In April, the U.S. Mint revealed plans to strike new .9999 gold coins to go after the growing global market for .9999 fine (24-karat) gold coins in early 2006. Studies show that pure gold coins claim 60% of the world's gold coin market, which is about $ 2.4 billion annually. The Royal Canadian Mint's Maple Leafs holds the number one place for pure gold coins. However, problems surfaced with maple leafs.
If the Mint avoids the problems that have developed with Gold Maple Leafs, it has a golden opportunity to grab. An even larger share of the gold coin market The U.S. Mint's American Gold Eagles are the best selling 22-carat gold coins in the world.
Despite the fact that the world's best-selling 24-carat gold coins, design and packaging 1-oz Maple Leafs' leave them susceptible to damage. As a result, Gold Maple Leafs have fallen into disfavor among American gold coin investors. There are indications that gold coin investors worldwide have the same frustrations with 1-oz Gold Maple Leaf coins.
It is almost impossible to remove, inspect, and put 1-oz Gold Maple Leafs back in their tubes without scratching them, no matter how carefully done. Gold Maple Leafs have smooth, clear areas around Queen Elizabeth's likeness and sharp serrated edge. When the coins are put back in their tubes the edges scratch the fields - and sometimes elevated image of the queen.
And, heaven forbid that a 1-oz Gold Maple Leaf is dropped on a hard floor or a tabletop. But the most damage is done when investors handle the coins. If Gold Maple Leafs roughly treated, as investors are used to treat Krugerrands and Gold Eagles, Gold Maple Leafs are easily damaged. Consequently, many badly damaged Gold Maple Leafs are reflected in the secondary market.
Until a few years ago, Gold Eagles and Maple Leafs sold in the same markings on spot. But, as Maple Leafs, investors who bought since 1979, began to arrive in the secondary market, problems surfaced. Now, to keep investors in the U.S. market to buy Maple Leafs, the Royal Canadian Mint for new (current year) Gold Maple Leafs offer at a half-a-percent under Gold Eagle awards.
Damaged 1-oz Gold Maple Leafs are such a problem that a major secondary market maker stopped dealing in coins for a while. The head trader said he was not the time to discuss with buyers and sellers the terms of the coins. He said his staff had no time to inspect each coin and classify it as the amount of the damage. It is commonplace for sellers to say that the coins are in "perfect condition." But when Gold Maple Leafs come, they often badly scratched or nicked rim.
Another major bullion dealer (perhaps the nation's largest) currently buys back "perfect" Gold Maple leaves from dealers located just over a spot, which means that investors receive less than their place as dealers resolve this firm. For scratched or damaged coins, these firms pay less than spot, which the company to send a refinery at a profit if the company does not have the coins buyers for Gold Maple Leafs.
The secondary dealer returned to trading Gold Maple Leafs, but alone buy them at prices that will enable him to profitably melt the coins as they really are beaten. As noted, because of the problem with the secondary market Gold Maple Leafs, the Royal Canadian Mint has to price Gold Maple Leafs below Gold Eagles to entice people to participate in the U.S. market. Gold Maple Leafs investors
Fortunately - the free market is what it is - there are dealers who evaluate the time to Gold Maple Leafs and pay more for those in better condition will take. Nevertheless, the spread (the difference between what an investor can buy and sell at any time) to "perfect" Gold Maple Leafs is about $ 4 wider than Gold Eagles. However, the U.S. Mint's new 24-karat gold coins have no problem coins.
For example, the 1-oz Austrian Philharmonics and The Perth Mint's 1-oz coins are .9999 fine. However, these coins are not easy to be damaged during normal handling due to their design and / or packaging.
Philharmonics ten to a tube and can be taken off and put back without scratches in their tubes. The Perth Mint coins come individually encased in hard plastic capsules. As long as Perth Mint coins remain in their capsules, they maintain their perfect conditions.
Hopefully, you know the U.S. Mint of the problems with the Gold Maple Leafs and designs her new .9999 fine coins and their packaging, so that the coins are not easily scratched or damaged. If the Mint chooses to deal with the packaging of the new coins in tubes, as the Gold Eagles and as Philharmonics are packaged, then avoid. Currency have milled edges
Although Gold Eagles edges, old U.S. gold coins ($ 20 Libs and St. Gaudens) are milled were beaten with lettering on the edges. So, lettering is not new to the U.S. Mint. With lettering, the edges are smooth, making the coins are less likely to scratch other coins in treatment. Philharmonics, which is not susceptible to damage, letters have their edges.
[Over the centuries, mints learned to design to guard against "shaving," a process in which a small amount of metal is "shaved" the edges gold coins. Milled edges are trimmed clearly audible. Light letters on the edges solves the problem. If no lettering can be seen on coins that are known to have been beaten with letters, then the coins shaven and no longer have their original gold content.]
If you Maple Leafs, Perth Mint .9999 fine gold coins have milled edges and carry an effigy of Queen Elizabeth II on the obverse (front). However, to protect against damage, the Coin The Perth Mint encapsulates them in plastic capsules. When Perth Mint gold coins are removed from their capsules and tubes, the coins are easily scratched as his Maple Leafs.
To go after a piece of the $ 2400000000 .9999 fine gold coin market, the Mint needs to consider the mindset of bullion coin investors. Bullion coin investors look for alternatives to paper money, they are not coin collectors. Bullion coin investors prefer coins packaged so they can be stored and secured easily.
This means that the coin must package the coins twenty to form a tube, which has become - in particular as a result of the Gold Eagles - are preferred. Five tubes favorable total hundred coins. Furthermore, the tubes are made of the same durable plastic which Gold Eagle pipes are manufactured. Hard plastic pipes, such as Philharmonics, and can break when dropped. Gold Eagle pipes, however, are virtually indestructible.
"Shave" for protection against the Mint should design with letters edges. Their new coins Letters edges would make the coins less prone to scratches.
The Mint is like to feel and weight. Their currencies after the bullion coin market, and bullion investors Packing the coins in tubes allows investors to more easily inspect their coins. Collectors, on the other hand, want to make. Their coins in such pristine condition Although capsules are excellent for protecting collector coins, coins individually packaged in capsules require more space for storage. The other aspect that the Mint has to consider is the theme of the coin.
The coin should be the theme to make something uniquely American, as it did with his American Eagles coins. For the Gold Eagles, the Mint chose a slimmed-down rendition of Augustus Saint-Gaudens' famous Standing Liberty, which he founded in 1907 to create a new Double Eagle ($ 20 gold coin) worship. Almost a hundred years later, the Saint Gaudens, the currency is now called, is seen as the most beautiful coin by the U.S. Mint.
For the Silver Eagles, the Mint chose AA Weinman Walking Liberty design, which was used on half dollars from 1916 to 1947. Walking Liberty halves are among the most popular silver coins ever turned out by the U.S. Mint. Based on the success of the Silver Eagles program (more than 128 million sold since their inception), making the Walking Liberty on Silver Eagles was the right move.
Some may argue that the Standing Liberty and the Walking Liberty used in American Eagles program, design and therefore the currency to go to another design. However, the Standing Liberty and the Walking Liberty immediately identified as American by the world's bullion coin buyers. Besides, is not so much Miss Liberty icon of our nation as the eagle?
If the U.S. Mint avoids the problems that have surfaced with Gold Maple Leafs and offers gold coin investors a strong alternative, then it has a golden opportunity to gain a large share of the .9999 fine gold market. With proper planning, could Currency grip of the Maple Leaf on the .9999 bullion to shake. Currency market
Bill Haynes heads CMI Gold & Silver, one of the nation? Oldest precious metals dealers. For more information about investing in gold and silver, visit
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