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Pierre_Henri

With all due respect ... Another zillion Mandela R5 coins on the horizon?

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Pierre_Henri

If the SA Mint strike another ten zillion Madiba 95th R5 birthday coins, I will be awe struck.

 

I will actually be very happy that Madiba made another year, but cringing for the next wave of "coin collectors" that could probably also loose all of their hard earned money in the following year or two ....

 

Mandela makes 'dramatic' progress, says daughter | News24

Edited by Pierre_Henri

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PBGold
If the SA Mint strike another ten zillion Madiba 95th R5 birthday coins, I will be awe struck.

 

I will actually be very happy that Madiba made another year, but cringing for the next wave of "coin collectors" that could probably also loose all of their hard earned money in the following year or two ....

 

Mandela makes 'dramatic' progress, says daughter | News24

 

Is the Mint minting 95th birthday coins?

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Pierre_Henri
Is the Mint minting 95th birthday coins?

 

Not sure but I think they are licking their lips in .......... anticipation.

Windfalls like this seldom land on any Mint’s doorstep more than once in a hundred years ... but if everything falls in place, they can make a killing three times in a row in just over a decade being the R5 issues of 2000 (Smiley), 2008 (90th birthday) and a possible 2013 (95th birthday) ...

And that does not even include the 1994 inaugural issue

 

Some fingers are meant to be badly burnt so I hope the Mint takes heed of the Consumers Act if nothing else.

 

Pierre

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Cold Sea

Hi Pierre

 

Dr Mtotywa from SA Mint published an interesting paper in 2007, discussing the profitability of the mint. In it he describes the mandate of the mint as to “drive costs for South African circulation coins, maximise profits from export circulation coins and maximise profits from numismatic profit centre”.

 

He found that the SA circulation coin dept was running at a loss for some periods and at low profitability during others. The profits were in the export and numismatic markets. The Reserve Bank pays the mint for the circulation coins, and as the mint is a subsidiary, their price with little or no margin is no surprise. Given this, the issuing of circulation Mandela coins might not add as much to the bottom line as we might think. (these coins will most probably be hoarded, which will cause other kinds of problems) On the other hand, if commemoratives were issued, this would be for maximum profit.

 

The Reserve Bank’s shareholder dividends are pegged at maximum 10c per share if I am not mistaken, with the balance going into government’s coffers (where else). This profit or seigniorage is derived mainly from the banknote market and is not made public for some reason. There is a group who intends suing the bank to make this public.

 

Derick

Edited by Cold Sea

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Pierre_Henri

Thank you Derick - some food for thought there.

 

I remember our Mint striking circulation coins for New Zealand a few years ago but the coins practically fell apart due to poor cladding and whatever else.

 

The SA Mint have struck coins for many many years for other countries but of late it seems they themselves are practically falling apart.

 

Pierre

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kyle2

I am willing to put 'money down' that they will be making another special issue R5 coin. Can't wait, will make a killing selling those horrible things here on BoB! :toung:

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