Mar 2012


Mar 2012

About the Canadian Gold Maple Leaf

By StoneX Bullion

The Canadian Gold Maple Leaf the first bullion coin with 99.99% purity

One of the best ways to invest in gold is by trading Canadian Gold Maple Leaf because they are amongst one of the most liquid bullion coins and are sold anywhere in the world. The Maple Leaf coins were first minted in 1979 by the Royal Canadian Mint. The Maple Leaf Gold coin is the official bullion coin of Canada and the Canadian government guarantees for its weight and fineness.

The Canadian Gold Maple Leaf has a purity of 24K or 99.99% fineness which means that is actually made of pure gold extracted from the Canadian mines without the need of a strengthening alloy of other base metals. The disadvantage that comes with owning a pure gold coin is that it easily shows handling marks.

When the Canadian Gold Maple Leaf coin was introduced the only existent bullion coin was the Krugerrand minted by South Africa. The Maple Leaf Gold coin is legal tender in Canada under the Canadian Currency Act for the face values of US$1, US$5, US$10, US$20 and US$50 even though it is not considered by Canadians to be a circulating bullion coin. The Canadian Gold Maple Leaf coin is priced taking into consideration the gold spot price plus a small premium.

The beauty of the Canadian Gold Maple Leaf

The Maple Leaf coin is available for investment in different sizes: 1/20 troy ounces, 1⁄10 troy ounces, 1⁄4 troy ounces, 1⁄2 troy ounces, and 1 troy ounce. Also, in 1994 a 1/15 troy ounces Canadian Gold Maple Leaf coin was minted but that was a singular exception. They all have the same design with the exception of the weight and the face value inscribed on each one them.

We are talking about a classic design for the Maple Leaf Gold coin depicting on the obverse the bust of Queen Elizabeth II. The obverse changed as the Queen gracefully ages the design being made by Arnold Machin. As the name of the coin suggests, on the reverse it`s the national Canadian symbol, a single Canadian Maple Leaf.

Although we are talking about a design that practically hasn`t change, the Canadian Gold Maple Leaf coin is considered one of the most beautiful gold bullion coins presenting a great interest for collectors.

The success of the Canadian Gold Maple Leaf

The Canadian Gold Maple Leaf is traded on the gold market since 1979 and is well regarded by investors because it comes in a variety of sizes making it affordable for everyone and it is at the same time an asset that is highly admired and with the highest purity on the market.

The Maple Leaf Gold coins are particularly desired in India and the Far East because they are regions where the most accepted form of gold bullion is the pure gold. Because of the pure gold content of the Canadian Gold Maple Leaf it is a favorite of the jewelers all over the world because pure gold bullion can be easily alloyed and maneuvered for obtaining the desired color and hardness.

The most crucial example for its popularity is that from 2007 there have been five orders for a Canadian Gold Maple Leaf that sells at a price between US$2.5 and US$3 million. At first, this Gold Maple Leaf coin with a face value of US$1 million was minted on 3 May 2007 with the purpose of promoting Royal Canadian Mint`s new line of 99.999% purity 1 troy ounce Canadian Gold Maple Leaf bullion coin.

Only one Maple Leaf Gold coin was minted at that time without acknowledging that it will have such a great success. The Canadian Gold Maple Leaf had a gold content that was worth over US$2 million at that time in 2007, 50 cm in diameter, 3 cm thickness, a weight of 100 kg, and 99.999% purity.