Interesting read... http://www.theglobeandmail.com/news...ederal-push-to-balance-books/article16141316/
Once again, bye bye collector value. They keep saturating the coin collecting world with these. What used to be rare is now plenty. I gather that even they think the price of gold will tank.
The mystery was lifted late last year when the Bank of Canada announced it would be offering 30,000 of the bank’s 246,000 coins for sale to collectors. Not all collectors were happy with the government’s decision. “They should have melted them back in 1912, 1913 and 1914,” said Frank Rossi, owner of Universal Coins in Ottawa. Mr. Rossi said collectors who already had these coins were not pleased with the sale because it drove down the value of their collections. “A market had been established,” he said. “Then all of a sudden all of these coins start appearing. … This has diluted the market. In an e-mail, David Barnabe suggested that none of the remaining coins has yet been melted. “The government is considering various options to manage the remaining gold coins,” he said, “including timelines for melting and any resale of the bullion.” If they can get more for them, they will probably select some for sale, again. Regardless of mintages, the number of these in collector hands was limited. One sale already took place, brace yourself for another. Considering the prices they just got, melting will be a last resort and for the worst condition coins.
What gives the anyone the expectation that the gubbamint should take it in the shorts for collectors? They knew the mintage when they bought, right? The expectation from the get go is that they will all sell, or why would they be made?
I read the article and got mad at the prospect of melting as well. Why woukd anyone ever melt coins? I am not hoping those who just bought them take it in the shorts, but I would vote to sell all to collectors of course. I might have bought a few this time had the prices been closer to bullion. Sell us the lesser specimens as well, and still receive better than melt. Win win.
Yeah, when that coin company needed to raise cash and couldn't find enough buyers so they smelted like 300,000 BU examples, right? You would think if they were selling these for 10% over melt there would be more than enough demand. I know I would buy a few of each denomination at a minimum at that price. I just think it would be a sin to melt 100 year old coins if not absolutely necesssary. We are not owners of these coins in my mind, merely custodians passing them along to future generations.
Uhhh, no. Until 1962 the 1903-O Morgan was the undisputed King of Morgan dollars. More rare by far than any other Morgan with maximum estimates of maybe, just maybe, 10 existing, and many doubted that number even. Then in 1962, lo and behold the mint discovered hundreds of thousands of them and released them over the next 2 years. Those who owned the few previously known examples and that had paid fortunes for them watched the value of their coins drop to almost nothing just about over-night.
Oh, duh, Sorry. I was remembering the story of the late 70's where a dealer, (NN had a series of stories from this dealer a year ago), where they needed money fast, had hundreds of thousands of a particular date in BU rolls, so had to send them to the smelter. I feel stupid forgetting how the 03 O used to more valuable than the 93 S. Didn't a dealer send a bag of these along with a current Redbook to Europe trying to cash in?
Oh there are many stories, some true and some not. Some people made money at first - back then word didn't get around as quickly as it does today - others lost a fortune. Point is similar things have happened and will happen again in the future. When it comes to the value of any coin the only certainty is that it will change. For the better or for the worse is yet to be determined.
I finally decided to get one of these coins. Canada $10 1914 I bought it from a Canadian dealer for a little over the mint sales price. The coin is uncirculated but has some bag marks. It came in a clear circular holder, a black case about 2" square, and a small box. It is interesting that while the United States produced a long run of gold coins, Canada only produced dollar coins for 1912 to 1914 and some British Sovereigns.
