Perth Mint NCLT Issue - 2004 Eureka Stockade Silver Locket Dollar
This article is continued from Part 1, and is concluded in Part 3.
3. NCLT Can Maintain the Interest of New Collectors
As a collector of higher grade pre-decimal coins and quality error coins I purchase new coins for my core collection quite infrequently, perhaps not more that 10-12 coins a year. Personally I am fine with this, but to a new coin collector this slow rate of new acquisitions can be frustrating and result in a loss of interest. However, if, like most new collectors he or she is collecting NCLT then whatever he or she wants to complete a collection is almost always available through a coin dealer or on eBay. Couple this with continual stream of new and interesting products being released by the RAM/Perth Mint and the new collector can easily maintain a high level and interest and enthusiasm for the hobby as they are becoming more and more educated.
4. NCLT Sets ere Obtainable within a Reasonable Time and Budget
I have started some sets of pre-decimal coins I will not finish for many years, other collectors have sets they have been working on for 20-30 years or more. And they are still looking! And even if all the coins for a particular set are readily available the cost is often hugely prohibitive. Take the example of completing a mid-grade penny set, most of the coins can be had in mid to low grades for under $20, while the 1946 and 1925 penny for less than $200. However, the king of pennies, the 1930 in just Fine will set you back $20,000 or more. It's not that they are hard to get, there are a few dozen on the market in any one year, they are just nightmarishly expensive. Obviously the new collector is going to be easily frustrated by taking so long to complete a collection or the huge cost involved and may be lost to the hobby.
Collecting NCLT sets is almost always a lot quicker and a lot less expensive. For example, collecting a full set of Australian dollar coins by mintmark might be the task of a couple of years but the most expensive coin will just be $250 or so for a Victoria Cross dollar and the collector will be able to complete the set just by buying from eBay or from coin dealers. Shorter sets like the coloured wildlife dollars, or all the Australian proof sets, or perhaps the Perth Mint Famous Battles set can be completed much more quickly.
5. NCLT Provides an Inexpensive, Liquid and Educational Market for the New Collector
One of the biggest lessons the new coin collector must learn is that the condition and grade of coins is all important, that there are very few cheap AND good coins available, and that they must learn to focus their collecting habits. NCLT provides a fairly inexpensive and simple method for the new collector to learn key lessons in this area. Firstly, while NCLT by it's nature is almost always top grade, the new collector will find quickly that damaged packaging, missing boxes, and lost Certificate of Authenticities will negatively affect the worth of their collection. Secondly they'll find the sheer scope of NCLT releases means that they probably won't want to or be able to afford to collect everything. With such a strong secondary market for NCLT the new collector can easily dispose of coins that no longer interest them and gain valuable experience with actually selling their coins and understanding the difference between retail value of coins and the value you can actually sell them for. Sometimes the difference can be very shocking AND educational!
6. NCLT Gives Dealers a 'Cash Cow' to Allow them to Remain in Business
Selling a 1930 penny must be a rush, selling an Adelaide pound must be a thrill, and being able to supply a top PCGS graded florin to an advanced collector must be a satisfying and profitable experience. However, while the profits from such sales might be large, the volume is tiny. After all, how many people can afford a 1930 penny? And how many of those actually buy one? Not many. There's no doubt that the RAM and Perth Mint NCLT market is a large one, there's a lot of collectors of this material and new collectors buying it all the time. The market is easily accessible to the average coin dealer, there's no coin grading to worry about, no real storage worries, and a lot fewer eccentric and difficult collectors in the NCLT market. I would imagine that it's really just a pretty easy way of garnering some profits to help cover the bottom line of running a bricks and mortar coin shop. Without those NCLT based profits you might find your average coin dealer just can't survive and the more advanced collector has one fewer source of high grade or interesting pre-decimal coins to fuel his or her addiction.
This article is continued in Part 3.
Posted by mnemtsas at June 13, 2010 6:47 PM
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