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Canadian Gold Maple Leaf Coins

The Canadian Gold Maple Leaf coins are a favorite among collectors and investors. The gold content is guaranteed by the government of Canada, making the Maple Leaf coins a desirable and stable investment. The Royal Canadian Mint produces the Gold Maple Leafs each year. The RCM selects a new design for the reverse side of the coin; these designs vary from the year and add to the allure of collecting this series.

What is a Canadian Gold Maple?

The Gold Maple design is based on the gold Canadian Maple Leaf coins issued by the Royal Canadian Mint. The coins are 22-karat, and each one is worth 50 Canadian dollars. The face value of the currency is much less than the actual worth of the gold alone. A small emblem on the front of the coin shows a maple leaf, which gives the coin its distinction as a member of the maple family. The Gold Maple is one of the purest gold coins of regular issue in the world today. The Royal Canadian Mint guarantees the coin to be at least .9999 fine, or 99.9% pure, though most coins are even closer to 100% pure.

Development, History, and Introduction:

The Royal Canadian Mint first issued the Gold Maple in 1979. Since then, it has been produced every year, except in 1982 when the RCM shut down for retooling; therefore, the Gold Maple is considered a modern commemorative coin.

The coin design changes every year, with one side of the coin featuring the profile of Queen Elizabeth II and the other side having various images that symbolize Canada. In 2013 the coin design featured the animal found on the Canadian Coat of Arms, the lion, and a smaller version of the Canadian flag.

There are several different versions of the Gold Maple produced each year. The version exhibited here is one of the large coins with a face value of 50 Canadian dollars.

In 2013, the 1 oz version of the coin was worth more than the Canadian dollar face value. This enabled buyers to acquire the coins for less than the price of gold and then sell them when the cost of gold increases; this process is known as selling “overweight.” The market price of the coin fluctuates along with the market prices of gold. In 2011 the coin was worth 28 Canadian dollars; in 2012, the price rose to $60, and in early 2013 the value was around $80.

Other types of Gold Maples include 3 Coin Set: This set contains 1 oz, ½ oz, and 1/25 oz coins; maple leaf and rose: This set is very similar to the one above, but with a different design for the 1/25 oz coin; Big Maple Leaf: These coins are among the biggest in the Maple Leaf Series. They are ½, 1, 2, and 5 oz coins; and finally Maple Tree: These contain .10-.02 oz coins, with the ½ oz coin worth $5, the 1 oz coin worth $10, the 2 oz coin worth $20, and the 5 oz coin worth $50.

Although all of these gold coins are beautiful and provide excellent investment opportunities, the smallest coin in the series is also one of the most beautiful. The 1/25th oz coin has an image of a red lion on the front side and a detailed depiction of two parallel strands of DNA on the back. Although slightly more technical than the others, it is still worth framing.

Although the larger coins provide higher value, all of them are beautiful and very interesting. If you choose to collect them, be sure to store them somewhere safe. Also, remember that the price of gold changes daily, so visit your storage often to avoid loss.

Canadian Gold Maple Leaf Physical Characteristics

Coin Design

The same coin is used every year, with the exact features changing each year. In this case, the coin is round with a large Canadian Gold Maple Leaf on the front and an image of Queen Elizabeth II on the back.

It would be best if you always looked at the coin’s date to determine its value and whether you want to buy it or not.

The surface of the coin will feel hard under your fingers. If you think the coin feels thinner than usual, it probably has a coating that makes it challenging to treat chemically.

The Gold Maple, like all other modern coins, is made from layers of metal. Typically, these are nickel surrounded on both sides by copper. Between these two layers is where the gold is stored. A number of other metallic elements may be added to make the coin stronger and more durable. This mixture tends to give the coins a yellowish color, similar to their namesake.

Specifications

This coin has a diameter of 21.1mm and a 1.6mm thick. It weighs a full 1.00 oz and contains .9999 gold (24 carats).

The Face Value is $100 (CAD), though, as mentioned above, this does not necessarily reflect the coin’s worth if you choose to sell it.

Denomination: 50 Canadian dollars
Weight: 1.0000 oz.
Purity: .9999 Fine Gold
Diameter: 32.7 mm

Canadian Gold Maple Leaf Coin Options

Currency is the common name for a standard amount of paper and coins currency in the world market. In practical terms, it is any distinct form of money that can use to purchase goods and services or other items of intrinsic value.

MintID Canadian Gold Maple Leafs

Named after the Maple leaf, the national symbol of Canada. The Royal Canadian Mint has been producing gold coins since 1908 and in 1979 became the first mint worldwide to create .9999 (four nines) fine gold coins. It also makes 1 oz silver coins and 3 oz coins (with higher purity levels or collectible designs). Canadian gold coins are recognized as among the most beautiful in the world: the arrangements for the maple leaf are all iconic Canadian images that are instantly recognizable.

Canadian Gold MapleGrams

  • The 1/10, 1/4, and 1/2 oz sizes are no longer produced. From 2013 the 1 oz size is minted in a brilliant-uncirculated quality. The 1 gram is available in mint bags of 25 pieces.
  • The range of Canadian Gold MapleGrams is available in a wide range of fractional sizes, including 3g (1/10 oz), 5 g (1/4 oz), 10 g (1/2 oz), and a single coin holding 1 oz of .9999 fine gold.
  • The 1/10 oz Canadian Gold MapleGram, has a diameter of 12.5 mm and a thickness of 1.9 mm. The coin contains 1/10 of a troy ounce (3.11 mg) of .9999 fine gold.
  • The 1/4 oz Canadian Gold MapleGram has a diameter of 22.2 mm and a thickness of 2.1 mm. The coin contains 1/4 of a troy ounce (7.33 mg) of .9999 fine gold.
  • The 1/2 oz Canadian Gold MapleGram coin has a diameter of 27.2 mm and a thickness of 2.2 mm. The coin contains 1/2 of a troy ounce (15.67 mg) of .9999 fine gold.
  • The Canadian Gold MapleGram Coin is most people associate with the famous “Gold Maple Leaf,” which contains one troy ounce (31.1 mg) of .9999 fine gold. The coin has a diameter of 32.7 mm and a thickness of 2.2 mm. This size is trendy among investors and collectors because of the low price level compared to other measures and mints.
  • The Royal Canadian Mint produces a 1 Kg (32.15 oz) .9999 fine gold coin. It is a large coin with a face value of $1,000 though it does not circulate as currency (cannot be used to pay for goods or services). The coin is huge, measuring 79 mm (3.11 in) in diameter and 10 mm (0.39 in) thick. These coins are produced for investors and sold at a premium over the spot price of gold.

Canadian Gold Maple Leaf Coin Pricing

  • Year Mintage Surface Purity* Weight (Troy Ounces) Average Price 2008 22,000,000 $100 1.0000 32.4 $1,150 2008-W 22,000,000 $100 1.0000 32.4 $1,150 2008 Specie 22,000,000 $100 1.0000 32.4 $1,150
  • Year Mintage Surface Purity* Weight (Troy Ounces) Average Price 2007 22,000,000 $100 .999+ 32.4 $1,100 2007-W 22,000,000 $100 .999+ 32.4 $1,100
  • Year Mintage Surface Purity* Weight (Troy Ounces) Average Price 2006-W 22,000,000 $100 .9999 31.103 $1,200
  • Year Mintage Surface Purity* Weight (Troy Ounces) Average Price 2006-W 21,000,000 $100 .9999 31.103 $1,100
  • Year Mintage Surface Purity* Weight (Troy Ounces) Average Price

Investing in Canadian Gold Maple Leaf Coins Through an IRA

The United States Internal Revenue Code (26 USC) contains provisions that permit the IRS to disallow or “tax-deferred” status for certain types of investment instruments. These are typically referred to as “Tax-Deferred” retirement accounts such as the 401(k) and the Individual Retirement Account (IRA).To participate in this type of account, one must be within the purview of the US Internal Revenue Code. Under this code, there is a section entitled “Prohibited transactions.”These proscribed investments are divided into two primary sections. The first is “Prohibited Transactions,” and the second is “Conditions Affecting Tax-Deferred Treatment.”

The definition of a Prohibited Transactions is:

  1. Any Custody of Roth IRA or Edmond J.Burns Trust Fund” that involves a self-dealing transaction, an agreement to sell or repurchase specific securities on a given date in the future, or the lending of money, extending credit, guaranteeing payments, or otherwise giving collateral or security, by either the plan or the individual owner except as standard banking arrangements.
  2. Any Joint ownership or Tenancy (Tenants in Common) Ownership” except in some instances: Prohibited under IRA, and permitted for the 401K plan.
  3. Any Investment in Collectibles” is defined as any work of art, any metal or gem, any coin, any poker chip or platter, or any other object which has at least a nominal value of $1,000 per item and which is intended to be held primarily for appreciation rather than for ordinary use.

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The sections of the Prohibited Transactions are as follows:

  • Title I – Prohibition on Custody of IRA Funds With a Self-Dealing IRA Investment: Any transaction in which “Your IRA” holds “IRS Approved Annuity” (as defined in 26 USC section 408) or “currency” is a Prohibited Transaction unless it is an “Accommodation Party.”
  • For this section, a Party is an Accommodation Party if such party is not “Your IRA” and its conduct does not adversely affect the financial interest of “Your IRA.”
  • For purposes of this section, the term “currency” refers to coins or currency issued by a government, including coins or currency in a coin collection. Thus, the Internal Revenue Code lists certain exceptions to Prohibited Transactions (such as sales of collectible coins).
  • A “Prohibited Transaction” (also called a “Disqualified Person”) is a type of transaction in which certain persons or entities are not allowed to participate. Certain parties are Prohibited Persons. For an IRA (Individual Retirement Account), Prohibited Persons include:
  • Anyone you’ve ever had a certain type of relationship with (spouse, ancestor, descendent, sibling, and certain in-laws).
  • In the case of a business or corporation, one is prohibited from transacting with their own business. In the case of a partnership or limited liability company (LLC), the rules are different. A Prohibited Person for a partnership or an LLC is any person that owns more than a certain percentage of the business (no specific rate is defined, but it’s generally 50 percent or more)
  • For an IRA, a person is also considered to be a “Prohibited Person” if they have a “Pension Benefit Guaranty Corporation (PBGC) coverage eligibility.” This applies to an owner of a business (person or corporation).
  • A “Transaction” means entering into, executing, issuing, rendering opinions, and other similar actions. For the most part, a Prohibited Person may not take action involving your IRA.
  • A “Fiduciary” is acting in a position of trust concerning the property. Fiduciary duty means the person must responsibly handle the fund.
  • For the most part, a Fiduciary may not place the funds of an IRA in jeopardy. For example, they may not use the funds to make a risky investment.

See the following for exceptions:

For the most part, the fiduciary (concerning your IRA) has an original duty to diversify (that is, not place all funds in one location or investment). For example, a fiduciary must spread the IRA funds into different assets.

The following are exceptions to the rule against commingling:

If a Fiduciary is (concerning your IRA) buying shares in a closely held business — for example, buying stock in a private company — and that the individual started the private company, then the fiduciary may be able to use the funds of the IRA to buy the shares. For example, in one case, a fiduciary bought stock in a private company started by the person. The Court allowed this because by investing in the private company’s shares, the fiduciary was not putting the funds at risk (because the company had already been started and was already profitable).

Continuing the above example, if the fiduciary had been a corporate fiduciary, they would not have been able to use the funds of the company’s employees for the private company. Since the purpose of this rule is to prevent risky behavior with IRA funds, using an employee’s funds from a privately held corporation in which they work is too risky.

Excerpts from “Conflict of laws and law concerning IRAs” by Jennifer M. Nail, J.D. (c) 2014:  “When you roll over your funds from one institution to another, your rollover options can become considerably limited. You may also have problems if you owe a debt and the creditor can reach your IRA funds (a levy). The creditor can also take legal action, including suing you directly. It is important to know that an IRA is considered property under the law.”

Places to Buy Canadian Gold Maple Leaf Coins

“Where can I buy the Canadian gold maple leaf coin?” This is a common question that people ask when they find out about this gold coin. First, you can buy it from many coin dealers. Just be aware that there may be shipping expenses or other charges. In addition to this, there are three significant ways of getting Canadian gold maple leaf coins:

Dealers in Gold Maple Leaf Coins

One option is to find a coin dealer who carries the coin. These dealers may be at a coin show or a local business. You can usually find these in the phone book in your city, or you can browse online.You can inquire with local coins for gold shops or pawn shops in your town. These shops are more likely to have access to the coin since it is needed by many people who do not have confidence in paper money anymore.

Dealers in Precious Metals

Another option is to buy from a precious metal dealer. Many companies offer gold and silver coins for sale, and some may even have the maple leaf coin. You will probably have to pay extra for shipping costs, however.

OPTION 1: Go To Your Bank This is the least obvious method of getting these coins since banks do not normally stock their vaults with this type of coin, however, given the recent concern about currency notes in Canada going down in value these may be worth more than the paper they are printed on.

A great place to start looking for this is your local bank. You can approach a teller and simply ask if they have any coins available in 1/10, 1/4, and 1 oz sizes of the Canadian Gold Maple Leaf:

Furthermore, in addition to the bank, you may also want to try approaching the tellers at a credit union as these organizations are similar to banks but usually offer better customer service.

You will have to spend time searching since not all branches have these coins. An excellent way to tell if they do is to look for a coin dispensing machine.

Should you get desperate, you can always try pawn shops or even online stores.

Buy from Online Retailers

After looking around for a bit, you may find that the prices are consistently low at a few select locations. If you find one of these, you can decide how much you want to buy and have it shipped to you with minimal expense.

Of course, you can also buy from a local store in person; you have to find one that sells it. Once again, pawn shops and specialty shops are good bets.

Buy from a Gold Dealer

Lastly, you can buy from a gold dealer. They will have the best prices since they make a lot of profit from their sales. The downside is that you may have to pay more for shipping and insurance depending on the size of your purchase.

Summary

Buying gold coins can be a good way of diversifying your assets in times of economic uncertainty. Gold has been used as a currency for millennia and has often held an intrinsic value that far exceeds its stated value, making it a stable choice in times of crisis. Gold maple leaf coins are the official gold bullion produced by the Canadian Royal Mint and have been since 1988. The gold content is measured at a purity of .9999, making it some of the highest virtues in the world. The face value is $50, but the market price is often much higher, typically around USD 1200 per coin for 1 oz coins and $660 for half-ounce pieces.

There are, of course, significant costs involved with purchasing and selling these coins. Storage fees, shipping costs, and brokerage fees all take a healthy bite out of profits—furthermore, the larger your purchase, the lower the price per ounce you will have to pay.

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