One Coin is worth $1,000,000
The Coin
The Perth Mint has just revealed its newest coin, a coin with a face value of 1 million dollars.
The coin itself is made from 99.99% pure gold and weighs 1012kg, making its gold value around $55 million dollars.
One side has a Kangaroo and the other the Queens head.
Ed Harbuz, the chief executive of the Perth Mint, said that the making of the coin was quite a challenge and had been made as the showpiece for the Kangaroo Gold Bullion coin program which coincided the making of this coin with the release of other smaller gold coins.
There was only one coin made, so don’t bother looking for one in your change.
Waste
Many people have criticized the minting of this coin.
Peoples’ criticism is based on the fact that they believe it to be a waste of money. They protest that $55 million could have been better spent feeding the hungry or housing the poor.
At first I had similar thoughts but after thinking a little longer, I changed my mind and now believe that this is perhaps a thought of genius, a win, win concept.
First of all, gold isn’t used to buy things on the street; it is kept in vaults to back up the regular money that is printed and so why not in the form of a coin instead of ingots?
Secondly, the Mint claims to have 100,000 visitors annually, if this increases the number of paying visitors, then it is earning more than mere ingots would. After all, the Mint already had the machinery and craftsmen to make the coin.
Thirdly, as the coin is made of pure gold it can always be sold, not at its face value but that of the gold.
Lastly, if the company ever needed to dispose of its gold assets, being unique, it could possibly sell the coin to a collector, in auction, at a higher price than that of its weight in gold.
Fort Knox
Conclusion
As the gold needs to be held as collateral, it may just as well be used in a manor that earns more than just that on the commodities markets.
It certainly is being put to more use than the gold locked up in the gold vault at Fort Knox, if there is still any there.
Although the coin itself will not feed any of the starving, perhaps any extra revenue it makes could and then that may silence the skeptics.
This truly is a novel way in which to make your money work for you.
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