Friday, October 11, 2013

Between collector and investor


















Had been involving in share market trading, and seeing most trader are more interesting trading in penny stock rather than the value investor who buy the fundamentally strong blue-chip, which let me have some kind of rather similar feeling on the current local coin collection scenario.

In my earlier post on the commemorative coin issue from Bank Negara Malaysia(BNM), we can find out some interesting fact in the after market price trend of this coin.

BNM is issuing 5 types of specification of coin, normally mintage quantity is lesser for the higher price range for Single Gold or the Set of 3 with Gold Coin inside, and the cheapest with most mintage quantity is the Nordic Gold.

For this latest issued coin, the Set of 3 only have 500 set and the Single Gold only have 750 pieces circular in the market, while the Nordic Gold type have a whopping 25,000 pieces in circular.

But for the Nordic Gold coin which sold by BNM at RM10, the after market price is able to sell at RM15 to RM20 even on the same day of the coin issue date, that represent a 50% to 100% gain for the first owner. But for the Single Gold which cost RM1,800/piece I think it is not so easy to find a fast buyer for a 10% gain of value.

But just like share market, those Single Gold with only 750 pieces circular in the market, the growth of value may more sustainable than those with 25,000 pieces in circular, once all the genuine collector holding with it, may be price will be shouting high without any seller in the market.


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