Canadian Gold Maple Leaf Bullion Coins

Collecting and Investing in Precious Metals



Disclosure: I am a collector and dealer of these coins.

Canadian Maple Leaf Coin Series

The Canadian Maple Leaf series of gold and silver coins are minted in Ottawa, Ontario by the Royal Canadian Mint. They are internationally recognized and traded as a very high quality form of precious metal for both investment purposes and as part of a coin collecting hobby. Theirprimary purpose is to protect your wealth anonymously from both inflation and confiscation.

One Ounce 99.99% Pure Gold Coin Reverse

One Ounce 99.99% Pure Gold Coin Obverse

Coin Sizes

The gold maple leaf series of coins were first minted in the one ounce (31.10 grams) size from gold of 99.9% purity in 1979. From 1982 onwards, the purity was improved to 99.99%. The outside circular edge is reeded (vertical bars)topreventtheclippingof the edges that occurred in historical times, and topermit the coins to be handled without marking them. Sizes currently available in unlimited mintages:

1 ounce (the most popular size) 1/2 ounce 1/4 ounce 1/10 ounce (the second most popular size) 1/15 ounce (only minted in 1995) 1/20 ounce

One Twentieth Ounce99.99% Pure GoldCoin Reverse

Special Issues

There are many limited editions of the gold maple leaf coins available. They range from the 1 million dollar face value 100 kg coin down to the annually issued 1/25 ounce and have many finishes available from proof, privy marked, colouredand even holographic versions.

Why Invest In Gold?

Precious metal coins have intrinsic value and have been in continuous use for over 2,600 years.

1/12 Stater (1.2 grams) Electrum (50 – 60% Gold / Silver / CopperAlloy) “Lydian Lion” circa 610 BCE.(Credit: Canadian Currency Museum)

Paper fiat currencies, which are not directly backed by a commodityor do not explicitly state “WILL PAY TO THE BEARER ON DEMAND” (and will actually exchange for physical metal in practice), have rarely lasted more than a few decades. They are very easily printed, or created in a computer system, out of thin air. Inflation is not prices going up, but the value of fiat currency going down because the money supply was improperly expanded. Common items purchased by families do not undergo “inflation” when measured against precious metals. During the 1930’s depression, gold was one of the very few investment vehicles that appreciated and preserved a family’s wealth.

There is no counter party liability for physical gold in your possession. This means there is no business, political or promise risk from other people. Gold is payment, not a promise to pay. Fiat currency is a zero coupon promise to pay based upon potential future tax revenues.

Gold Supply

Annual gold mine production: approximately 2,600tonnes in 2010. [1]

Total gold mined throughout history is estimated at approximately 165,600 tonnes to the end of 2009 [2]

Annual increase: 1.6%

Population Growth

Mid year estimated world population in 2009: 6,776,763,237 [3]

Mid year estimated world population in 2010: 6,852,472,823 [3]

Annual increase: 1.1%

Mid year estimatedCanadian population in2009: 33,720,200 [4]

Mid year estimatedCanadian population in2010: 34,108,800 [4]

Annual increase: 1.2%

Canadian Dollar Money Supply (in Millions)[5]

Currency Outside Banks:November 2009$54,527 November 2010 $56,198 Annual Increase: 3.1%

M2++(gross):October 2009 $1,856,318 October 2010$1,944,209Annual Increase: 4.7%

Depending upon whichdefinition of the money supply is used, it’s very clear that thecreation of fiat currency is expanding at a much greater rate than either the population or gold mine production. Therefore,the prices in fiat currency of goods, servicesandespecially goldwill increase in accordance with the law of supply and demand.

The Bank Of Canada – The Source Of Inflation In Canada

Goldis one of the best ways toprotect the purchasing power of your wealth. Although the price of gold as a commodity is very volatile, it is possible for individuals to hedge out the price risk, through the use of an option collar. As gold is often negatively correlated to other financial assets, it is an important part of diversifying an investment portfolio.

How To Invest In Gold

There are two main categories of gold available for an individual to purchase. Each option within these categories has many advantages and disadvantages.

Paper Gold

If you can’t touchthe metal, it’s paper gold.Paper gold is the liability of a corporation to you that promises to track the price of gold. It is potentially subject to default and fraud. Some examples:

Certificates Exchange Traded Funds Pooled Storage Accounts Digital Gold Currency Stocks and Mutual Funds Futures and Options

Physical Gold

Coins Bars Jewellery Scrap (usually melted jewellery) Nuggets or fines

Advantages Of Gold Maple Leaf Coins

In hand tangible wealth not subject to counterpartyrisk. Purchasing power remains intact as an honest store of valueover centuries of time. One ounce of gold bought a nice new man’s suit in 1900 and it still does today. International recognition of high purity and accurate sizes. No provincial sales taxes in Alberta, Quebec, Northwest Territory and Yukon. No GST or HST. Purchases of less than $10,000.00 are anonymous. Transactions using gold are final and not subject to banking system charge-backs or repudiations. Compact value and a visually attractive coin that does not tarnish. They have legal tender status and are not subject to taxes when crossing borders as bullion bars may be. (This is the reason for the low face value in dollars on the coin which is disregarded by dealers.) An exceptionalbarter item during a time of crisis.

1 OunceGold Maple Leaf Inside HardPlastic Shell.(The outer casing holds the larger 1 ounce Silver Maple Leaf, and the insert ringpositions the1 ounce gold maple leaf centered and easily removable).

Disadvantages Of Gold Maple Leaf Coins

The coins are soft and easily scratched. They are often kept in readily available hard plastic shells. The smaller sizes come mint sealed in soft plastic sheets that can be cut aparttoseparatesingle sealed coins. Damaged coins are subject to small value discountsat the discretion of the buyer. Premiums above the spot price are higher than bullion bars. The bid / ask price spread acts like an investment commission. Shortages and high premiums canoccur during periods of financial turmoil. Provincial sales taxes apply to retail purchases in Saskatchewan, Manitoba, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland.

Where To Buy And Sell Gold Maple Leaf Coins

Gold maple leaf bullion coins cannot be directly purchased by an individual from the Ottawa Mint. They only sell to authorized dealers, who areusually chartered banks, currency exchangersand coin shops. These authorized dealers supply a secondary market of coin collectors, investorsand smaller dealers. If you live in a large town or city, your local coin shop or currency exchanger probably carries a good inventory of both the gold and silver maple leaf coins and will buy your coins if you want to sell them. Jewellers often carry the coins for mounting in bezelsand intended to be worn as a necklace. Outside of population centers, internet dealers and auction sites will mail the coins to you. Annual coin shows where dealers andcollectors gather is another option.

The Royal Canadian Mint, Ottawa, Ontario

Where To Store Gold Maple Leaf Coins

The best place to store your coins is in a hiddenfireproof safe bolted down to your floor. Clever hiding spaces inside or around your home are the next best option.Bank safety deposit boxes are not a goodchoice because they may be closed in a time of severe financial crisis andthis is the exact time you do want immediate access.Safety deposit boxes have also been stolen by the police: in the United States in the 1930’s during the goldconfiscation and recently in England during Operation Rize.This outrageous attack upon the citizens resulted in the confiscation of family wealth smuggled out of prewar Germany by fleeing Jews and the 90%+ other innocent owners who were forced to pay legal bills of tens of thousands of pounds where they had to prove the source of the funds.