Royal Mint releases first 100 for 100 coin
- Thread starter AgAuNEWS
- Start date
It's a great idea, you have all your fiat in them, if you want more silver you use the face value to buy bullion and as a back up you have more silver than you would have if you wake up one morning and find yourself in a Zimbabwe situation.
I don't get why everyone is down on this, people love the idea of pre decimal silver coins, this isn't much different. The face value to silver content value isn't that much different than a shilling at various times.
You can turn it into paper or bank balance at any time or spend it on bullion at any time. It's like paper money with a 1/4 silver value insurance built in. Why wouldn't you have them?
I don't get why everyone is down on this, people love the idea of pre decimal silver coins, this isn't much different. The face value to silver content value isn't that much different than a shilling at various times.
You can turn it into paper or bank balance at any time or spend it on bullion at any time. It's like paper money with a 1/4 silver value insurance built in. Why wouldn't you have them?
1for1
Well-Known Member
yrh0413 said:
Perfect logic.. agree 100%
Play Silver buy getting low premium silver near spot.. this is overpriced bullion with a high fiat face which you will have extreme difficulty cashing in.. but its as stupid as hoarding fiat under the mattress (price inflation).. surprised people see this as "zero to lose" tying up you valuable capitol in a investment purchase that is almost certain to lose you purchasing power and also the opportunity cost of buying investment silver at a lower price and holding more ounces exposing you to silver upside (or downside) price swings.
But how so, pound fiat paper for pound silver coin? which is worth the most? Two 50 quid notes or a 100 quid 2 oz silver coin?
Is silver worth 50 quid an ounce? sure seems that way judging all the "lunar"tics who purchase at well over 50,000 mintage and on their second run
Is silver worth 50 quid an ounce? sure seems that way judging all the "lunar"tics who purchase at well over 50,000 mintage and on their second run
Well this is certainly causing a lot of interest I ordered mine at 10am an hour after they went on sale and they said delivery will be in 3 days then I thought I'll get another for my son.I couldn't log on all day due to the Mint's site being down due to unprecedented levels of demand. It is OK today at the moment delivery has gone out to 5 days now.
Just a thought for anyone outside the UK you may and I stress may be able to buy this coin without VAT, it might be worth a try I'm not sure how it works with a legal tender coin.
then I thought I'll get another for my son.I couldn't log on all day due to the Mint's site being down due to unprecedented levels of demand. It is OK today at the moment delivery has gone out to 5 days now.Just a thought for anyone outside the UK you may and I stress may be able to buy this coin without VAT, it might be worth a try I'm not sure how it works with a legal tender coin.
1for1 said:
There will be no problem cashing the coin in if you so desire it is legal currency and most banks will accept it and ALL POST OFFICES will accept it, but why would you want to anyway, it is a collectors item and the 1st 2oz British coin released with an iconic landmark of the UK on it.
You could buy 6 or 7 bullion coins in the UK for the same money inc VAT and immediately loose more than 20% of your money if you had to cash them in the next day. If you had to cash the 100 coin in the next day you would get 100 back.
I think this coin will be a winner but even if it isn't I'm not concerned I'm a collector and it is a historic UK coin in my book and a 2ozer to boot
and a 50k mintage is hardly massive worldwide.Fine Silver
New Member
@motorbikez : i fully agree with your comment
mmissinglink
Active Member
fishtaco said:mmissinglink said:fishtaco said:But if you are in the UK a 100 pound 2 oz silver coin for 100 pounds is a good deal to a coin collector. As said by another member you can go and cash it in at a bank for its 100 pound cost and face value any time.
A 50k mintage of any silver coin mintage with big Ben on it would be a winner.
I would also buy a $200 2 oz silver RCM coin for $200 as well as this coin because I cant see silver reaching $100 an oz in my lifetime.
1) Why on earth would someone want to buy a coin that has a face value of 100 pounds just so you can trade it in to get 100 pounds fiat ???
2) 50K mintage is not a low mintage for a coin with a high price tag. Want a low mintage coin...there are enough modern silver coins around with a mintage of below 1,000 mintage.
3) If you believe silver will be reaching $100/oz, then you are pricing this coin's value in the metal content and you'd be much better off buying silver coins much closer to the current spot. You could buy at least 5 popular 1 oz silver coins for the same price as this 2 oz coin instead and then if silver shoots to the moon as you believe it will, you would have at least double if not triple the value than you would were you to buy this 50,000 mintage coin.
Just sayin'.
.
Try reading my post you quoted again taking special note of this bit! " I cant see silver reaching $100 an oz in my lifetime." smile
So you dont accept fiat for anything? You wouldnt swap a damaged $100 note for a new $100 note? you wouldnt accept a legal tender $100 silver coin in place of a paper $100 note?
Whether one believes silver will be $100/oz or stay at around $20/oz in or over the next 20 or 60 years, doesn't matter....the same principle I noted applies - that is since you are valuing the coin in metal content, you are much better off buying silver coins which are priced closer to spot. Now, if you were valuing the coin mainly in terms of numismatic (or collector) value, then the fact that it is made of Y% of .XXXX silver is not the most important feature of the coin so highlighting your expectations of the price of silver would be mostly irrelevant.
As for exchanging fiat for equal or lesser value fiat (in 50 years, inflation adjusted, that 100 pounds might be worth 50% of what it's worth today), I don't see this as a productive use of anyone's expense in time and energy.
The only reason I would see someone buying this coin is if they believe that it will be very popular and thus gain collector (numismatic) value. I'm not smart enough to know if it will or won't but I'm just saying, if your play is to namely benefit in terms of most bang for the buck on metal content you should look elsewhere to other silver coins priced at closer to spot.
Anyone should buy whatever they feel they want to have...my advice is not to buy, but rather think more critically of why you are buying the product.
Personally, I think the design of this coin is fine but not so fine as to persuade me to buy it at that price. I have paid plenty more than that for an equal amount (percentage wise) of silver for some coins and medals, so I do buy some silver coins and medals based on my perception of a coin / medal's collector value, but this particular RM coin definitely doesn't cut it for my criteria.
.
mmissinglink said:
How do you price a silver collector coins value that cost you more than silver value? How do you determine its selling value? against fiat
If you buy a 2 oz silver coin for 100 pounds and it looses some collector value it becomes worth less, if you buy a 2 oz silver coin with a 100 pound face value it will always be worth 100 pounds regardless its collector value.
This is the reason many like to buy Maples because of the higher face value of $5 as opposed to most others $1 face value,
barsenault
Well-Known Member
...
1for1 said:
This comes up every time there's a $x to $x releases. These are not bullion coins and thus doesn't price the way bullion coins are priced at. They are collectable coins that is not as attractive as other but offer you the safety nest of getting your initial "investment" back if you decided that the coin is not for you. Like anything else, it may require a bit of work to return something you don't like (in this case, getting the bank to accept it). This coin is like any other fancy coins, it may goes up in value or it may not but unlike other fancy coins, at least you have a good chance of getting your money back.
lostwords said:
Definitely not. when I got my 1st 20 for 20 I was disappointed with the quality.
Flimsy paper wrapped in plastic, coin has weak strike like those bullion Britannias... they look more like game tokens.
Seen the second 20 coin, equally disappointed.
expect bullion quality at 100. No box, no COA.
mmissinglink
Active Member
fishtaco said:mmissinglink said:
How do you price a silver collector coins value that cost you more than silver value? How do you determine its selling value? against fiat
If you buy a 2 oz silver coin for 100 pounds and it looses some collector value it becomes worth less, if you buy a 2 oz silver coin with a 100 pound face value it will always be worth 100 pounds regardless its collector value.
This is the reason many like to buy Maples because of the higher face value of $5 as opposed to most others $1 face value,
You loose value through inflation (among other factors). A Pound or a Yen or a US Dollar can easily loose value by that mechanism...these are fiat currencies. So the value of the Pound in 10 years may be half of what it is today. Think of it this way, how much bread, orange juice, and canned food can you buy today with that 100 Pounds; in 10 years, (all other things remaining relatively unchanged...like the spot price of silver) that 100 Pounds may buy only half of what you could buy today. So when you trade in that 100 Pound coin for 100 Pound notes, you will have hypothetically lost considerable value. I won't even go into the other factors that can drive down the value of a fiat currency.
That's not saying anything about the collector value. I have no idea if this coin will become popular and therefore gain significant premium over the years....only time will tell.
I'm simply addressing the denominated fiat value and how inflation alone can considerably devalue the denominated value of a coin like that.
If you are buying this coin, good luck....I wish the best for it's popularity and future premium.
.