Rare coin company placed into liquidation

How their investment worked?
You bought their 'rare' coins and notes and they stored for you or some kind like a stock option?
 
Ouch said:
Used to love reading their testimonial page...
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Wow. I bet some of them have changed their story. I bet they wished they'd purchased PMs instead.

If you purchased $19,800 of gold in 1999 it would still be worth about $100,000 today.

Bruce & Shirley Watson - Perth WA
Our first investment with The Rare Coin Company was in February 1999, when we bought two banknotes at $19,800. Our February 2010 valuation was $102,600.
Since then we have substantially built up our portfolio, which has shown an annual return of 15.8 per cent. We like the stability and the constant capital gain provided by numismatics as opposed to the volatility of the share market.
It is also extremely interesting to learn more about numismatics through the guidance and professional help offered by The Rare Coin Company.

Ian Finlay - Perth WA
My wife and I are pleased to have been investors with The Rare Coin Company for the past four years. Investing in rare coins and notes for our Self-Managed Super Fund was a breakaway from the traditional investment portfolio for us.
The options available were methodically outlined by one of TRCC's professional consultants, and after careful consideration we added this form of investment to other assets in our SMSF. We were very impressed with the generous returns realised after our first valuation compared to those we were receiving from other investments.

Professor Gary J. Stockport - Perth WA
I have been investing in rare bank notes and coins through The Rare Coin Company (TRCC) for about 10 years. From my own experience, I strongly recommend this investment vehicle for people who are seeking from their investment(s) solid and consistent capital appreciation, the benefits of compound interest (which for my investments have averaged 12-14 per cent growth year upon year) and where you can 'set-and-forget' about your investments for at least 7-10 years.
I receive an Annual Revaluation letter from TRCC for each of my investments which helps me to monitor and track their progress. I have found Rob Jackman totally committed to his clients and he is 100% trustworthy.

Ilse Wiegand - Sydney NSW
I began investing in rare coins and banknotes through The Rare Coin Company in January 2005. During this time, as well as the excellent service I've received, I have been very pleased with my returns, which have averaged 14 per cent per annum.
I have made a number of investments and have been delighted to see that those held for five years have doubled in value.
I recently needed to liquidate some of my banknotes and was very happy to see the valuations quoted converted into money.
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http://www.rarecoin.com.au/testimonials.html
 
"My understanding is that we still own these coins and notes but now of course we have to find a market for them, really without knowing their true value," she said.
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That is the scary part... they think they still own the coins and notes... I very much doubt they will be seeing them if they were held on their behalf at rare coin company....
 
skipau said:
"My understanding is that we still own these coins and notes but now of course we have to find a market for them, really without knowing their true value," she said.
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That is the scary part... they think they still own the coins and notes... I very much doubt they will be seeing them if they were held on their behalf at rare coin company....
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I reckon the will get hold of their property - for example, all the banknotes are serial numbered and won't just disappear into the ether - but being able to find buyers for that much high end numismatic stuff will likely be very difficult if all those investors try to sell at the same time.

From what it sounds like, the "value" of the investment was calculated by the company saying it was 15% more that whatever it was last year. How well that method of valuation holds up in the open market without a broker sitting in the middle telling both buyers and sellers what the items are worth will probably be a little painful. Or a lot painful.
 
My understanding was that there was some sort of buyback guarantee, a guaranteed price/return. Maybe they went under because people started to exercise that buyback option and the company got stuck with coins/notes that it could not sell?

That business model is fine while you have baby boomers buying, but when they start to sell there aren't the buyers coming behind them to keep the prices up. Coincidental that the first of the baby boomers is now starting to retire and need to cash out?

Same dynamic in the property market. Early born boomers might be OK, the later boomers I think are going to get screwed and poor old Gen X has to pick up the pieces.
 
bron suchecki said:
My understanding was that there was some sort of buyback guarantee, a guaranteed price/return. Maybe they went under because people started to exercise that buyback option and the company got stuck with coins/notes that it could not sell?

That business model is fine while you have baby boomers buying, but when they start to sell there aren't the buyers coming behind them to keep the prices up. Coincidental that the first of the baby boomers is now starting to retire and need to cash out?

Same dynamic in the property market. Early born boomers might be OK, the later boomers I think are going to get screwed and poor old Gen X has to pick up the pieces.
Click to expand...

Same dynamic in Precious Metals?
 
Eureka Moments said:
bron suchecki said:
My understanding was that there was some sort of buyback guarantee, a guaranteed price/return. Maybe they went under because people started to exercise that buyback option and the company got stuck with coins/notes that it could not sell?

That business model is fine while you have baby boomers buying, but when they start to sell there aren't the buyers coming behind them to keep the prices up. Coincidental that the first of the baby boomers is now starting to retire and need to cash out?

Same dynamic in the property market. Early born boomers might be OK, the later boomers I think are going to get screwed and poor old Gen X has to pick up the pieces.
Click to expand...

Same dynamic in Precious Metals?
Click to expand...

Just like your mum drinking Mocconna, then you drinking International Roast, then the next generatio will find something worse than International Roast...:D
 
bloomst said:
Eureka Moments said:
bron suchecki said:
My understanding was that there was some sort of buyback guarantee, a guaranteed price/return. Maybe they went under because people started to exercise that buyback option and the company got stuck with coins/notes that it could not sell?

That business model is fine while you have baby boomers buying, but when they start to sell there aren't the buyers coming behind them to keep the prices up. Coincidental that the first of the baby boomers is now starting to retire and need to cash out?

Same dynamic in the property market. Early born boomers might be OK, the later boomers I think are going to get screwed and poor old Gen X has to pick up the pieces.
Click to expand...

Same dynamic in Precious Metals?
Click to expand...

Just like your mum drinking Mocconna, then you drinking International Roast, then the next generatio will find something worse than International Roast...:D
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Shhh! Serious thread here bloomst.

We should discuss IR in other more light-hearted places.

Will be a lot of hurt to come for people with investments in this unfortunately. :(
 
oohhh do you think there will be some cheap coins coming onto market soon :)
 
I have actually seen these guys at a coin show. ultra high grade in house graded coins with huge values attached.
they promote themselves as being top end only dealers.
not surprised this has happened given the way they promoted their business
 
Eureka Moments said:
bron suchecki said:
Same dynamic in the property market. Early born boomers might be OK, the later boomers I think are going to get screwed and poor old Gen X has to pick up the pieces.
Click to expand...

Same dynamic in Precious Metals?
Click to expand...

If I may butt in (I realise you asked this question to Bron)...

I think that PM's won't suffer the same revaluation that SMSF ephemera will due to PM's value which seems to cross cultural divides.

Much of the high performing assets in SMSF are culturally specific. Australian (even 'western') Sports memorabilia, classic cars, Art, popular collectibles etc. may not be as popular with young(er) investors overseas (particulalry Asia & the Middle-East)where the bulk of the world's youth are.

The reason the Federal Govt is allowing such high immigration is to try to fill the dwindling youth demographic the nation will need to pay taxes in future decades. And they will be the target for tommorrow's property 'flippers' and buyers of Bradman's baggy green cap. And while these two examples will surely always retain their value. I'm not sure if old Aussie Bank notes or Pro Hart paintings will be as relevant to a 1st generation Indian Immigrant.... gold (and Silver) however, will always retain it's lustre particularly with people of those cultural backgrounds.
 
^^^ thanks claw.

It was actually a serious question/observation.

I like your thinking regarding your reply, but don't virtually all young people these days worship 21st century goods and drink $6 lattes thrice daily rather than invest in stuff like PMs?
 
Given the nature of the topic it would be nice if this thread could stay on topic. If you want to "spout" off there's a fresh hijack thread in progress.

Cheers
 
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