$100 coin for $100 (Buffalo design)
nibanny
Posts: 2,761 ✭
...they call it Bison! Or are they different animals? 
One ounce of Silver for CA$100 shipped to your door. 50,000 mintage and limit of 3 per household.
What say you? Flipper item, cool first issue, overpriced silver coin?
One ounce of Silver for CA$100 shipped to your door. 50,000 mintage and limit of 3 per household.
What say you? Flipper item, cool first issue, overpriced silver coin?
The member formerly known as Ciccio / Posts: 1453 / Joined: Apr 2009
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Comments
There is a lot of game theory going on here. And maybe something more.
From the outside, you have nothing to lose: $100 for $100.
But these are non circulating legal tender (NCLT). And Canada plays their NCLT card differently than you might expect.
Long and short: They'll probably be good pieces to flip.
But if someone told you they'd sell you a pretty modern one ounce silver bullion coin for $100, when the price of silver is ~$25, would you take it?
I know I wouldn't.
--Severian the Lame
<< <i>These recent Canadian pieces with precious metals and face values at issue price are kind of deceitful.
There is a lot of game theory going on here. And maybe something more.
From the outside, you have nothing to lose: $100 for $100.
But these are non circulating legal tender (NCLT). And Canada plays their NCLT card differently than you might expect.
Long and short: They'll probably be good pieces to flip.
But if someone told you they'd sell you a pretty modern one ounce silver bullion coin for $100, when the price of silver is ~$25, would you take it?
I know I wouldn't. >>
If it's "legal tender for all debts, public and private" like in the US, someone has to take it for a debt owed denominated in the host currency; they are NOT obligated to take it for a transaction under negotiation.
If the rules are different in Canada, expect a potential "scandal" someday. If same rule applies, someone is taking a risk. The US set the "face value" comfortably low, in case someone someday drags an asteroid back to Earth, or discovers ways for a solar still to extract free gold from seawater, for example (not next year probably, but any of us might live to see either, IMO)
Liberty: Parent of Science & Industry
It means that it will be hard to spend them.
The Canadian Govt on the other hand has already demonetized the Olympics coin back in the 80's.
It is curious that the RCM has raised the face value following the Monnaie de Paris even though they are not linked to the metal content.
I am expecting other mints to follow them.
Michael Kittle Rare Coins --- 1908-S Indian Head Cent Grading Set --- No. 1 1909 Mint Set --- Kittlecoins on Facebook --- Long Beach Table 448
I think the design is uninspired.
I'd be interested to hear of flipping results. 50k mintage seems like a lot.
I don't understand how Canada minting coins that say '$100' on them that aren't really/easily good for that is good though.
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
$38 coin, $62 premium is all.
Michael Kittle Rare Coins --- 1908-S Indian Head Cent Grading Set --- No. 1 1909 Mint Set --- Kittlecoins on Facebook --- Long Beach Table 448
<< <i>Well the US makes a one dollar coin with about five cents worth of Magnesium ..what s wrong with making a 22 dollar silver coin that's worth 100 dollars. I would not call this bullion, I think its more like Money should be ..JMO >>
But, it's not money. Unlike regular Canadian currency, nobody is obliged to take it as payment and even banks
will not exchange it for Canadian currency.
It is not quite money.
One thing I can say positive about the new $100's is considering how fast they sold out (One day I think, 50k at a 3 coin limit) does show a strong interest in Canadian coins. When the herd figures out what's scarce my mini hoard of 1914 $5's should take off.
If they'd put a "face value" of $5, or maybe $10, it seems unlikely people would ever spend them--even if silver dipped below those values.
But put a $100 face value on it, people are going to consider spending them. And that may ultimately be their undoing. Maybe not this issue, and maybe not the next one. But eventually, if enough people try to spend these at face.
So the gimmick that the Royal Canadian Mint is using to lure people into buying these pieces of overpriced bullion may eventually lead to their demise.
If I were Canadian and I'd bought one of these, I'd contact the attorney general or its equivalent. It looks an awful lot like outright fraud to me.
--Severian the Lame