The Case For Investing With Canadian Silver Maple Coins

 

Recently I picked up a few Canadian Silver Maples on a whim.    Nice looking coins.   I don’t have much for or against Queen Elizabeth but I guess her “entrance” into the Olympics opening ceremony was endearing.   The maple leaf on the back looks cool though.   The simplicity of the design and the silver makes me think of ice and crisp weather, which Canada is known for.

Many silver investors prefer government minted coins, particularly US silver eagles.   There tends to be a slightly higher markup on silver eagles than some privately minted bullion.   Eagles can be put in an IRA (I don’t know why you would want to do that, but yeah, they can) and one of the other selling points of US eagles is that they have a face value of one US dollar so as long as the dollar exists and let’s say a large meteor made of pure silver makes a soft landing on Earth and brings the market done to nothing, the silver eagle will still maintain some value.  Many people say the same thing with pre-64 US silver coins (aka “junk silver”) for the same reason – they’ll always have their face value at the very least.

I didn’t realize it until I held the Maple Leaf in my hand, but the coin has a face value of five Canadian dollars.  The markup on Maples is sometimes slightly lower than US Eagles, which only offer a one US dollar face value.   That means that if you bought a silver maple today for approximately $30, your investment would be backed by five Canadian dollars, which is worth about five US dollars today.   That’s 18% backed up by currency, which isn’t a bad little “safety net” should the silver market completely fall through.     The Canadian dollar is a currency that many investors like as well, being as their economy is heavily based on commodities.

Most of us that invest in silver do so because we believe that it’s a hedge against inflation, government mismanagement of economies and/or believe that there’s a genuine upside potential due to supply and demand.   I don’t believe that the silver market will drop to a point where you would rather have the face value of silver coins, but going with Canadian Maples provides a notable amount of “insurance” in the way of face value over Eagles for a similar, if not lower price.    It’s just something to consider when making silver purchases…

See also Investing in Silver 101


 

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