Should the Lucky Eleven™ be subsidizing the obscene profits to be made by the public on the ATB Bull
Longacre
Posts: 16,717 ✭✭✭
I have not been following the ATB Bullion Coin issue too closely, so please correct me if I have some of the facts wrong. I understand there exist the Lucky Eleven™, who are private enterprises that are authorized distributors of US Mint bullion products. I believe there are pretty stringent requirements to become one of these eleven distributors, and these companies have to make significant purchases from the Mint, and tie up a lot of working capital in Mint bullion products.
I also understand that these Eleven™ are only allowed a profit of 10% over their cost on the ATB bullion coins, and they must sell the coins to members of the American public.
We have all seen that before the Mint put a collar around the profits that the Eleven™ were destined to make, the prices of these bullion coins reached obscene levels.
Assuming that things work as planned, the general hoi polloi (the American public) seem to stand to gain from the status of these Lucky Eleven™, in the sense that the Eleven™ have put out a substantial amount of money to make the ATB bullion purchases, but have a very limited upside (10%). The public, however, once these coins are in their hands, have the advantage of the low 33,000 piece mintage (which will never change), and will make an obscene profit on the resale of these coins on the backs of the Eleven™.
Now no one on these boards is more liberal than Longacre, and it tugs at my heartstrings that the US government is finally actively practicing the share-the-wealth concept with the public, but I am also a free marketer. Should the public at large be allowed to take advantage of the status of these Lucky Eleven™?
What do you think?
I also understand that these Eleven™ are only allowed a profit of 10% over their cost on the ATB bullion coins, and they must sell the coins to members of the American public.
We have all seen that before the Mint put a collar around the profits that the Eleven™ were destined to make, the prices of these bullion coins reached obscene levels.
Assuming that things work as planned, the general hoi polloi (the American public) seem to stand to gain from the status of these Lucky Eleven™, in the sense that the Eleven™ have put out a substantial amount of money to make the ATB bullion purchases, but have a very limited upside (10%). The public, however, once these coins are in their hands, have the advantage of the low 33,000 piece mintage (which will never change), and will make an obscene profit on the resale of these coins on the backs of the Eleven™.
Now no one on these boards is more liberal than Longacre, and it tugs at my heartstrings that the US government is finally actively practicing the share-the-wealth concept with the public, but I am also a free marketer. Should the public at large be allowed to take advantage of the status of these Lucky Eleven™?
What do you think?
Always took candy from strangers
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
0
Comments
TD
I'm being sarcastic, of course.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
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mbogoman
https://pcgs.com/setregistry/collectors-showcase/classic-issues-colonials-through-1964/zambezi-collection-trade-dollars/7345Asesabi Lutho
<< <i>Point of order: Your assumption that the public are the ones actually getting these things is highly suspect. Anecdotal evidence shows the vast majority of the coins released so far have gone to the dealers and HSNs of the world. For the most part, with very few exceptions, the public has been shut out. There is LOTS of hanky-panky going on behind the scenes to get around the mint's restrictions... >>
I agree, it seems as many went out the HSN, CSN and the Coin Vault as was sold by the Gold Center to walk-ins on monday. They were "soul'd out" after 600 sets? They should have 3,000 sets. Some article quotes a GC person as saying they took care of their longtime customers and dealers first.
<< <i> I can't believe there are still eBay bidders when there is an eBay aution giving the contact info for the Lucky Nine™ and that auction has over 1400 page views, too! >>
I can think of numerous reasons.
a) uninformed ...
b) the lemmings syndrome...(noted for periodic mass migrations that sometimes result in mass drownings.)
c) coins are available & does not require to jump through numerous loops
d) can use his cc
e) may be entitled to eBay bucks & cash back from his credit card.
f) doesn't give a hoot what the cost is...just wants a set of pucks
g) suspects that they will substantially increase in value over time.
I'm sure I left out numerous more, but you're welcome to add to the list.