Storing coins to flip

[TeaTime]

I know it's not a new thing but i've noticed lately a tendency for certain coins to command a huge premium - the Tuvalu Marvel series is a good example. The first release (Spiderman) is currently being touted around for £100+ and subsequent coins for £45-£65. As far as i am aware the mintage figures are 50,000 for each coin making them anything but rare.

I know people will state 'market forces' and suchlike, but who is it that is determining the demand/rarity - is this just a self -fulfillng spiral, ever upwards or will it turn out to be a flash in the pan like the 'elusive' US 20th anniversary Britannia ?

It's something i struggle with 🤨.

 

[Yetiwatch]

Sometimes it will just be that the series is liked and so with a smaller limit to supply, demand pushes up the price. Often this will happen with coins that fall in a number of categories, with Marvel comic book fans are also likely to pick them up, with the recent Queen, Elton John etc coins, music fans will also pick them up.

It's all down to the coins, if a lot of people like a coin, the price is likely to be higher.

[Happypanda88]

I believe there are more and more stackers out there who sees a market for certain limited editions and order them in bulk at pre-sale.

The aim is to hoard then sell at a later date for a profit. 

The 2017 Perth Mint Swan was also a good coin to flip and profit from .... provided that you ordered them at pre-sale prices. 

 

[TeaTime]

Yeh i get that and i've paid over the odds for coins i want to finish a set, sometimes 50% more than i believe it's worth. I just cannot fathom why people are willing to pay 4 or 5 times the issue price on a modern bullion coin... Then of course as they get released from peoples stacks the price inevitably drops as more become availalble. Capitalism i guess. 😁

[Happypanda88]

It is simply a case of supply and demand.

[Yetiwatch]

Value can go both ways, not buying it at 50% more could mean it may go down to 10% more or could go for 100% more. You can rarely tell which way it will go. That's why i tend to bulk buy ones i like myself, then i am happy to keep them for decades.

[TeaTime]

Agreed. 

I guess it's a speculation thing - pretty much like trading shares but with a tangible asset. I still find myself amazed at the prices some people are prepared to pay for an ounce of relatively high mintage modern silver because of a, often incorrect, perception of scarcity.

 

[Pete]

I've seen some regular bullion coins increase in price by over two times literally overnight shortly after release and then impossible to find.
Years later they are on the market at the normal price.

I recall seeing the Britannia Horse Mule sell for around £1,000 for a very short period in time, then falling to around £100 and even dipping to £50.
The Britannia privy dog was priced around £24 and today hard to find for much less than £100.
The pig privy 2019 is about £250 - £300 for a coin that normally would retail at £24 like the 2020 rat.

Another coin that rose in price very quickly was the Perth Mint Lunar Dragon, silver 1oz.
A privy version with a Lion was released so collectors were able to at least purchase the coin for their sets without breaking the bank.
The Lion was a much lower mintage and later its price surpassed the regular dragon before both dropping back to ground.

The first coin in the Canadian wildlife series - the Timber Wolf also increased in price significantly when you could not buy any.
Today it is relatively inexpensive.
Ditto the Canadian second 1.5 ounce coin - the Arctic Fox which followed the Polar Bear.
This had a 50% premium but today is not so bad.

It's all about demand, panic buying and what's written on social media.

[Happypanda88]

Yep!  Every series has its moment of fame. Once the hype is over and the next "must have" series is released, then the previous famed series is not so special anymore.

I wonder if the QB series will follow the trend !?  😎 

[Yetiwatch]

2 minutes ago, Happypanda88 said:

Yep!  Every series has its moment of fame. Once the hype is over and the next "must have" series is released, then the previous famed series is not so special anymore.

I wonder if the QB series will follow the trend !?  😎 

It they do fall out of favor, i will be happy to pick them all up on the cheap

[fehk2001]

14 minutes ago, Happypanda88 said:

Yep!  Every series has its moment of fame. Once the hype is over and the next "must have" series is released, then the previous famed series is not so special anymore.

I wonder if the QB series will follow the trend !?  😎 

if you think about it, a normal britannia bullion is around 20 pound now, then 45 pound for a QB TWO ounce is nothing much isnt

[Happypanda88]

Except the QB Lion and Griffin goes for way more ! 😮 

[TeaTime]

The Queens Beasts were / are unlimited mintages in bullion with no final mintage  figures supplied by the RM. So why are some issues commanding such a premium ?

Are some more scarce than others or are buyers being duped by dealers ? The 'rare' issues are freely available in most places but at an inflated price - this would suggest there is no actual shortage of the coins but that they are being hoarded and drip-released to create an illusion of scarcity (somewhat similar to the diamond industry).

It seems to be a common and cyclical theme - i guess when you are dealing with a relatively small profit margin item then creating a percieved scarcity/value is one way of boosting revenue ?