Will the special gold eagle hurt the Mint?

A little commentary from Coin World:

https://www.coinworld.com/news/us-c...may-18-2020-mint-creates-an-artificial-rarity

 

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Another coin I'll never buy.

 

Exactly what the article says: this will sell out instantaneously and be available immediately for sale by 3rd parties for many times the US Mint price.

 

This isn't too surprising, as the mint has done this with other coins- though not to such an extent. I remember there was a special limited issue Silver Eagle not too long ago, and when I tried to buy it (for my collection), everybody swooped in, and the site wouldn't load. A whole bunch of speculators acquired it, reselling it for 5-10 times its normal price.
I just don't understand why they had to this again, when they're obviously shooting themselves in the leg. There's no expert needed to understand that.

 

No it's won't. It's going to be a hot product that gets some attention and the mintage is very fittingly symbolic.

It's going to be the exact same thing as it always it with these a big success just like the ASE was last year.

Many will complain and many of those would have never bought it anyways. Others will only be doing so for missing out because they wanted the low mintage/the coin that actually appreciates on the aftermarket for cheap, and many who complain aren't really modern collectors to begin with and so on.

Many others will be excited for a product that is desirable including people that generally wouldn't buy that series.

In the end like always it will be a big win for the mint, the series, and the hobby with the attention and excitement that gets generated around such an issue. As long as they keep just doing it every now and then and not abuse it doing it on every issue its great marketing

 

A very successful scam....sort of like that "McMillion$$$" HBO documentary I saw about the rigged Monopoly game at McDonald's !!

 

There's no scam and nothing is rigged

 

Well, as I learned on "Sanford and Son" many years ago..."maybe theoretically...but not morally."

It's like selling the Lottery to poor people as a way to get rich.

The Mint cultivates and encourages coin collecting....helps to develop and sutain a critical mass...then uses that critical mass to create inflated demand and excess profits to a small group of lucky (technologically advanced) dealers who will get a few dozen each (few hundred ?) and sell them for 25-50% over cost.

 

Easily 100% maybe 200% or even 300% over cost.

Not even a remote possibility it'll sell on the secondary market for 25%-50%.

 

The website couldn't handle the traffic for the 2019 S ERP SAE. Will it be ready for this one?

 

There's nothing immoral about it

No it's not, not even remotely close. You either get one or you don't, if you don't it costs you nothing. There is no gambling, no scam, nothing of the sort

It's a normal product offering, expect people actually want it

 

Probably right...but didn't that 2014 Kennedy gold coin soar and then flop ? Higher mintage, yeah.

 

No desire to own something this overpriced. Sellout is a definite and the price will rise but I don't care.

 

Certainly- once the hype is over, it might flop.
However, I've looked up the 2019 S burnished Eagle on ebay, and there is one auction where it has 5 bids, and the price is $940 so far (for a coin that cost just under $72, including shipping!) Quite a few of the coins have already sold for 1 grand.
So, it's hard to know what'll happen with this- maybe people will get over the hype, and maybe they'll end up paying 100 times what the coin is initially worth.
Only one thing is certain- all the speculators will cause the site to get hung up, and normal collectors won't be able to buy the coin. Lastly, of course, you'll have dealers sending out emails to random people in advance, attempting to bypass the household limit.
Interestingly enough, people like @baseball21 assert that people who complain "aren't really modern collectors to begin with". I'd really like to decode that reasoning. If all of us collect ancients for example, why would we care about the issuance of this coin? As I'm sure you've noticed, people in other categories of coin collecting don't care enough to complain- I doubt they even know it's being released.

 

Edit:

On second thought ignore me and listen to all the people complaining

 

At a mintage like that, it'll pop hard, and the value will stay high. There are way more than 1,945 collectors with OCD and plenty of cash.

 

The mintage probably insures runaway prices in the secondary market, especially since we can count on big dealers being able to subvert the household limit.

 

On the other hand, we've got the First Spouse gold series, where the Nixon and Ford uncirculated issues had final mintages under 1500 because no one cared, and they're probably still available close to melt.

 

Apples and oranges. The AGE has a decades old established collector base. The first spouse gold series was a new design that flopped.

 

To a point, yes, but the mint issued enough of them so that a collector, like me, could buy one. A mintage of 1,945 is ridiculous. This will sell out in five minutes and the flippers who get it will have a field day.

The mint shows total disrespect toward its loyal customers when it pulls crap like this. The author of this editorial is exactly right. It’s time for collectors to just say NO. I hope that the market value for this abomination equals its melt value. It would serve the flippers right.

The trouble is the flippers would return them for a refund if this impossibility were to occur. I have seen them brag about sending stuff back on the blogs when something didn’t take off in the market.