Canadian Maple Coins are a very popular type of coin in Canada. They are a Maple Leaf family of pure bullion coins that are great for investment purposes. The coins are produced only by the Royal Canadian Mint, and the Government of Canada guarantees the coins for weight and purity.
The Maple Leaf was first released in 1979. The coin is offered in several denominations, from 1/20 ounce to one ounce. Maple leafs are legal tender in Canada at face value, even though classified as non-circulating bullion coins by the Mint Act. In 2007, a gold Maple Leaf coin was released by the Royal Canadian Mint with a ace value of $1 million, and a bullion value of over $2 million. Initially, these coins were intended for display only, but when demain for purchase arose, the Mint began to take orders for them. They sell for between $2.5 million and $3 million. There is also a silver Maple leaf, a Palladium Maple Leaf, and a Bimetallic Maple Leaf. The Silver Maple Leaf is in regular circulation and held as a collectible, but the Palladium and Bimetallic Maple Leaf coins are not.
About a decade later, the Canadian Royal Mint introduced the Canadian silver Maple Leaf. Like the gold version, the silver Maple Leaf is available in both fractional and full ounce sizes, making it available to investors relatively small amounts of capital to work with. And, like the gold coin, the silver Maple Leaf has one of the highest purity levels in the world at 99.99%.
Canadian Gold Maple Leaf coins sell at a premium above the spot price for gold. Coin values are based not only on the current gold price, but also on coin condition, i.e., grade, rarity of the coin, and overall demand. Coins show blemishes and markings, and these affect coin value. The price of gold is sometimes quoted in terms of the Maple Leaf, but this is really a measure of the underlying value of gold itself, along with the premium paid for the gold coin.
In general, bullion like Canadian Maple coins are considered one of the best vehicles for hedging against inflation and for making a speculative bet in favor of precious metals over currency. In recent years, the precious metals market has outperformed virtually every other type of equity investment available. This has led investors in droves toward Canadian Maple Leafs.
Some gold bullion dealers offer special prices to buyers of bulk quantities of gold. For instance, a buyer of 26 ounces of gold in Gold Maple Leaf coins will enjoy premium pricing from the dealer Blanchard. Obviously, this quantity would not be affordable by most individual buyers at the current price of gold. Investing clubs and groups, however, might well benefit from such offerings.
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