Rare Coin Company goes bust

[wwwww]

"Who can say. But if you read the articles relating to both Rare Coin Company and John Petit Banknotes there's one common factor that stands out. They both offered guaranteed buy backs and rates of return on coin/banknote purchases."

I agree. What has got both into trouble is making promises which cant be kept. Its almost impossible to guarantee a certain rate of return and its bound to fail eventually IMO. I bet the major auction houses are rubbing their hands together now that theyll be having many more top end items coming through their doors for sale.

I think if you guarantee a buy back at a certain rate of return then you're really just borrowing money from your coin/banknote customers.

and using the money 'borrowed' from new clients to pay the return to previous clients or clients who pull out. Sound familiar?

I think their failure has very little to do with numismatics.

[coxspau]

Being only 38 and still paying into a super fund, all this talk is incredibly depressing. Coupled with the fact that the govt is likely to continue to raise the retirement age, I don't see any chance of accessing my super any time before I'm 70....and that's assuming there is any super to access.

Regarding the recent closures, agreed at that guaranteed buy backs and secured rates of return sounds like a naive understanding of the market by both the company and those invested within the company.

[Sapyx]

It's not just the specific victims that will be hurting. This sort of thing tends to leave a contagious stain on the whole industry. If the only time coin dealers make the news is when they go bust or get caught ripping people off, who's going to trust them, either buying or selling?

[trout]

It's not just the specific victims that will be hurting. This sort of thing tends to leave a contagious stain on the whole industry. If the only time coin dealers make the news is when they go bust or get caught ripping people off, who's going to trust them, either buying or selling?

I am pretty sure this mob weren't coin dealers as such.
No coin dealer worth his/her salt would make such outrageous claims like this mob :ok:
I presume that this mob were something like the alpaca and ostrich promoters , NO REAL knowledge but with a canny ability to be able to make greedy or stupid people part with their cash in a "Get Rich Quick" scheme .

I do agree that when it hit the fan with this mob a lot of honest hard working coin dealers copped some of it for no reason whatsoever.
Pretty much the same as a few crooked eBayers  screw it up for the majority of honest sellers.

[robbiegal]

"Who can say. But if you read the articles relating to both Rare Coin Company and John Petit Banknotes there's one common factor that stands out. They both offered guaranteed buy backs and rates of return on coin/banknote purchases."

I agree. What has got both into trouble is making promises which cant be kept. Its almost impossible to guarantee a certain rate of return and its bound to fail eventually IMO. I bet the major auction houses are rubbing their hands together now that theyll be having many more top end items coming through their doors for sale.

i'd bet cha that there won't be any coins and I am guessing that they haven't been there all along
I am guessing it was a business that did not sit on an equity foundation but rather on hyped up values and perhaps somewhat falsified values of items that most likely had not been paid for or even in the vault

[Fulvio]

Got told today a Melbourne dealer just fell over as well. I can't recall the name though... had a few distractions afterwards and it slipped off the top of my mind into some dank recess under the couch.

[robbiegal]

It's not just the specific victims that will be hurting. This sort of thing tends to leave a contagious stain on the whole industry. If the only time coin dealers make the news is when they go bust or get caught ripping people off, who's going to trust them, either buying or selling?

I am pretty sure this mob weren't coin dealers as such.
No coin dealer worth his/her salt would make such outrageous claims like this mob :ok:
I presume that this mob were something like the alpaca and ostrich promoters , NO REAL knowledge but with a canny ability to be able to make greedy or stupid people part with their cash in a "Get Rich Quick" scheme .

I do agree that when it hit the fan with this mob a lot of honest hard working coin dealers copped some of it for no reason whatsoever.
Pretty much the same as a few crooked eBayers  screw it up for the majority of honest sellers.

they were authorised coin dealers on the RAM website

Got told today a Melbourne dealer just fell over as well. I can't recall the name though... had a few distractions afterwards and it slipped off the top of my mind into some dank recess under the couch.

wonder who that is?

[Fulvio]

wonder who that is?

How many dealers are in the city? A quick check of websites might be revealing. Or I can blast off an email I guess..

[robbiegal]

businesses go bust all the time
and they cleverly re-appear under a different trading name

there have been heaps of dealership/trading houses disappear

monoterium (? spelt wrong?) being one major one
Sherwood
probably more that I can't name

[Fulvio]

monoterium (? spelt wrong?) being one major one
Sherwood

True, though usually its more or less above board.

Didn't Monetarium become the Rare Coin Company?
And Sherwood folded into Downies?

[markn]

Didn't Monetarium become the Rare Coin Company?
And Sherwood folded into Downies?

Yes to both of those.  The ex owner of Sherwood is still trading.  I think Sherwood did not go bust.

[Fulvio]

Yes to both of those.  The ex owner of Sherwood is still trading.  I think Sherwood did not go bust.

Thanks. I didn't think I'd gone senile just yet.

[robbiegal]

change
it's always happening
but I do believe that a lot of these coin traders do get their feet into some very hot water at times

[Mister T]

Which sydney dealers have it for $40i would love to get one at that price.

Check ebay. I just saw three sellers with it listed for $39.95

[runway]

Coinworks Belinda Downie ? This high flyer would be struggling for business now is this the next Melbourne business to go bust ?