When swimming, scuba diving or snorkeling in the ocean, dive-masters and lifeguards often caution those in the water not to wear shiny rings or other jewelry. The reason is the attraction barracudas have for glittery objects. Swimmers have been known to suffer severe bites or even lose a finger when such a fish lunges to feed on the sparkly item.
Humans may not attack and bite but we seem to have a similar voracious compulsion for sparkly things that get our attention. Evidence of that is in the large full- or half-page ads seen in major magazines or newspapers for attractive silver or gold-tinted coins. These are usually accompanied with tantalizing copy including adjectives the likes of “rare,” “limited-edition,” “exceptional,” “collectible,” “sought-after,” and other compelling words meant to lure us in....
A few weeks ago, a full-page ad ran in a major daily newspaper extoling the properties of a “massive” pure silver coin weighing a full kilo – over 32 Troy ounces. That’s over two pounds. The coin features the image of a herd of buffalo coated in gold. The ad states only 199 of the oversized seven-inch coins were to be minted. In the collecting world, that’s a ridiculously low number.
The ad said the coin was in a “tamper-proof holder” and housed within a mahogany-finished display case. It admonished readers to “CALL NOW!”
Oversize items such as these aren’t unique. Many companies make such coins to appeal to our fascination with all-things-big. Oftentimes, those items aren’t actually coins. To be a coin it has to be issued by an internationally recognized country/entity and contain a denomination. In this case, the coin had a denomination of 25-dollars and was issued by the nation of Samoa – a small Polynesian island country known for lots of things. But not buffalo. Still, it is technically a “coin.”
Samoa has issued other such massive coins. This past year they released a $25 silver kilo coin featuring Harry Potter flying on a broom. It had an antique finish with detailed images. It was also limited to only 199 being struck. In 2022, Samoa created yet another oversized coin honoring the Lincoln Memorial in Washington DC.
At today’s prices, the silver content of these or any kilo coin translates to about $750. Of course, because lots of work goes into the design and production, they sell for a premium. The cost for the Harry Potter Samoan coin was originally $2,799 but is now promotionally discounted to just $2,399 –roughly $1,650 over the silver melt value.
Some people with exceptionally deep pockets may have an ardent love for Harry Potter, the Lincoln Memorial or buffalo. It’s the value that’s in question. For that, the source I went to was recognized coin dealers.
Several I spoke with in the Midwest agreed the hefty size of the items was impressive. However, they pointed out the gold on the buffalo coin was “unrecoverable” so it accounted for no resale value. They also said, unlike silver bars or rounds, the silver in the coin was “off brand” aka unrecognized. Ergo, they couldn’t even pay the current $23 per ounce spot price but rather just $21 an ounce.
For silver investors, they suggested 10-ounce or 100-ounce silver bars. Those too contain pure silver but sell for just a bit above the current spot price of silver. For instance, for $2,200 – roughly the cost of one of the limited-edition 32-ounce silver coins – an investor could purchase a 100-ounce bar of pure silver. No, it wouldn’t include an image of Harry Potter or a Buffalo but would be of eternal interest to precious metals buyers.
Another thing the dealers pointed out was something that directly affects them. When the owner of one of these “souvenir” coins goes to sell it to a dealer, the price they usually pay is only the “melt” value. Their market for coins from Samoa or really any other small entity is, in their words, “non-existent.” Hence, they only pay the silver price which, in turn, makes the coin’s owner angry at them for “lowballing.” The fact is, that dealer may sit on the coin for a year or more hoping to sell it.
This isn’t unique to silver coins. There are lots of such items with subject matter that appeals to our sentimentality. The question is whether it’s worth the same price to someone else as it is to you. The best answer for that will come from a reputable local dealer before you buy.
For more collecting information and advice, log on to: http://prexford.com/.