Coin collectors are making millions

JulieW

JulieW

Well-Known Member
Silver Stacker
Interesting note on certification.

https://www.theage.com.au/business/...-young-people-cashing-in-20181210-p50l8u.html

Cash use has plummeted in Australia over the last few years but Eric Eigner isn't worried.

"People will want to collect something that appears to be more scarce," he says. "I think it's a good thing to a certain extent."

The 33-year-old is the owner of Drake Sterling Numismatics, a coin collecting business he started in 2008, and he says demand continues to grow for coins with the business turning over $2.4 million last year.

have gone cash free while Westpac chief executive Brian Hartzer says cash’s popularity has declined "faster than any of us anticipated".

He predicts 95 per cent of payments will be electronic within a decade.

"Our market is definitely growing," she says. "95 per cent of our sales are currently to new buyers, they may not be new buyers to the industry, but they are new buyers to Coinworks."

Jacobs says Coinworks has sold eight Holey Dollars, Australia's first coin, over the last 12 months worth over $2 million.


"I will be honest, we were staggered," she says.

Coinworks turned over more than $6 million last year and Jacobs says turnover this year will be closer to $7 million.

However, she says this is partly a result of the market recovering from a downturn in 2013 after a coin dealer went bankrupt.

Jacobs says she is unsure what impact the decline in the use of cash will have on the coin collecting industry.

"It will be an interesting one," she says. "Who knows there may be an impetus to collect more, but I am not sure. If the Royal Australian Mint stops producing coins does that mean it will stop producing collectors sets? Those sets really drive the market. It is a little bit of unknown territory, but who knows it might even strengthen demand."

More collectors
More young people are getting involved in coin collecting, according to Ross MacDiarmid, chief executive of the Royal Australian Mint.

"There is certainly a relationship between circulating coins and collectable coins," he says. "While we predict demand for circulating coins will continue to decline, but at a slower rate, we also encourage people to continue to participate in the tradition of collecting coins. In an increasingly intangible world, there is also a heightened appreciation for the physical value that coins offer, their educational potential and the meaningful experience of holding a coin in our hands"
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Just read that too.
Also interesting that more young people with disposable income are getting involved in coin collecting. I would count myself as one of them. But I don't personally know anyone of my peers who does.
 
I doubt they are "making millions"

Turning over millions and making millions are two separate things

I think most of us know that there isn't huge profits to be made in most cases
 
Soprano16 said:
I doubt they are "making millions"

Turning over millions and making millions are two separate things

I think most of us know that there isn't huge profits to be made in most cases
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For those coins, they are making huge profits.

It's not the pittance margin that bullion dealers can make on bullion coins.
 
Captain Kookaburra said:
For those coins, they are making huge profits.

It's not the pittance margin that bullion dealers can make on bullion coins.
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Oh I don't doubt the profits made on the Holey Dollars etc, but the article is clearly trying to portray that they're all making millions, throwing out large turnover numbers but not a single mention of actual profits
 
Most of the coin dealers I know are only at the market stall levels and they are winding up their businesses, it has mostly been a hobby job for them in retirement but the cost of the stalls and getting up early to the markets is not worth the return.
 
We are lucky to have such a strong numismatics market. its not uncommon for sales in the hundreds and thousands on face value of Australian decimal coins and notes in every denomination issued from 1 cent upwards. I honestly cant think of another currency globally with such high prices achieved for the same value modern numi. And while the Royal Australian Mint continue to market commemorative issues and collectibles as well as it has. it will continue for years to come. I cant wait till they get rid of the 5 cent piece. If the one and two cent coins are anything to go by. Im not sure about getting rid of the lot though, The banks already make enough out of us.
 
Does anyone else remember a few years back when a big numi-investment mob went broke. At least one ss member got burnt by it. Problem involved the valuations versus the actual worth of many of the coins they dealt in.

Retail price via an actual shop vs online vs hobbyists at markets vs auction price plus commission vs wholesale vs valuation price ( estimate) vs stackers rates vs melt value.

The actual realised price, however it is sold, may be a long way off its valuation estimate as listed in something like a superannuation portfolio.

Mossgreen were another who dealt in high end collectibles that sank due to reality not matching their opinions of what some things should be worth or supposedly will be when sold.
 
Eureka Moments said:
Does anyone else remember a few years back when a big numi-investment mob went broke. At least one ss member got burnt by it. Problem involved the valuations versus the actual worth of many of the coins they dealt in.

Retail price via an actual shop vs online vs hobbyists at markets vs auction price plus commission vs wholesale vs valuation price ( estimate) vs stackers rates vs melt value.

The actual realised price, however it is sold, may be a long way off its valuation estimate as listed in something like a superannuation portfolio.

Mossgreen were another who dealt in high end collectibles that sank due to reality not matching their opinions of what some things should be worth or supposedly will be when sold.
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Yep... Perth Mob - Rare Coin Company.

Collectibles can be an easy target for an indirect Ponzi style thing, or even just a way of getting a loan to cover trading from your customers.
 
I once acquired a number of Aust. Sovereigns from an auction in Brisbane last year ( or maybe year before ) …

They came in little packets with notations from the previous seller ( a Sydney-based dealer ).

As an example, what I acquired for $750. was previously sold at some $9,950. in 1990.

( from a hoard of 'ship-wreck' coins )
 
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