Are Royal Canadian Mint Coins a Good Investment?

February 14, 2018

Image of Are Royal Canadian Mint Coins a Good Investment

People often ask are Royal Canadian Mint Coins a Good Investment?

Well, the Mint makes coins for the Canadian government. In fact it makes a lot of coins. A whole lot. Some are for official circulation such as the quarters on your bedside table.

But some others are made purely for the collector’s delight. And what is an investor, if not a gifted collector?


As it turns out, some Canadian coins make a much better investment than others. So are Royal Canadian Mint Coins a Good Investment?
Canadian coinage is respected as some of the best in the world for design and quality of engraving.

For both aesthetic and technical quality, investors have been talking about them ever since the first commemorative coin was put on the market.

That’s why an investment advisor as qualified as Constance Gutke recommends putting money into Canadian gold coins.

In his 5 tips to investing in and buying gold coins, Gutke says it’s wise to stick with a North American coin collection. Why? Because they are the easiest to buy and sell, and because they are just more beautiful.

When Are Royal Canadian Mint Coins a Good Investment?
Royal Canadian Mint Coins make a rather worse investment when you overpay for them. It’s easy to find the best deals on Silver Maples, for example, with Global Bullion Suppliers. It’s much harder to find great deals on “post office” coinage. These numismatics can be argued for, if purchased on the second market. They are a much harder sell - that is, buy - when purchased directly from the post office.

Post office coins are a bad investment for the following reasons:

1. You are purchasing coins at three to four times their precious metals value, meaning it would require a significant market increase before you got close to breaking even on price.

2. Most coins are not of sufficiently limited quantity to merit numismatic value.

3. All coins sold at post offices are in brilliant uncirculated condition, and few will likely be lost. This means you won’t get much numismatic growth over time.


How should I Buy Gold or Silver Coins?
There are a number of benefits to owning mint coinage like the Canadian Silver Maple Leaf, or Canadian Gold Maple Leaf.

Especially when compared to post-office gold or silver bullion, bullion coinage comes with interesting security features without the hefty price tag.

Does that mean all fancy coins are a waste?

Not all, in fact, if you are willing to pay a little more for the aesthetics, coins like the Superman Maple Leaf blend bullion and collectible elements.


Is beyond bullion value a good enough answer to are Royal Canadian Mint Coins a good investment?


A Lot of Nice Bullion.
Canadian Mint coins come in gold, silver, and platinum. Most of the gold coins you can buy are 99.999% pure gold. The Royal Canadian Mint was the first to mint to that standard. With silver, you are normally buying 99.999% or 99.99% fine. While platinum, because it’s usually an alloy, comes in at 99.95% purity. That’s nothing to shake a stick at. So buying coinage is like buying the real metal as an investment. That means you can covet it when inflation hits and stocks are plummeting. And since you get the same benefits owning a silver coin as you do buying a silver bar, so why not go for something beautiful?


High Numismatic Value.
The more rare the coin, the higher it’s value will be in the future. Gutke advises against buying rare coins because they “require more expertise and diligence when buying.” That’s definitely true, but that does not mean you should shy away from them. The Canadian Mint will remain a respected manufacturer of coinage for years to come, so if you see a rare coin that catches your eye it makes sense to go for. Why? Because these coins have higher numismatic value than the regular Maple Leaf, and thus will accrue value faster than more generic coinage.


A Part of Culture.
The Mint produces coinage with a variety of finishes. You can go for the Vimy Ridge memorial, a Halifax Public Gardens coin set, or a DC Comics Original series. There is something deeply symbolic and meaningful about connecting with the various aspects of our culture.


What Do I Need to Know About Coinage Before Investing?
The Royal Canadian Mint has some helpful definitions to keep in mind while shopping around for gold bullion dealers. Here is a quick rundown:

  • When you see 24-karat gold it means the piece is 99.9% to 99.999% real gold.
  • Bullion simply means “bars, ingots, plates, wafers and coins made from precious metals, usually gold or silver.”
  • Mintage refers to “the quantity of a particular coin that a mint produces.”
  • A “Finish” on a coin refers to the type of surface texture it has. Common finishes include a proof, reverse proof, or specimen.


If you're asking are Royal Canadian Mint coins a good investment, you're best buying RCM Gold and Silver Bullion...
The final verdict on are Royal Canadian Mint Coins a good investment is a conditional yes. The condition is you stay away from “post office” coins. Now that you have a better understanding of the ways to buy precious metals, and the terminology for coinage, you should find it easier to buy gold bullion online.

Unlike precious metal bars, coins can sometimes have collectible and numismatic value, even if only marginally above their precious metals content. Much like goodwill, it can make sense to pay a little extra for intangible factors to complete your investment. In reality, the beauty of these coins is just icing on the cake.



Also in Blog

Our guide to investing in gold and silver right now
Our guide to investing in gold and silver right now

August 18, 2020

Due to a volatile market and the fluctuating price of gold and silver, investors are advising precious-metals observers to buy gold and silver today as a smart hedge in an investment portfolio.
Read More
How the Coronavirus Pandemic is Influencing the Precious Metals Market
How the Coronavirus Pandemic is Influencing the Precious Metals Market

June 08, 2020

In this post, learn how the economic fallout caused by the pandemic has affected the price of gold and silver.
Read More
It's Time to Sell Your Gold and Buy Silver
It's Time to Sell Your Gold and Buy Silver

March 27, 2020

The coronavirus crisis is shattering our workday culture and battering Wall Street but it’s also influencing the precious-metals market in a very interesting way: the price of gold rose dramatically, just as silver’s price plunged. That means there is no better time to trade your gold for silver than right now.
Read More