Rare Coin Company placed into liquidation

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    This was always on the cards ... here's a lesson not to pay someone for a 'vault' for your collectibles without inspecting them (at least) annually ... also when they use aggressive marketing and charge way above the going rate, such as Rare Coin Company did, your alarm bells should ring

    The same applies with SMSF and your art ... only stick with the highly respected names, eg Collins & Kent who (EDIT & ADD: ... "formerly advertised") advertises with Topstocks

    Rare coin company placed into liquidation owing private investors millions

    ABC 27 minutes ago

    A West Australian-based company, which encouraged people to invest in rare coins and bank notes, has gone into liquidation owing private investors what is believed to be tens of millions of dollars.

    The Rare Coin Company is based in Albany on WA's South Coast.

    The business encouraged investors nationally and overseas to purchase rare coins and notes which could then be sold at a profit.

    The company focused particularly on encouraging Australian farmers to invest in the scheme.

    It is understood the company has hundreds of creditors who together are owed millions of dollars.

    Albany investor Rosalynd Sawyer says she had invested in the company for 10 years but attempts to sell her investments in the past 18 months proved unsuccessful.

    She says the company's collapse has left her facing major financial difficulties.

    ... story continues at link ...

    http://au.finance.yahoo.com/news/rare-coin-company-placed-liquidation-045218826.html

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  2. 7.2k
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    Today's Update 9 hours 46 minutes ago:

    Anxious wait for investors after rare coin firm collapse

    The financial future of thousands of investors is now in jeopardy after the collapse of a Western Australian rare currency investment broker.

    Investors from across the nation and even from overseas are anxiously waiting to see what will happen in the fall out of the Albany-based Rare Coin Company collapse.

    That business, which allowed people to trade and invest in the rare money market, claimed it was a 'safe and reliable investment', offering average annual returns of up to 16 per cent

    One Albany-based investor, who asked to remain anonymous, says "this was our super money, so we don't have to eat cat food when we're older."

    And he's far from alone. The company was placed into liquidation this week, sparking fears for the estimated $200 million worth of stock investors held with the company, in addition to around $10 million of liabilities.

    The collapse has left people from wealthy businessmen to financially-struggling retirees facing an extremely nervous wait, as Perth-based insolvency firm Sheridans Chartered Accountants pours over the company's books.

    ...

    Hard sell

    Liquidator Jennifer Low says people like Carol and Ms Sawyer, who paid a fee each year to keep their stock at the company, will get it back.

    Ms Low says, while those items are now in the hands of liquidators and secure, it will take a few months to distribute them to the rightful owners.

    The biggest issue for those people will be finding markets to sell their coins and notes and attracting anywhere near the value The Rare Coin Company had claimed they were worth.

    Some are warning that will be extremely difficult.

    "The market for collectibles is very much in the eye of the beholder and if it comes to a distressed sale, which is probably what we're heading towards, it will be at a very hefty discount," says business commentator Tim Treadgold.

    "Investments in this sector worth a certain price might be completely different to what the market is willing to pay."

    Mr Treadgold warns it could have major consequences for the wider value of such items, but the organisation representing rare currency dealers disagrees.

    "The Rare Coin Company was a large dealer in the market, but the market turns over between $400-500 million per year," said Andrew Crellin, president of the Australasian Numismatic Dealers Association.

    "Although it's a significant event, no company or dealer is bigger than the entire market. We have confidence in the market and that this will be digested in the fullness of time."

    ... much more of this article at link

    And Thanks Andre & Mod Squad for emailing out the Collins & Kent details earlier this week

    http://www.abc.net.au/news/2013-07-11/rare-coin-collapse-feature/4815042?section=wa

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