Tuesday, November 1, 2011

2012 1oz Silver Kookaburra to sell out at Perth Mint


After selling around 1/3 of my physical Silver position over late April and May (when spot was between around $38 and $46) I have slowly been re-accumulating some of these ounces over the last couple of months. First with the purchase of some Perth Mint 2012 1oz Silver Lunar Dragons and now just recently with a fairly signficant order for Perth Mint 2012 1oz Silver Kookaburras. I have left room for topping up should Silver dip to lower prices (I still don't think low to mid $20s should be ruled out if we see another 2008 style collapse), but I am comfortable accumulating these low mintage coins, the premiums for which (once sold out) have the potential to put a higher floor under the price of the coins even if Silver does fall further.

Although the earlier year coins (first was minted in 1990 and annually since) do not carry premiums as high as the early Lunar coins, they have gained a healthy premium over over other bullion coins and I believe there is the potential for further growth of this premium in the future. The Perth Mint has been thrust into the spotlight with their recent hugely successful Dragon releases and I expect this new found popularity has the potential to flow into their other bullion coins series.

The Kookaburra coins feature many of the benefits as that of the Lunar coins, they:

- Have a low mintage
- Sport an aesthetically pleasing design
- Are housed in individual capsules
- Have a quality finish
- Are produced by world renowned Perth Mint
- Come with legal tender status
And are priced as bullion coins on release.

Although Perth Mint has increased the mintage number to 500,000 from earlier years of 300,000 (2010 design and prior), this mintage is still extremely low in comparison to other bullion coins. For example the mintage of Pandas in 2011 is 6 MILLION (up from 1.5m in 2010 and 900k in 2009 and much lower mintages in earlier years), with these sorts of numbers it's important to ask the question whether newer Panda coins will be able to achieve the numismatic premiums that their older counterparts now enjoy.

An interesting observation on Silver Stackers recently showed that sales of coins in different localities coud result in different price results. For example on eBay Australia (.com.au) and Germany (.de) the earlier Lunar coins outperformed the same year Pandas (unless the Panas were graded), however that price order was flipped when looking at US eBay (.com) where the Pandas were outperforming the Perth Mint Lunar coins. This sort of local price action is important to consider when you are selecting bullion coins for purchase if you intend on selling them back to the local market at a later time. If located in Australia the Kookaburra could prove to be a better choice than the modern Panda given that the local population may pay a higher price for the iconic coins later down the track, especially now given their much lower mintage (2011: 500k Kooks vs 6m pandas, 2012: 500k Kooks vs ??m pandas).

Although we haven't yet seen a 'mania phase' for the Kookaburras like we have seen recently for the Lunar coins, the potential is definitely there. For a small premium over other 1oz bullion coins I would much rather stack these while I can. Reports I am getting from multiple sources is that the Perth Mint may have almost completed minting the entire 500,000 coin mintage and once sold out they are likely to achieve an insant premium, just like the Dragon (although I expect the premium to be much lower than the Dragon achieved). The 1oz Silver Kookaburra has sold out every year since 2008 and I expect the 2012 will be no exception.

Once the 1oz Kooks are sold out the only other 2012 1oz bullion coin that will be available from the Perth Mint will be the Koala (unlimited mintage until next design gets released 12 months on) and oh man does the Koala look awful this year! This was not so much the fault of the artist (see below on the left it's actually quite a nice picture), the image just doesn't translate that well into coin form (in my opinion):




Grab some 2012 1oz Kookaburras while you still can.
 
Happy collecting, investing, stacking and saving!  

BB.

 Buy bullion online - quickly, safely and at low prices

2 comments:

  1. Sir, please, please, make your site black on white. My eyes are hurting.

    Thanks for a great article.

    ReplyDelete
  2. Thanks Anon, try the feed (black on white and includes articles in their entirety):

    http://feeds.feedburner.com/BullionBaron

    or use the subscribe form in the right column to have the feed emailed to you!

    ReplyDelete