NELSON MANDELA’S SPIRIT WILL FOREVER LIVE IN
SOUTH AFRICA. HIS ETHOS STUDIED BY EVERY FUTURE
GENERATION WORLDWIDE, AND HIS VERY SPIRIT
SWEEPING THROUGH AND BEING FELT
BY ALL SOUTH AFRICANS, ACROSS OUR LANDS
TO THE EDGES OF OUR SEAS AND BACK.
The coin above is one of the rarest coins in the whole world. There are only 12 of these coins that have been graded proof 70 which is the highest grade that you can get. S A COIN sold this coin recently in tough local economic conditions for R600 000. Over the past 5 years S A COIN has sold over R125 million rands worth of coins. Last year alone our turnover in very tough local economic conditions was R28.2 million. Suggesting that we have any difficulty with the sale of any coins is ridiculous.
THE STATEMENT FROM GLENN SCHOEMAN THAT INVESTORS IN THE MANDELA RARE COINS ARE BEING MISLEAD IS UTTER NONSENSE. AS IS HIS STATEMENT THAT THEY ARE NOT RARE. THE FACT THAT R5 RARE MANDELA COINS ARE RARE WITH LOW POPULATIONS HAS ALREADY BEEN CONFIRMED SEVERAL TIMES IN THE UNITED STATES.
The comments by Glenn Schoeman in Personal Finance are quite shameless. Glenn Schoeman is the Chairman of SAAND (South African Association of numismatic dealers and heads an organisation of less than 50 members. They have been at loggerheads with us over almost every single thing that we have done over the past 25 years or so. It must be considered that Glenn Schoeman is a coin dealer and that he does not sell or support the Mandela R5 coins and he never has done so. He is a coin dealer that competes with us with different coins. He sells mainly modern coins that are minted by the South African mint that whilst they are legal tender coins they are not currency coins and therefore cannot ever become rare coins. He sells Mandela coins in precious metals and any numismatist will tell you that because these coins are not currency coins that they cannot become rare ever. No matter how few the numbers of these coins that are minted they will gravitate down to their metal price over time. He is therefore completely bias and lacks any impartiality whatsoever.
Glenn Schoeman’s ridiculous contention that the rare R5 Mandela coins are not rare is based on their mintage figures. This is comical. Numismatists around the world today do not look at the mintage figures but the population reports. These are the reports that report how many of a coin has been graded by the certification companies. Using this scale that is applied to all rare coins some of the R5 Mandela rare coins with low populations are indeed rare and others are even classified as extremely rare. His contention that they are only worth R5 is even more ludicrous. They exchange hands in the townships for hundreds of rands ungraded. The South African Mint has sold the proof versions of these coins for over nine thousand rand and has never ever made any variety up for sale for R5 no matter what the condition. Asking Glenn Schoeman what he thinks of the rare R5 Mandela coins is the equivalent of asking a Mercedes salesman what he thinks of BMW’s.
It is also a matter of record that thousands of South Africans have made and realized very sizeable profits on the sale of R5 Mandela coins. The profits on the sale of these coins has never ever been limited to the sellers of these coins. The market at the moment of R500 million of the R5 Mandela coins of which we have the largest market share, as an individual coin dealership but a small percentage relative to the overall market value, dwarfs the coin market for SAAND coins. There are more R5 Mandela coin transactions that take place each day that the entire turnovers of all of the SAAND members combined. All of the negativity that SAAND has orientated toward the R5 Mandela coins is that they quite righty perceive that these coins are a threat to the coins that they sell. The Mandela R5 coin market has exploded from 2003 onward far outstripping the sales of SAAND members in pretty precious metal coins that are legal tender but not currency coins and as such unable to become rare coins. SAAND are merely trying to use the media to dent a market that they see as an enormous threat to their market positions. Furthermore, the attacking of the very coins that were manufactured to honour and celebrate Nelson Mandela, and the coins that are numismatically considered globally the only rare Mandela coins worldwide, amongst the plethora of other non-rare Mandela coins that have been produced is an absolute disgrace. This will not go without significant comebacks.
Glenn Schoeman was also in the past the proprietor of The Gold Reef City Mint. The coins from the mint were sold at prices far above their metal content. Whilst they were legal tender coins they are not currency coins and therefore cannot ever become rare. This means no matter how few of these were minted they all gravitated back to their metal prices. Some Gold Reef City coins were sold for prices as high as R39 000 in 1989. To put that in context similar gold coins were selling for R1 240 at that time. Today all of the Gold Reef City coins are only worth their metal content a far cry from the exorbitant prices that they were marketed at. His legacy that he has left behind is one where all of the collectors and investors in these coins made no profits whatsoever. S A COIN has a long legacy spanning 25 years where we have made very significant profits for the clients that have bought coins from us.
S A COIN has sold over R125 million rands worth of rare coins over the past 5 years. It is therefore very humorous to suggest that we would have any difficulty in selling any Mandela coins. There are over 300 000 certified Mandela R5 coins graded by PCGS (Professional Coin Grading System), NGC (Numismatic Guarantee Corporation) and ANACS (American Numismatic Association Certification System). They constitute over 96.4% of the total South African rare coin market with the remainder of South African certified rare coins being a mere 3.6%. The 300 000 certified Mandela R5 coins are worth over R500 million rand and these coins are sold throughout the globe from Tel Aviv to Taipei. There are over 1 000 dealers that specialize in the sale of the Mandela R5 coins in South Africa alone.
There is never ever any time at which that you cannot sell any coin a Mandela rare coin or other. The only factor that leads to a client not selling the coin that they may have is the price that they are offered is too low. We suggest to all of the investors that buy coins through us that they hold onto them for 3 â€“ 5 years. If you sell a coin too soon then you are not going to be offered a good price for the resale of that coin. In addition to the time frame that you try to resell a coin the prevailing economic climate is also obviously a significant factor to consider.
At this time the South African economy is going through a very tough time. What that means is that there is less overall cash in the economy for the purchase of anything let alone selling coins. If you were to place a property up for sale at this time you would be hard challenged to get a good price for it. This is because South Africa is in a recessionary economy. It is the time for intelligent investors to snap up undervalued coins that will show stratospheric growth when the economy is strong again.
Clients that buy coins through S A COIN are advised to hold their coins for 3 â€“ 5 years. They are also informed that when we sell their coins they are placed up for sale on mandate the very same way that real estate agents sell property. The coins are listed for sale within S A COIN and it then proceeds to try to sell the coins for the best possible price for the client. There is a 10% commission charged for the sale of a coin. If a client asks for a cash price for a coin then they are offered a cash price. There is no lack of liquidity in the selling of any coins the only deterrent is the price that you may be offered.
Glenn Schoeman’s comments about the rare R5 Mandela coins are also gravely suspect at best. He is the proprietor of a South African grading system called SANGS. The coins that he grades violate the central principal of all recognised grading services like PCGS (Professional Coin Grading Services), NGC (Numismatic Guarantee Corporation) and ANACS (American Numismatic Association Certification System). The central principal of all recognised grading services is that you do not sell any coins. When you grade the coins that you are also selling this is a conflict of interest and not accepted overseas. It is viewed as being very unethical. To be an impartial grader of coins you cannot sell coins and grade coins. What this means is that when you are selling the coins that you are grading that you would be inclined to assign higher grades to the coins that you buy and grade, than those that you would assign to other members of the public submitted in good faith to you for grading.
The grades of all SANGS coins are not internationally recognised for this very reason. In fact if you were to take any SANGS coin and submit it to be graded by PCGS, NGC or ANACS you would not get the grades that Mr Schoeman and his graders assign to the coins that they grade. SANGS has also graded many coins that have been cleaned. This also violates one of the central rules of international coin graders that being that you cannot assign a grade to any coins that are cleaned. They are for the most part deemed as worthless by the international grading community.
Peter Wilson the Chairman of the National Association of Numismatic Societies has for all of his grandiose title has less than 100 members. This makes much of what he has to say about the rare R5 Mandela coins all too irrelevant. S A COIN has a client base of thousands and thousands of buying clients which is far more representative of the rare R5 Mandela coins and overall market than anyone else.
These two individuals have on regular occasions been negative on the Mandela R5 rare coins. They have a complete bias to the supporting of the coins that they favour that are not even rare coins. They are major supporters of the pretty bullion coins they sell that are minted in limited numbers but that are not rare coins and cannot ever be considered as rare. Attacking the R5 Mandela coins is very un South African. It is equivalent to attacking the Springboks or the Proteas on an unfounded basis. It is the 50 million South African citizens that created the R5 Mandela coin market. They do not need to be told by two relatively insignificant numismatists what they should select to collect or favour. The Mandela R5 coins today constitute more of the South African rare coin market than any other coins. This is just a simple case of sour grapes.
What Mr Schoeman has seen year after year is the rare R5 Mandela market rapidly become more and more powerful over the years. All the while eroding the turnover that he and many other SAAND members have been doing. In essence this just a case of enormous jealously steered at a competing coin company which is going to completely backfire.
To truly understand where the rare Mandela market was formed we have to transport ourselves back in time 20 years to the 1994 Inauguration of the greatest South African of all time Nelson Mandela. After that most famous speech that Mandela gave in 1994, his inaugural speech, one of the greatest speeches of hope and inspiration of all time a new coin was made, the 1994 Mandela Inauguration coin.
The 1994 Inauguration coin was the first South African coin ever to be manufactured to represent a black man in South Africa. It was the very first coin that was ever manufactured to commemorate any new President of South Africa’s entire history. This alone made all of these coins a very collectable coin fully supported by all the laws of numismatics. The laws of numismatics are very clear. It is the preservation of a country’s national currency in the highest quality possible. Under this clear definition that is followed by every single country in the world and all of the world’s numismatists. A simple call to the American Numismatic Association or the graders of the majority of the rare R5 Mandela coins NGC (Numismatic Grading Corporation of America) the second largest coins graders in the world, or a call to ANACS (American Numismatic Association Certification Systems) the world’s third largest grader would confirm that R5 Mandela coins with low populations are rare and in some cases extremely rare.
But most importantly to all of us South Africans is that the rare R5 Mandela market was created by 50 million South Africans. It was South Africans that in 1994 decided that they would collect all of the 1994 Mandela Inauguration coins that they could. In the early years as South Africans continued to collect the 1994 Mandela Inauguration coins not far from the time of their minting they were passing from hand to hand for as much as R50 a coin at the time.
It is not the right of Glenn Schoeman (SAAND) or anyone else to tell South Africans what they should or should not collect. That is the decision for South Africans to make. Indeed it is a blight to Nelson Mandela himself not to support the very coins that were minted to honour him. South Africans en masse had in 1994 elected to collect all of the Mandela 1994 coins that they could get their hands upon. This was done throughout our great nation and indeed in a relatively short period of time you simply could not find that there were any Mandela 1994 coins in your change. These coins had without any promotion by any coin dealers formed an entire industry upon themselves.
We called a prominent coin dealer at the time and asked him about what was happening in the coin market place with the Mandela 1994 coins. We asked him if it was true that these coins were changing hands for R50. He said to us that this was an urban legend. But that was not true. The fact is that the coins were exchanging hands for well over their face value throughout South Africa. But at that time in 1994 we were the largest rare coin dealership in South Africa and we did not dwell further on what was happening in the country with the Mandela 1994 coins.
In the year 2000 another Mandela R5 coin was manufactured. It was the very first South African coin that was ever manufactured that had a black man on it, Nelson Mandela. It was also the very first coin in all numismatic history that had ever had a smiling statesman placed on the coin. The brilliant concept of Natanya Van Nie Kerk an artist for The South African Mint. Nelson Mandela was not an ordinary man he was just so much more than any of us can ever hope to be. We as South Africans were beguiled by a man that was simply extraordinary. The South African R5 Mandela coins are the very reflection of Mandela in so far being numismatically extraordinary. This makes them collectable to everyone all around the world and also in high quality rare coins.
In 2002 whilst we were scouring an international website and noticed two Mandela proofs that had been manufactured with a listed mintage at the time of 5 000 coins. We decided that we would buy them and send them through to the two largest graders in the United States PCGS (professional Coin Grading Systems) and to NGC (Numismatic Grading System). We laughed as we bought them as they cost at that time a couple of hundred rand. The reason that we laughed was because at that time we were the largest rare coin dealers in South Africa and almost all that coins that we sold at the time were ZAR coins for very high values. These are rare coins minted during the time of Paul Kruger well over a hundred years ago. The reason that we laughed is that we thought at the time that the 2000 Mandela proofs were no more than numismatic trinkets and not merited to be placed into our coin holdings worth millions.
We sent one of the 2000 Mandela proofs through to PCGS (Professional Coin Grading Services) to be graded and the other coin through to NGC (Numismatic Grading System). A few weeks later the two coins were returned through us and they both had the grade of PF-66. The sixth highest grade that they assign to any coins that they grade the highest grade being proof 70. We then called the world renowned numismatic journalist Chris Woltermann who has over 50 years of numismatic experience and told him of the two coins that we had purchased. He said to us that they could be rare. We asked how these coins be rare when they were minted so recently in the year 2000. He said to us it does not matter how recent the coins were manufactured. He then asked how many of these coins were minted. We told him that there were 5 000 of them that had been made. He said to us that these would be very good coins to offer through to the public for sale.
In 2003 S A COIN began to market the rare R5 Mandela coins and the rest is history. Today these coins are sold from Tel Aviv to Taipei and just in South Africa alone there are more than 1 000 dealers selling rare R5 Mandela coins in South Africa. They are also recognised internationally as the fastest appreciating rare coins of all time. In all countries today their rare coins are sent through to the major world graders in the USA PCGS, NGC and ANACS to be graded. The reason for this is that it does not matter how many coins that are minted in order to assimilate their relative rarity they are sent through to be certified. The grading companies then compile what they call population reports. These reports state how many of the coins that have been graded. This allows everyone to see the relative rarity of the coins that they are holding.
S A COIN then began to market and educate the whole of South Africa as to how to collect the rare R5 Mandela coins. In essence in order to have R5 Mandela coins that will grow and give you good rates of returns over the years you need to buy certified coins that have been graded by PCGS, NGC or ANACS. All coin investors and also collectors around the world form sets of the coins that they are collecting. To have a complete set of rare R5 Mandela coins you would need to have six coins. They minted two coins of each in their perspective years in (uncirculated the type that goes into your small change) and also proof (especially high struck coins that are minted in very low numbers for collectors). A complete set of the Mandela coins would be two of each variety proof and uncirculated in the years 1994, 2000 and 2008 respectively.
The rare Mandela R5 coins that are sold today have a direct parallel and no difference to the rare ZAR coins that were minted at the time of Paul Kruger. The only difference is the fact that due to population growth more of the R5 Mandela coins were minted than the coins of the ZAR over a hundred years ago. But you have to consider that with the exception of the 2008 90th birthday Mandela coins the vast majority of the R5 Mandela coins have been deemed virtually worthless due to their being used. Coins will not get a grade which can make them rare if they have been used as small change. It is only the perfect virtually untouched coins that are numismatically significant. The ZAR coins honoured a great Afrikaans leader President Paul Kruger. The R5 Mandela coins honour our first black President Nelson Mandela. They were both coins that were currency coins that could be used for the payment of goods and services. Both the ZAR coins and also the R5 Mandela coins have their relative rarity gauged by examining the population reports and not their mintage figures.
The litmus test for any product is that it must be able to perform when challenged. With the rare R5 Mandela coins this is a situation that is no different. The only impact that rare R5 Mandela coins has had of recent note was the over expectation of significant increases when Mandela died, and also the recessionary economy in South Africa that has driven down the values of and made less liquid everything from real estate to antiques. The integrity of the R5 Mandela rare coins is as sound and solid as Table Mountain. No matter what challenges from whatever quarter these coins are posed to deal with they will emerge stronger than ever.
They are numismatically sound, fully supported, by the entire nation and will for most of our lifetimes be the highest performing rare coins in the South Africa unabated. You cannot keep a good coin down not matter what useless rubbish you may state or publish about them. History will bear out S A COIN with the R5 rare Mandela coins retaining the mantle of being the fastest appreciating rare coins in the history of the world throughout most of our lifetimes. All the while making countless thousands of South Africans significant profits tax free. These coins like all good investments will have an always ascending jaggered chart which has highs and lows that reflect the marketplace at that particular time like all normal investments.