Royal Canadian Mint: The First Gold Coin
Submitted by Compugasm on May 4, 2007 - 21:36
I have trouble understanding why people spend outrageous sums of money, on collectable coins. A dollar has almost no value. In fact, it costs 1.4 cents to make a penny, and 5.3 cents to make a nickel. It costs more than the denomination. The coins aren't really valuable, and lots are "accidentally" created with mistakes all the time to give them value they don't have. What idiot would pay $50 for a coin worth $1? These would be people into coin collecting, and understand that scarce coins appreciate in value. Or, at least want to keep that belief going.
Here's a financial report (.doc file) from the U.S. Mint where you can see the mint's interest in producing "collectible" coins all over the place.
An unknown number of new George Washington dollar coins were mistakenly struck without their edge inscriptions, including "In God We Trust," and are fetching around $50 apiece online.
I understand collecting coins for aesthetic value. What I don't understand, is the seemingly arbitrary way these coins are valued because of misprints or whatever. It's got to be some kind of government conspiracy. I admit I'm not a smart investor. Because I think the smart investor would buy beanie babies. But, what about the rest of us, who can't afford to spend $50 on a $1 quarter? Well, the Super Unit 5000 marketing team has come up with the solution for you, collectable coin trading cards.
Why not trading cards? It's worth more than a dollar and will appreciate! A dollar in your pocket loses buying power everyday. Look at the history of buying power of the U.S. paper dollar, and tell me again why I should speculate on the value of that dollar? Since when is 50 dollars, for 1 dollar a good deal? The dollar will always go DOWN in value over time. When I was a college student, 15 years ago, $1 would buy a gallon of gas. Today that $1 will buy less than a third of that, diluted with additives no less. You might be able to finish mowing your lawn with that much.
Worries about cashless societies are valid - although overblown. The risks can and should be addressed, but it shouldn't prevent us from advancement. As it is, most bills/expenses are paid without cash (refueling your car, paying the bills, food shopping, etc.) - unless you prefer to walk around with a huge wad of cash on your person. Recent dollar coins have always been playing second fiddle to the quarter. The closeness of the size between the dollar and the quarter has always negated its acceptance by the American public. The US mint needs to take a cue from the British Royal Mint. The one pound coin is distinctly different from the 10p (similar in size to the US quarter). Its brass, thick, and of a different size. Speaking of different sized coins:
The Royal Canadian Mint introduced the world's first 100-kilogram gold coin Thursday. It will make only 10 and it sold three within hours of introducing the coin. Listed as 99.999 per cent pure gold bullion, the big coin has the purest gold of any coin. It has the Queen on one side and three maple leaves on the other, and is mainly a promotional product to give the mint a higher international profile.
"We wanted to raise the bar so that we could say the government of Canada or the Royal Canadian Mint produced the purest gold coins in the world" said David Madge, the mint's director of bullion and refinery services. The coin, which takes about six weeks to make, has a face value of $1 million, but it sells for about $3 million, depending on the market value of gold. The tire-sized coin is a little over 50 centimeters in diameter and about three centimeters thick.
I declare Canada the winner. Congratulations, beyond a doubt, you make the purest gold... wow. Wasn't there talk of getting rid of pennies altogether? Now look, they've gone and made giant pennies too inconvenient to carry now. No, I'm afraid this just won't do. I find it funny that it's actually valued at 3 million, but it's only a 1 million dollar coin. Look at me, I'm so rich, I'll throw away 3 million dollars, on something that's only worth 1 million. But, if they really wanted to make money valuable, they'd make trading cards out of them.