Wednesday, January 6, 2016

A Koalaty Bullion Silver Coin For 2016

It's been awhile since I've strongly recommended a particular bullion silver coin on this site, but the last I recall was the 2014 1oz Bullion Silver Wedge-Tailed Eagle. That coin was available for A$29 per coin on release and now sell for well over $40 ($60'ish on ebay individually or low to mid $40's by the roll elsewhere). That is despite a drop in the spot price of silver over the same period. I have since sold the box of those I bought. So here's my next tip... lame jokes aside I think the 2016 1oz Bullion Silver Koala Coin from Perth Mint is a solid 'buy' (provided you pay a reasonable premium, under A$7 per coin over spot).

Many of the sought after, mintage limited Perth Mint bullion silver coins have held their values (or at least cushioned the blow compared with low premium products) even as the spot price has tanked in recent years. An example being the 2012 1oz Bullion Silver Lunar Dragon Coins I bought in late 2011 for circa $38-42 per coin (pre-ordered from various dealers before release), despite spot price falling some 40% lower since then I recently sold some rolls of these for around what I paid. Not a great return admittedly (break even over 4 years held), but still a far better return than on low premium silver bars. I like many of Perth Mint's silver bullion coins as a hedge against spot price downside as premiums increase with demand for the specific coin. Of course like any investment, there are no guarantees that premium holds and you do need to pick carefully.

I have not been that impressed with the koala coin designs from Perth Mint for some time. In many instances the illustration is fine, it just hasn't translated that well into coin from (the below is from 2012):

However, in my view the 2016 design is a cut above any others since 2010:

Furthermore Perth Mint is now limiting the mintage of the 1oz coin to 300,000, this is far lower than the declared mintage of some other recent years:

20071oz Bullion Silver Koala Coin 2007137,768
20081oz Bullion Silver Koala Coin 200884,057
20091oz Bullion Silver Koala Coin 2009336,757
20101oz Bullion Silver Koala Coin 2010233,531
20111oz Bullion Silver Koala Coin 2011910,480
20121oz Bullion Silver Koala Coin 2012388,046
20131oz Bullion Silver Koala Coin 2013477,209
20141oz Bullion Silver Koala Coin 2014334,884

The 2015 coin has sales recorded to the end of 2014 of 96,297, obviously that will see a substantial jump once updated with more recent numbers. I would be very surprised if the declared mintage is lower than 300,000, my guess would be somewhere between 350,000 and 450,000.

These coins:

- 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.

With the recent upgrade in facilities at Perth Mint to pump out their new low premium bullion kangaroo coin, this has resulted in higher coin sales (chart via Smaulgld) and ultimately wider distribution which I expect will bring more eyes and investor/collector interest to other bullion coin series they have, such as the aforementioned koala.

I have not purchased any myself as I'm lacking room in my safe deposit box/es, but it's likely to be the only silver bullion I buy in bulk quantities this year if I do so.


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