Author Topic: Royal Mint Buys Minority Stake in Sovereign Rarities  (Read 893 times)

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Offline Bimat

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Royal Mint Buys Minority Stake in Sovereign Rarities
« on: June 26, 2017, 08:09:39 AM »
Royal Mint buys minority stake in coin dealership Sovereign Rarities

Deirdre Hipwell
June 26 2017, 12:01am,
The Times

The Royal Mint has bought a minority stake in a coin dealership in Mayfair as it seeks to expand its growing interest in the market for old currency.

It is the first time that the Mint has taken a stake in a dealer in historic coins and the stake in Sovereign Rarities signals its intention to use its brand across the coin-collecting market, according to the Antiques Trade Gazette.

It also will enable the Mint to offer a full range of historic coins, across all periods of British coin production, including some that are thousands of years old. The Royal Mint was established under Alfred the Great in 886. Today it operates as a limited company owned solely by the Treasury.

Alongside supplying all coinage for the UK and other issuing authorities worldwide, the Mint has a growing number of commercial interests, including a bullion trading website, a visitor centre at its headquarters in Llantrisant, south Wales, and a modern commemorative coins business.

It has a small interest in the historic coin market, but typically it has been confined to 19th and 20th-century issues and proof sets. However, the Mint wants to expand its activities in the coin-collecting market, which is a multibillion-pound business worldwide, after expressions of interest from coin-collecting customers.

Anne Jessopp, director of commemorative coin at the Mint, said that the deal with Sovereign Rarities was a “collaboration [that] supports the strategic direction in which the Royal Mint is keen to progress”.

After the five-year deal, the Mint will have access to Sovereign Rarities’ specialist expertise and its ability to source historic English coins. The Mint also will appoint a non-executive director and will receive an annual dividend.

Ian Goldbart, who launched Sovereign Rarities a year ago, said that the deal had come about after he visited the Mint to discuss the old coins markets six months ago.

Source: The Times
« Last Edit: June 26, 2017, 08:19:54 AM by Bimat »
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Offline Bimat

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Royal Mint Buys Minority Stake in Sovereign Rarities
« Reply #1 on: June 26, 2017, 08:10:55 AM »
Please note that the remaining article is available to read only after subscription. If anybody has the subscription for The Times (UK), please post the complete article. :)

Aditya

Edit: Thanks to Niels, I have now added the missing in part of the story in my original post.
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline eurocoin

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Re: Royal Mint Buys Minority Stake in Sovereign Rarities
« Reply #2 on: June 26, 2017, 08:17:24 AM »
The missing part:

Alongside supplying all coinage for the UK and other issuing authorities worldwide, the Mint has a growing number of commercial interests, including a bullion trading website, a visitor centre at its headquarters in Llantrisant, south Wales, and a modern commemorative coins business.

It has a small interest in the historic coin market, but typically it has been confined to 19th and 20th-century issues and proof sets. However, the Mint wants to expand its activities in the coin-collecting market, which is a multibillion-pound business worldwide, after expressions of interest from coin-collecting customers.

Anne Jessopp, director of commemorative coin at the Mint, said that the deal with Sovereign Rarities was a “collaboration [that] supports the strategic direction in which the Royal Mint is keen to progress”.

After the five-year deal, the Mint will have access to Sovereign Rarities’ specialist expertise and its ability to source historic English coins. The Mint also will appoint a non-executive director and will receive an annual dividend.

Ian Goldbart, who launched Sovereign Rarities a year ago, said that the deal had come about after he visited the Mint to discuss the old coins markets six months ago.

Offline Bimat

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Royal Mint Buys Minority Stake in Sovereign Rarities
« Reply #3 on: June 26, 2017, 08:21:12 AM »
Thanks! I amended my original post so that it becomes easier to read the complete story. 8)

Aditya
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Offline eurocoin

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Re: Royal Mint Buys Minority Stake in Sovereign Rarities
« Reply #4 on: June 26, 2017, 08:22:00 AM »
So.. there are dozens of coin dealers who have been in business for many years and the Royal Mint decides to buy a part of a company that only exists 1 year..

Offline Bimat

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Royal Mint Buys Minority Stake in Sovereign Rarities
« Reply #5 on: June 26, 2017, 08:25:29 AM »
So.. there are dozens of coin dealers who have been in business for many years and the Royal Mint decides to buy a part of a company that only exists 1 year..

Exactly! Royal Mint is run by tax payers' money and this is not a good way to invest/spend their money since it's a risky business...

Aditya
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline Figleaf

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Re: Royal Mint Buys Minority Stake in Sovereign Rarities
« Reply #6 on: June 28, 2017, 03:24:16 PM »
If the UK mint has too much cash, it should turn it over to the shareholder: the government. The mint is not an investing company and it is hard to present any surplus cash as a reserve, since demand for circulation coin should be falling.

It would be quite another thing if this is a preparation for splitting off and privatising the windy commercial business from the circulation coin business. As the article notices, there are other commercial interests also.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline Bimat

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Royal Mint Buys Minority Stake in Sovereign Rarities
« Reply #7 on: June 30, 2017, 05:03:16 PM »
Royal Mint may start dealing in rare coins

By Emma Woollacott  30 Jun 2017, 12:21
Updated: 30 Jun 2017, 12:21

If you're scratching your head over whether one of the coins in your purse is rare and valuable, you may soon be able to ask the Royal Mint for help.

It's decided it would like to move into the coin-collecting market and, says Antiques Trade Gazette, has bought a stake in Mayfair coin dealership Sovereign Rarities.

It's the first time that the Royal Mint has bought into a coin dealer; and it's refusing to give any details, saying only that it will in future be able to offer 'a wide range of historic coins across all periods of British coin production'.

Sovereign Rarities mostly values and sells 19th and 20th century coins, although it does handle historic coins too.

"We have a great deal of experience in both researching and cataloguing and have been responsible for a number of world record prices," says the firm.

"We are always keen to buy either single numismatic items or whole collections, and are able to offer direct purchase, auction, or private treaty."


Taking a stake in the firm is a clever move for the Mint, allowing it to take some of the profit from sales of coins which it generally produced in the first place.

"The collaboration with Sovereign Rarities Limited supports the strategic direction in which The Royal Mint is keen to progress," Anne Jessopp, director of consumer coin at the Royal Mint, tells the Sun.

"Both our businesses will be working to accelerate opportunities within this specialist area."

There are currently plenty of places to get coins valued and sold, but none with quite the history of the Mint itself. If you think you may have a rarity, your first point of call might well be a website like ChangeChecker or Check Your Change.

And over the last year, we've listed some of the rarities and errors that can make the coin in your pocket worth way more than its face value. There's a list of some of the more valuable 'error' coins here, for example, with the most valuable £2 coins here and £1 coins here.

But be warned: coins are usually only valuable to collectors if they're in perfect condition - and many wrong-looking coins are simply fakes.

Source: AOL
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline Figleaf

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Re: Royal Mint Buys Minority Stake in Sovereign Rarities
« Reply #8 on: July 02, 2017, 12:45:49 PM »
It seems strange that nobody has picked up on the fact that this is an open door to conflicts of interest also. Some examples.

What if "Sovereign rarities" gets new issues delivered first? Google has just been ordered to pay a huge fine for doing something similar, but soon, UK companies will no longer be subject to EU law.

What if "Sovereign rarities" gets a discount on unsold stocks not available to other dealers? What if in practice the Mint is willing to take unsold coins back from "Sovereign rarities", but not from any other dealers? What if "Sovereign rarities" stocked up big on a coin, then asks the mint to hype this coin like they did on the "Kew gardens" type? What if "Sovereign rarities" offers errors? Have they slipped through quality control, or are they produced on demand?

What if they deny any of the above? Why should I believe them?

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.