Jump to content
GROOVIE MOVIES

The silver Krugerrand, mintage, price and commemorative collectable

Recommended Posts

GROOVIE MOVIES

I haven't seen a post dedicated to the topic of the 50th anniversary silver krugerrand aside from mentions in other topic posts, so I thought I'd start one seeing as this being one of the most hyped coins of 2017. Yes it's true, you'd have to have lived under a rock not to have heard about the long awaited silver krugerrand, as it has drawn quite the media attention through news articles, social media and coin forums.

The coin has more often than not sparked controvercial debates amongst the bullion investor community, especially on social media like Youtube and coin forums like Kitco, with regards to it's high price and high mintage. I think the silver stacking/investor community was most vocal in their review of this coin as they were probably most excited about the release, expecting an afordable silver bullion coin as the gold krugerrand as pioneered and provided for so long. 

I would like to challenge the views the investor community have on this piece with regards to price and mintage. The problem is that they are looking at this coin as a standard silver bullion coin and it has already been well documented that this is a collector coin to commemorate the 50th anniversary of the krugerrand. No where has the South African Mint indicated that this silver piece will be an annual release, and personally I don't think silver has that much of an investor market in South Africa to warrant striking an annual bullion coin in high mintages comparable to that of the US and Australian mints.

I admit the price was hard to swallow at R600 from the SAmint for an ounce of silver, but it's not that much more than the standard R2 commemorative crowns released in low mintages annually (key word being low mintages). Anybody could be put off by the innitial price being twice of thrice bullion value, though I have mentioned this is not a standard bullion coin. The price was further inflated in the international market due to high shipping costs and distributor mark ups, not to mention the reshipment of the US lot that had to be replaced due to damages. This along with the high mintage of 'One of a million' has brought on cristism and backlash from the silver stacking community. 

All but everybody has dismissed the silver krugerrand as a dud or flop of an investment, though I'm inclined to disagree. I see huge potential in this piece and I'd go further on to say, that  I see a winning horse or may I say springbok in future. A million mintage is not that high, comparable to that of the 1952 five shilling and when you consider it globablly distributed, the idea becomes more sensable. The krugerrand is after all one of the world's most well known and recognised bullion coins (much more so than the disney coins that one person once said they would rather invest in due to the low mintage after discrediting the silver krugerrand). 

I see a winning springbok in the 50th anniversary silver krugerrand, because it's not only collectors and numistmitors that will be after them but I think all those german gold investors would be keen on them as well. If you have the entire gold kruger set, I'm sure you'd want this commemoritive piece as well? And the silver stacking community wants these pieces as well, don't let all the negative reviews fool you. They want it bad enough to be very vocal about it and once they see the price refuse to fall to bullion spot price, they will jump on the band wagon and cough up high premium prices. This is afterall a premium uncirculated coin, and what a beautiful one at that!

Share this post


Link to post
Share on other sites
dcdoberman

This super hyped up bullion coin is only worth its bullion content ,now and into the rest of eternity, if you believe in some other reality you should take a bite of reality before it bites you.

As for the fact that these bullion coins are currently being bought for more than bullion it only proves that a sucker is born ever minute.....

If you think it's pretty and deserves a premium,  well that's just like your opinion man.

I'm sorry if I hurt someone's feelings ,but this has to be said I feel in order to try and protect the real hobby and newcomers to numismatics. 

Regards

Share this post


Link to post
Share on other sites
Manfred1
21 hours ago, dcdoberman said:

As for the fact that these bullion coins are currently being bought for more than bullion it only proves that a sucker is born ever minute.....

Agree 100% ... i will rather buy any AME, Maples or Kookaburas

Have you seen the British new coins? (Queens beasts) .... note - without the "R"

Share this post


Link to post
Share on other sites
jwither
On ‎10‎/‎15‎/‎2017 at 4:34 AM, dcdoberman said:

This super hyped up bullion coin is only worth its bullion content ,now and into the rest of eternity, if you believe in some other reality you should take a bite of reality before it bites you.

As for the fact that these bullion coins are currently being bought for more than bullion it only proves that a sucker is born ever minute.....

If you think it's pretty and deserves a premium,  well that's just like your opinion man.

I'm sorry if I hurt someone's feelings ,but this has to be said I feel in order to try and protect the real hobby and newcomers to numismatics. 

Regards

You summed up my sentiments.  A mintage of one million is low?  Give me a break.  There is also no comparison to the 1952 Crown because the survival rate on the silver KR will approach 100% decades from now while the 1952 Crown's is very low in a quality most collectors want to buy, as in probably less than 10,000..

The last time I checked the NGC census, the count was about 87,000.  If every single other one was melted and ceased to exist forever, it would still be incredibly common as a collectible coin.  For anyone who doesn't believe me, go look at the NGC and PCGS population counts for the US Morgan dollar where a few have similar or higher totals. This is a real collector coin.  Now go look at the prices.

After this reality check, does anyone still believe it has financial potential?

In a prior post, I mentioned that I thought the silver KR would sell well to foreign buyers.  However, I wasn't aware of the premium.  At $50+ USD, it isn't going to be competitive longer term and I have no idea who is buying all the graded coins.  Presumably uninformed "investors".

Share this post


Link to post
Share on other sites
Mike Klee

To illustrate the fact that foreign buyers aren't prepared to pay the huge premium demanded for the silver Krugerrand, I had an enquiry today from a top-notch game reserve in Alicedale, Eastern Cape. An American guest staying there had wanted to buy some silver Krugerrands, but was so horrified by the price (R750) quoted at a well-known Port Elizabeth coin dealer that he thought that they had made a mistake and was asking elsewhere. When I confirmed the situation re the selling price over the actual much lower silver bullion value, I was advised that the American would be returning to the USA without any silver Krugerrands.

Share this post


Link to post
Share on other sites

Please sign in to comment

You will be able to leave a comment after signing in



Sign In Now

×