When the U.S. Mint introduced it was including a .9999 gold bullion coin to its line of gold cash, it seemed like a “golden alternative” for the Mint to seize a giant chunk of 24-karat gold coin market. When laws was handed mandating that the brand new coin bear James Earle Fraser’s designs that graced the legendary Buffalo/Indian Head nickels from 1913 by 1938, the brand new coin’s future seemed even brighter.

Nonetheless, on launch of the brand new Buffalo gold coin, the Mint’s golden alternative has became a nightmare on the retail stage. Whereas the coin itself is kind of hanging, having a matte end and utterly capturing the Fraser designs, the packaging makes the cash a nightmare.

Though the majority of the blame might be laid on Congress for making an attempt to “micro-manage” manufacturing and distribution of the cash, the Mint ought to settle for its share of the blame for the selection of packaging, having not thought of, the retail points of the packaging.

Congress mandated that the cash be individually encapsulated to guard them from injury, apparently to keep away from issues which have risen with 1-oz.Gold Maple Leaf cash. Additional, Congress mandated that the Mint have the cash prepared for distribution by the top of June. To fulfill the deadline, the Mint had to decide on a way of packaging that was available and that might accommodate anticipated giant quantity gross sales.

The Mint selected a semi-rigid Mylar packaging, 5 cash horizontally with 4 cash down, making twenty cash to a sheet. With huge spacing between the cash, a “sheet of Buffalos” measures twelve inches by sixteen inches. The packaging causes a number of issues.

Due to the rigidity of the Mylar, a sheet can’t be folded right into a tall bundle. Orders for lower than twenty cash have to chop out of the sheets for the cash to be packed compactly, which is desired–and expected–for gold bullion cash.

Undoubtedly, the semi-rigid packaging for the Buffalos was meant to supply sturdy safety. Nonetheless, the Mylar is so inflexible that an authentic sheet of twenty Buffaloes can’t be conveniently saved. A sheet of twenty might be rolled like {a magazine} after which rubber-banded, however then storage would take a number of house. Whereas the smallest of secure deposit packing containers will maintain a whole lot of 1-oz.Gold Eagles as a result of they arrive in compact tubes, maybe solely sixty or so Gold Buffalos would fill a small secure deposit field.

One other downside that has surfaced: The cash readily come out of their protecting sheets when dealt with. This implies the cash then must be transferred to a tube or to particular person plastic sleeves, that are used so typically for single coin purchases. Or, the Mylar might be mended with Scotch tape, hardly a horny answer.

Due to the issues which have arisen with the packaging, Buffalos is not going to attraction to many giant bullion consumers however to collectors, who might want only some cash. Traders who ordered Buffalos with out data of the packaging have been dissatisfied. With the current packaging, it’s unlikely the Mint will seize a lot of the .9999 high quality bullion coin market.

Whereas the Mint might level to early strong gross sales, new cash practically all the time get pleasure from sturdy early gross sales. And, with the favored Buffalo/Indian Head design, undoubtedly Buffalos will stay favorites of collectors and other people searching for presents. Nonetheless, the Buffalos have been launched to go after the .9999 high quality gold bullion coin market, the place buyers make repeated orders. So, the take a look at for the Buffalos will come within the months forward once we be taught if buyers make second and third orders for Buffalos.

It’s the opinion of this 32-year veteran of the gold bullion coin market that if the U.S. Mint doesn’t make modifications in Buffalo packaging, gross sales will erode over time, and the Mint will miss a golden alternative to seize a giant piece of the pure gold coin market, which is now dominated by the Royal Canadian Mint’s Gold Maple Leafs.

The answer to the issue is for the Mint to vary the packaging as quickly as potential, considering how giant buyers are more likely to retailer the coins–in secure deposit packing containers. For buyers who don’t retailer in secure deposit packing containers, compactness turns into much more essential, because the cash have to be simple to hide. The Mint appears to have utterly ignored this side of the market.

Moreover, the Mint must understand that the cash must be dealt with by bullion coin sellers who ship the cash to the ultimate buyers. The current packaging causes twenty-coin or bigger orders to be shipped in giant packing containers, including to transport prices. The big packing containers may require extra journeys to the Publish Workplace. It additionally will increase the price of dealing with for orders lower than twenty cash, as they must be lower out of the sheets.

Since Congress mandated that the cash be individually encapsulated, the Mint ought to go along with laborious plastic capsules similar to these utilized by The Perth Mint. Then the capsulated cash ought to be put ten to a tube, offering compactness for ease of storage. That may additionally facilitate dealing with by coin sellers.

To right the problem–and actually go after the .9999 bullion coin market–the Mint ought to encapsulate the cash individually and put them in tubes of ten. Then ten tubes ought to be put in small, sealed, and sturdy packing containers. And, lastly, 5 small packing containers of 100 cash ought to be put in a bigger field of 500, which is how the Mint ships its best-selling Gold Eagles. Packing containers of 500 are widespread with giant buyers, and the packing containers of 100 can be enticing to medium-size buyers.

Packaging the brand new Buffalos this fashion would facilitate storage and dealing with each for buyers and for retail sellers. The Mint must assume retail with its packaging, to take into accounts how buyers retailer, and to consider the bullion sellers who deal with the brand new Gold Buffalos in delivering them to pure bullion coin buyers.

Source by Bill Haynes