***In 2007, the, then, new RM50 banknote was issued with a commemorative cover & folder to the general public at the issue price of RM60 with the total quantity issued at 20,000 pieces.Since then, its price has progressively shot up to as high as RM550 a piece for those with 2 zeroes.
Many sellers and collectors alike actually made themselves believe that the value of this note has shot up.
But, what really happened was that 1 rich collector was on a buyer spree for this note and was buying as many as possible at the range of RM500 to RM550 each.
The buying has stopped. But many owners of this note think otherwise and many still want to sell at high & ridiculous prices.
As it is now, trying to sell 1 piece at RM500 already seems so difficult as it is way, way overvalued & oevrly speculative.
Some apologists argue that 20,000 pieces is a small number. But then, what about the 30-in-1 RM5 notes with a total issue of 3,000 pieces whose price is never above RM600 each, with the original issue being RM400? Smaller issue but shitty price.
But with the impending issue of the new Limited Edition banknotes featuring 6 new banknotes of RM1, RM5, RM10, RM20, RM50 & RM100, all bearing the same serial numbers, would the price of the 2007 issue not collapse?
Would you still prefer to pay RM500 for the 2007 issue or would you prefer to pay RM500 or even more for the new 6-piece Limited Edition notes?
If you choose the latter, that means the single piece RM50 note is overpriced and a 'correction' might be long overdue.
It took 4 years from 2007 to 2011 for the RM50 Merdeka Folder banknote to rise from RM60 to RM550. I don't think it needs 4 long years to spiral downwards pricewise.
5 comments:
Hi malayastraitsbanknotes,
Nice thought provoking artcile that can help us to restrategize our methods and practises of collecting.
Thanks a lot for your guidance :)
For those who bought this issue at RM60, RM120 or even at RM300, it's best to sell it and take profit as this note is way2 overvalued.
But, as usual, most folks, I predict, would like to make it to the exit when the exit becomes too narrow to pass though!
In my personal opinion, your argument is based on certain assumptions and you are not comparing apple with apple. Here are my reasons; -
1) Generally a 20,000 folders issue is relatively small in today's environment. A single note folder issue has more appealing to a collector than a 30 Uncut sheet. I have been collecting for few years now, and have not even purchased any uncut sheet larger than 8. Most of my uncut sheet is either 2 or 3. Even if BNM had issued a 30 uncut sheet and just limited to 30 sheets only, I would not rush out and buy one. These kind of sheet created problem in storing and not to mention possible foxing in a hot and humid climate. To me large uncut sheet is nothing more than an expensive wall paper;
2) Your assumption on the price reduction on the 2007 RM50 is assuming BNM will reprint the same note design as those issued in 2007 for the new series. It is unlikely that BMN will do that. To reprint this note, and assuming the matching s/n for the new series all starting with AA prefix, then BNM will not be able to use the same design of the 2007 note with the same serial number again. Even if they do, it would not be appealing to collectors if all denominations for the new series have AA prefix except the RM50 note. Perhaps you have seen the new RM50 design, in my opinion, most likely BNM may even modify this new RM50 note. Even if they do used the same RM50 again, I am sure dealers and collectors can still identify the difference between the 2 notes issued ie 2007 print and 2011(?) print. I could be wrong here, but hey, no one is perfect!;
Whilst I agreed that the current asking price for the 2007 RM50 is unrealistic, I do not expect the price to come down substantially just because of the impending new issue. However, in my opinion, at best this folder note should not be worth more than RM200 each at best. I hope I am wrong here (again) as I will be laughing all the way to my bank.
Good comment.
However, my rationale for the current co-called overpricing of the so-called RM50 Merdeka Folder note is based on my own hypothesis that a collector will be more inclined, at least I would be, to buy the new Limited Edition consisting of a set of 6 new notes bearing the same serial numbers at RM500 than to buy the now 'overextended' Merdeka Folder at RM500 or even slightly lower.
It's not based on the fact that the new Limited Ed will contain a similar designed RM50 note.
Anyway, according to grapevine, the new Limited Ed issue will indeed have a similar RM50 in design, but the prefix will be 'AAA.'
As such, the first note will bear the serial numbers of AAA000001!
In marketing,the market is always not perfect!Anything can happen!
Price always fix by market forces.Just be cool,you will get a good buy!
Post a Comment