Gold and Silver Maple Leafs Get New Packaging

Gold Maple Leafs and Silver Maple Leafs are receiving packaging makeovers, changes clearly mandated by investor disfavor with packaging that the Royal Canadian Mint has used since the coins were introduced. Gold Maple Leafs debuted in 1979, Silver Maple Leafs in 1988. The changes appear to be good moves, which should increase sales of Silver Maple Leafs and help keep Gold Maple Leafs the preferred pure (.9999 fine) gold bullion coins.

Since inception, 1-oz Gold Maple Leafs have been packaged ten to a tube. Because Maple Leafs are 24-karat, pure gold, they are "soft," relative to alloyed gold coins, such as American Gold Eagles and Krugerrands. Further, because of the design of the coins and the tight-fitting tubes, it is difficult to remove, inspect, and reinsert 1-oz Gold Maple Leafs in their tubes without scratching the coins.

Actually, reinserting Gold Maple Leafs without at least some scratching is nearly impossible. Further, if the persons inspecting the coins do not know how easily the Gold Maple Leafs are damaged, needless damage often occurs while the coins are out their tubes.

Gold Maple Leafs carry the image of Queen Elizabeth II on the front, with a flat, clear field alongside the image. The backs have the outline of a maple leaf, hence the coins' names. The problem arises from the coins' really sharp milled (reeded) edges. When the coins are reinserted in their tubes, the milled edges often scratch the fields.

Then there is the problem with investors who like to "heft" their coins "to get a feel of them." If they put four or five Gold Maple Leafs in the palms of their hands and "clang" them, the damage can be quite severe. Should a Gold Maple Leaf be dropped, rim damage is almost guaranteed.

As Gold Maple Leafs have been sold into the secondary market, damaged coins have become such a problem that Gold Maple Leafs have lost popularity with investors. The problem has become so widespread that many wholesalers bid only "melt" for Gold Maple Leafs, regardless of their condition. By paying only "melt," wholesalers can profitably resell the coins for industrial or jewelry purposes if no buyers are found for the coins.

Gold Maple Leafs, like the Gold Eagles and the Krugerrands, are bullion coins, which trade for the value of their gold content, plus small premiums. Damaged Gold Maple Leafs do not mean a loss of gold; they contain an ounce of gold regardless of the scratching or rim nicks. Still, buyers do not like to receive damaged coins. This means that Gold Maple Leafs sold into the secondary market have to be evaluated for the degree of damage.

Some wholesalers refuse to take the time to individually inspect Gold Maple Leafs and separate them according to their condition. These are the wholesalers who generally will pay only "melt" for 1-oz Gold Maple Leafs, regardless of condition. Fortunately, the free market being what it is, there are still some wholesalers who will buy according to condition.

Yet the handwriting is on the wall: 1-oz Gold Maple Leafs in tubes will continue to lose popularity and probably will join Krugerrands, Mexican 50 Pesos, and Austrian 100 Coronas as basic bullion coins, which carry the smallest premiums in the bullion coin market. Still, the packaging makeover should fillip sales of new Gold Maple Leafs.

With the new packaging, each 1-oz Gold Maple Leaf will be encapsulated in plastic and suspended in the middle of a plastic card, somewhat as 1-oz gold bars are packaged. However, the plastic protecting the Gold Maple Leafs will be heavier and more durable than the plastic used with 1-oz gold bars. The new packaging should keep the coins from being easily damaged.

With the new packaging, the Royal Canadian Mint made another big change: 1-oz Gold Maple Leafs will now come 25 to a box, whereas the old packaging is ten to a tube. This change could further increase sales as 20 coins are common ordering units for gold bullion coins, because the world's most popular gold bullion coins-American Gold Eagles-come 20 to a tube. As a result of the change, investors wanting "complete original packaging" will move up to 25 ounces.

However, orders for small quantities mean the coins will have to be removed from their mint boxes-but still individually encapsulated-and put in other containers. The new packaging also will require more storage space for Gold Maple Leafs than for 1-oz gold coins that come in tubes.

Although 1-oz Gold Maple Leafs will be a little more cumbersome to handle, a large segment of the gold coin bullion market prefers pure gold coins. Gold Maple Leafs have long been the most popular 1-oz pure (.9999 fine or 24-karat) gold bullion coins on the market, and the new packaging should keep Gold Maple Leafs as the preferred 24-karat gold bullion coins. (The market for pure gold bullion coins is estimated to $2.4 billion annually.) The new packaging is expected to debut sometime in August.

New packaging for 1-oz Silver Maple Leafs has already been introduced. However, Silver Maple Leafs in their old packaging are still available. Since Silver Maple Leafs were introduced in 1988, they have been packaged twenty coins to a sheet, 200 coins in a box. Each coin was individually enclosed in plastic. The new packaging will be similar to the U.S. Mint's Silver Eagles packaging.

Silver Maple Leafs will now come 20 to a tube, 25 tubes to a container, and 500 coins to a "mint box." The new box will be made of durable heavy plastic, whereas the boxes of 200 are cardboard. The new packaging should make Silver Maple Leafs more competitive with American Silver Eagles, presently the most popular 1-oz modern silver bullion coins being sold.

Bill Haynes heads CMI Gold & Silver Inc, one of America's oldest precious metals dealers. See CMIGS' website at http://www.cmi-gold-silver.com

---

Part II of Day Traders and Swing Traders and Options? Maybe!

Before every protective put trade it is possible to calculate... Read More

Forex Trading Best Practices

FOREX, the term for the FOReign EXchange market, is an... Read More

Holy Grail Investments

Every year I go to the Money Show in Orlando,... Read More

Hedge Fund 101 - Make Money with Hedge Funds

Investors are always looking for the best investments that will... Read More

Franchise Investing, Franchise Opportunities and Franchising Renewals

Have you considered buying a franchise instead of trying to... Read More

Investing Offshore for Retirement

As an expatriate you are in a privileged savings and... Read More

Before You Invest You Must Read This

It is important to answer the following questions before you... Read More

Investing in Car Dealerships: How to Do It Right

The financial characteristics of the automobile dealership are attractive:". .... Read More

Investing and Understanding What You Buy

"There is nothing more frightful than ignorance in action!" Johann... Read More

Stock Market Leaders and Laggards

Leaders are stocks that breakout immediately when the market confirms... Read More

Margin Benefits are Marginal at Best

Margin is one of those things that novices find puzzling... Read More

Creating a Financial Future--Putting Your Plan Into Action Part 2

Real Estate can be a useful tool for investing. The... Read More

Franchise Opportunity Sellers Beware; franchise buyers lie on forms?

It seems completely absurd that franchise buyers lie about their... Read More

Shop More, Save More for College Gimmick or Reality?

The man sat in a chair beside a dressing room... Read More

An Old Dividend Stock Investment Idea, for a New Generation

Death and taxes! The certainties of life! And then, of... Read More

Four Key Components To Building A Trading System

Need some insight on what you should really be striving... Read More

Angel Investors: Who They Are & When Are They Appropriate

Angel investors are individuals who invest in emerging business ventures.... Read More

Brain Snappers and Other Wall Street Nonsense

The last time you spoke with your broker did he... Read More

What is an Investor Ready Business Plan

A Business Plan, as all good entrepreneurs starting out in... Read More

The Biggest Oil Opportunity in the World ? And How You Can Profit From It

Where is the second biggest deposit of oil reserves in... Read More

Your Worst Enemy To Successful Investing - The Media

How do you make your investment decisions and where do... Read More

What My Horse Had For Breakfast

Let's see, he had some oats, fresh alfalfa and his... Read More

How to Buy to Let

Find out everything you need to know about buy to... Read More

Investing In Sons Business Could Cause A Real Family Feud

Q: My youngest son wants to borrow $5,000 to start... Read More

Invest To Make Money, Not To Get Rich

The technology boom of the '90s romanticized the "rags-to-riches" ideal... Read More

The Cost of Green Eggs and Ham

Young readers know that March 4th is the birthday of... Read More

Evaluating A Money Manager

Scams and frauds are designed to take your money through... Read More

Maniac Investment

Let's first understand what maniac means. According to Webster a... Read More

Investigate Before You Invest

"Through wisdom is a house built. And by understanding it... Read More

Dont Catch a Falling Knife

One of the most common mistakes made by inexperienced investors... Read More

Why Do You Want to Become a Online Trader?

Motivational guru Tony Robbins teaches that the reason for doing... Read More

Five Sure Fire Way to Secure Your Financial Future

"You can be poor when you're young, but you can't... Read More

Looking For a Safe Investment? Try a Certificate of Deposit

If you are looking for a safe investment and you... Read More