If you are Malaysia Commemorative Proof Coin collectors, I am pretty sure that the recent soaring of gold and silver commodity prices may catch you eyeballs. Some collectors seem extraordinarily excited with the assumption that the recent price hiking of precious metal brings some fortunes to their collection. However many of us did the calculation about how much the value gain we manage to grab from recent market trend?
Lets take the simple simulation, assume that you bought a piece of The Installation of Agong XII RM10 Commemorative silver coin in Apr 2002 with the following specification:
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Metal Composition: 92.5 silver proof
Weight: 21.70 grams
Mintage: 10,000 pieces.
Face value: RM10
Issuance Price: RM120
How much the silver value of the coin above:
Silver commodity price = USD 29/oz (as 07/08/2020)
1 USD = RM 4.19 (as 07/08/2020)
Silver value = (21.7/31.1) x USD 29 x 0.925 = USD 18.72
USD 20.53 x 4.19 (RM/USD) = RM78.42😕😕
Thus the silver value of the coin is still lower than its issuance price at RM120 in 18 years ago. The value analysis above do not take into account the collective value.
Reversely, if you bought The Installation of Agong XII RM100 Commemorative gold coin in Apr 2002 with the following specification:
(photo from Steemit.com)
Metal Composition: 999.9 gold proof
Weight: 8.60 grams
Diameter: 22.00mm
Mintage: 200 pieces.
Face value: RM100
Issuance Price: RM800
Weight: 8.60 grams
Diameter: 22.00mm
Mintage: 200 pieces.
Face value: RM100
Issuance Price: RM800
How much the gold value of the coin above:
- Gold commodity price = USD 2070/oz (as 07/08/2020)
- 1 USD = RM 4.19 (as 07/08/2020)
Silver value = (8.6/31.1) x USD 2070 = USD 572.42
USD 572.42.53 x 4.19 (RM/USD) = RM 2398😁😁
Thus the gold value of the coin is 300% higher than its issuance price at RM800 in 18 years ago. The value analysis above do not take into account the collective value.
So, what is the conclusion?
The simulation above tells you the answer.
