World Mint News Blog

Following the success of their “$20 for $20″ silver coin program, the Royal Canadian Mint has launched a new series which uses the same concept for a larger face value.

Orders are now being accepted for the first “$100 for $100″ silver coin, which is the initial release for the Wildlife in Motion series. The RCM indicates this is the first time in history that $100 can buy a coin worth $100.

The reverse of the coin designed by Claudio D’Angelo features three members of a herd of stampeding bison racing across the grassy prairie. The bison are pictured in profile, illustrating the movement and momentum of the massive creatures. The background shows foothills which are backed by a jagged mountain with clouds above. The inscriptions read “Canada 2013″ and the legal tender face value of “$100 Dollars”.

The obverse of the coin features the portrait of Queen Elizabeth II designed by Susanna Blunt.

The 2013 $100 for $100 Bison Silver Coin is struck in 99.99% pure silver with a weight of 31.6 grams (1.016 troy ounces) and diameter of 40 mm. The maximum mintage is limited to 50,000 pieces with a limit of three coins per household.

These coins are available for sale priced at their face value of $100 CAD. The product page can be found here.

Comparisons to $20 for $20 Silver Coins

The Royal Canadian Mint has released eight coins under the “$20 for $20″ program.

The $20 silver coins are struck in 99.99% silver with a weight of 7.96 grams (0.256 troy ounces). The new $100 silver coins are struck in 99.99% purity with a weight of 31.6 grams (1.016 troy ounces). This represents less silver content proportional to the face value when compared to the $20 coins. Five times the weight of the $20 coin would have been 39.8 grams.

The diameter of the $20 coins is 27 mm compared to a diameter of 40 mm for the $100 coins.

The finishes of the coins differ. For the $20 coins, a specimen finish is used, compared to a matte proof finish for the $100 coins.

The $20 coins have carried mintage limits of 250,000 each. The $100 coins carry a mintage limit of one-fifth the amount at 50,000 pieces. Both programs have imposed a limit of three coins per household.

The Royal Canadian Mint recently issued their 2012 Annual Report. I have previously provided a summary of overall results in this article. For this post, I wanted to specifically explore aspects of their numismatic segment which delivered stellar performance, achieving the highest revenue in the Mint’s history.

The recent success of the RCM’s numismatic segment is clearly no accident. The results are driven by an increase in product offerings which span a wide range of price points, low mintage levels which foster frequent sell outs, and targeted initiatives which have been very successful at attracting new customers. On top of these strategic factors are well conceived, often exceptionally designed, and frequently innovative coins which capture the enthusiasm of a growing base of collectors.

The numismatic and collectibles segment recorded revenue of $145.1 million for 2012, representing an increase of 56.02% compared to the prior year. The growth in this segment was in contrast to a decline of 22.11% for bullion and refinery (by far the largest segment by revenue), an increase of 11.56% in circulating coinage, and a decline of 10.88% in foreign coinage.

Although the RCM does not provide specific figures, bullion and foreign coinage are low margin segments, whereas the numismatic segment presumably delivers much higher margins. Therefore the growth in numismatic sales may have been key in preserving overall profit levels for the year. Despite a decline of more than $500 million in overall revenue, net income fell by just $3.1 million compared to the prior year.

A breakdown of numismatic revenue by region shows 76.9% from Canada with the remaining 23.1% from other countries. Growth occurred across all regions with the strongest growth in the Asia-Pacific region and the US.

During 2012, the RCM offered 136 new products. This was the most ever introduced in a single year. The RCM mentioned a “fresh focus on the customer” and “precisely targeted offers”.

More than any other Mint, the RCM seems to target the entire spectrum of demand for numismatic products from low price clad offerings to numismatic luxury items like 5 kilo silver coins and 1 kilo gold coins. The RCM also issues numismatic coins which cover a broad array of topics, ranging from dinosaurs to plants, from Canadian sporting events to anniversaries of international interest such as the Titanic centennial. Finally, in addition to more traditional gold and silver offerings, the RCM has offered innovative coins including those incorporating multiple finishes, using non traditional metals such as niobium, using glow in the dark technology, Venetian glass, Swarovski crystal elements, diamonds, holograms, colorization, and more.

While not every product will appeal to every collector, most collectors should be able to find something within their sphere of interest.

Of the 136 products released in 2012, 60 achieved a sell out. This was a new high and more than double the previous record. The RCM clearly views sell outs as strategically important and formulates pricing and mintage levels with certain targets in mind. From the annual report: “Sellouts are also important because they increase the secondary market value of our products and drive customers to our dealer and distributor partners thus supporting the business line aim of sustainable growth across all channels.”

During the year, the volume of numismatic coins increased by 89.5% to 3.6 million pieces. The number of transactions increased 75.7% to 599,000, reflecting substantial growth in the Mint’s customer base.

The RCM shared some insights into their popular Exchange $20 for $20 Program, which has offered silver coins with a legal tender value of $20, priced at their face value. One of the goals of this offering seems to be to attract new customers, where it has clearly found much success. According to the annual report, the program was responsible for capturing approximately 67,000 new customers and a great deal of these went on to become repeat customers with 49.1% making a second purchase.

Looking ahead, the RCM states that they plan to issue over 200 new products in 2013. This will include coins made with niobium and holograms. Further comments included:

“The Mint is committed to building the market for numismatic products by offering themes and designs with wider commercial appeal at affordable price points.”

“The Mint also remains committed to supporting secondary markets by balancing pricing and mintages to sellout about one-third of the numismatic coins issued.”

A pdf copy of the full Royal Canadian Mint 2012 annual report can be found here.

The Royal Canadian Mint has started accepting pre-orders from Master’s Club members for a batch of new product releases. These include the initial coins from two new series featuring Canadian butterflies and perspectives of the bald eagle. Three different coins commemorate the final moments of the battle of the HMS Shannon and the USS Chesapeake. Other new releases continue ongoing series.

At this time, the new products are only available to order by Master’s Club members. Orders will open to the general public on May 7.

A new coin series will feature Butterflies of Canada, with the Canadian Tiger Swallowtail depicted on the first release. The design depicts an engraved and colored depiction of the butterfly resting on a dandelion. As an interesting first, the box for the coin uses a lenticular design so the butterfly will appear to be flapping its wings.

Each coin is struck in 99.99% silver with a weight of 28.02 grams and diameter of 40 mm. The maximum mintage is 10,000 coins, priced at $99.95 CAD.

A silver plated 50-cent coin featuring the same design is also available with a mintage limit of 20,000 and price of $34.95.

Another new series makes its debut this month, featuring different perspectives of the bald eagle. Two months ago, the Royal Canadian Mint had released a 1/25 oz. gold coin featuring a bald eagle which seems to have been well received.

The new 99.99% pure 1 oz silver coin features a portrait of a bald eagle’s head with intricate details of its features. The coin includes edge lettering “1 OZ FINE SILVER 1 OZ ARGENT PUR”.

The mintage for this coin is 7,500 pieces with a price of $99.95 CAD. An ordering limit of two per household was imposed, and the coin is already listed as “Awaiting Stock”.

Next up is the 2013 Maple Leaf Forever 1 Kilogram Silver Coin. This massive coin has a diameter of 102.1 mm and carries a depiction of two maple leaves with selective gold plating applied. The mintage is 600 pieces, with a price of $2,299.95 CAD.

Three different coins are issued which feature an intricately detailed depiction of the final moments of the battle of the HMS Shannon and the USS Chesapeake. The coins are issued to commemorate 200 years since the famous battle and contain the dates “1813-2013″.

A 99.99% pure 5 oz silver coin is available with a mintage of 1,500 and price of $499.95 CAD. A 99.99% pure 5 oz gold coin is available with a mintage of 200 and price of $11,999.95 CAD. Last, a 99.95% pure 1 oz platinum coin is available with a mintage of 250 and price of $2,999.95 CAD.

The fifth release within the hologram maple series is the Maple of Peace coin with a depiction of an elephant in traditional dressing. Each coin is struck in 99.99% pure silver with a weight of 31.39 grams and diameter of 38 mm. The mintage is limited to 8,888 pieces the a price of $98.88 CAD.

The fifth release within the lotus shaped series celebrating Chinese Canadian history is the Blessings of Peace Coin. The design features a phoenix and a sun which bears the Chinese characters for “peace” with swirling clouds above.

Each coin is struck in 99.999% pure gold with a weight of 10.4 grams and diameter of 22.5 mm. The mintage limit is 888 pieces, with a price of $988.88 CAD.

Additional releases for this month include:

• Queen Elizabeth II Coronation 25-Cent Colored Coin
• 2013 Fishing Silver Coin
• 2013 Canadian Summer Fun 1/2 oz. Silver Coin