out of stock at the moment. In the words of another ranga "Please Explain"
I think he means that they have a limit on how many can be minted in the year. But the run has only just started. There is no way they would be anywhere near the 300k mintage limit yet.
Perhaps but they knew it was going to be popular and they have know for a while, with new equipment installed etc... They only announced on the blog about the other sizes, nothing was mentioned about 1oz has been mentioned here on SS ?
unfortunately they are companies, and bind by the rules, there is distributors terms and conditions as well. if you break it, the Govt come in and FINE you. (govt get the money - no body gains) if they sell at the price stated, at least the public got a chance to buy them. and more people can have them.
