1kg RM silver coin denomination

[jockmahon]

Can some one help me understand the £500 pound denomination on the 1kg silver coin?

 

It's about 1/2 the price of the silver

However compared to the 10oz with only £10 denomination

So 

£1000 coin price= £500 fv

£300 coin price = £10 fv

 

Like if I was a conspiracy theorists I would say all the elites buy up the 1kg coins and then reset the currency and boom 

[PhilOdgny]

My take on this is that they give the coins a fiat value so they are CGT exempt but they haven't developed a consistent method for determining the value ... or the value is simply down to what is good for marketing.

The fiat value will always be much lower than the spot value of the metal to account for market fluctuations over a fairly long term as they don't want people to be tempted to melt them down ... as happened with some UK circulating coins a while back forcing them to change the metal used.

In any case, I don't think they mint enough 1kg coins to satisfy the demand of the elites if that was the game.

[Subspecies]

Deleted 

Edited October 27, 2023 by Subspecies
Deleted

[jockmahon]

16 minutes ago, PhilOdgny said:

My take on this is that they give the coins a fiat value so they are CGT exempt but they haven't developed a consistent method for determining the value ... or the value is simply down to what is good for marketing.

The fiat value will always be much lower than the spot value of the metal to account for market fluctuations over a fairly long term as they don't want people to be tempted to melt them down ... as happened with some UK circulating coins a while back forcing them to change the metal used.

In any case, I don't think they mint enough 1kg coins to satisfy the demand of the elites if that was the game.

Ok fair enough 

Counter point is that they are quite consistent with the denominations

1oz gold

1oz plat

1oz silver

2oz silver

Are all very close to 1/12 the coin price

 

It is only the 10oz silver and 1kg that are out of wack

10oz being about 1/25 and

1kg being able 1/2 

[jockmahon]

Also what marketing? Silver 1kg are hard to find even on RM site

[PhilOdgny]

4 minutes ago, jockmahon said:

but they haven't developed a consistent method for determining the value

This was already included in my initial response.  I think this is a standard case of "the left hand doesn't know what the right hand is doing".  There may be something more sinister going on but personally I doubt it.

[27carrots]

1oz britannias came out when spot was about £3 so £2 was the appropriate amount.

If they released a 1kg coin at the same time, they would have made it £50.