Author Topic: Comparing Silver Rounds, Silver Maple Leafs, and Silver Eagles  (Read 7045 times)

Offline edhand

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Comparing Silver Rounds, Silver Maple Leafs, and Silver Eagles
« on: November 25, 2008, 01:41:28 PM »
One point that has been made here and other places is that Silver Maple Leafs and Silver Eagles have a currency value beyond their worth as precious metal, as compared to a silver round.  I just noticed that the American Silver Eagle is denominated at one U.S. dollar while the Canadian Maple Leaf is denominated at five Canadian dollars.  It seems to me that the Canadian coin gives me a much better floor position if silver were to fall in value significantly. (Not that I expect it, but I like to consider things from multiple angles.)  Has anyone out there on the forums given this some thought?

Thanks in advance,
Ed
« Last Edit: November 25, 2008, 01:57:28 PM by edhand »

Offline Taylor3006

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Re: Comparing Silver Rounds, Silver Maple Leafs, and Silver Eagles
« Reply #1 on: November 29, 2008, 11:24:36 PM »
I suppose it all depends if you are spending your money in Canada or the US. I have spent US dollars in countries all over the world without any problem. Not so sure that Canadian dollars have that much appeal worldwide. Heck you would be hard pressed to find somewhere in the States to spend a Canadian buck (excepting along the northern border I guess). With that said, if the silver content/weight was the same and the purchase price of the coins equivalent, the Canadian Maple Leaf SEEMS a bit safer at current exchange rates. I would much rather have $5 Canadian than $1 US (least right now anyways).  Had I known this bit of information before I bought my silver, I may have gotten Maple Leafs (Leaves?) as well as the Eagles. This is a tough call and I would agree with you that if silver falls (unlikely a big drop) you would be in better shape. I will venture a guess and say if both coins are equal (including price) I would go with the Canadian coins or you can hedge both bets and buy some of each. Damn you got me thinking with this, hopefully someone has better insight than what I THOUGHT I had on the subject!! Dammit you got me thinking about something I thought I had dealt with... Wanna trade some Maple Leafs for some Eagles? LOL

GroundPounder

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Re: Comparing Silver Rounds, Silver Maple Leafs, and Silver Eagles
« Reply #2 on: December 02, 2008, 09:15:22 AM »
I just dont see silver coins falling to the level of their monetary value.  I certainly wouldn't worry about your purchase. 

Since I am a US citizen I purchase US Eagles because they are denominated in US currency and the law recognizes them as legal tender.  I want the tender value low vs the intrinsic value.  That helps when dealing with legal tender laws.  For example, if you travel by air you have to declare if you are carrying over $10,000 in currency.  That would require over 200 gold eagles before having to report (200 x $50) but their intrinsic value would be over $150,000. 

There is a lot of gray area about using the tender value of eagles.  For example, if I want to pass on wealth to my kids could I transfer a lot of it into gold eagles then have them declare the tender value for estate tax purposes?  Those sort of things are yet to be tested. 

Offline edhand

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Re: Comparing Silver Rounds, Silver Maple Leafs, and Silver Eagles
« Reply #3 on: December 02, 2008, 09:40:42 AM »
I want the tender value low vs the intrinsic value.  That helps when dealing with legal tender laws.  For example, if you travel by air you have to declare if you are carrying over $10,000 in currency.  That would require over 200 gold eagles before having to report (200 x $50) but their intrinsic value would be over $150,000. 

There is a lot of gray area about using the tender value of eagles.  For example, if I want to pass on wealth to my kids could I transfer a lot of it into gold eagles then have them declare the tender value for estate tax purposes?  Those sort of things are yet to be tested. 

A very good point of which I hadn't thought.  Thanks.

Ed

Offline Taylor3006

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Re: Comparing Silver Rounds, Silver Maple Leafs, and Silver Eagles
« Reply #4 on: December 02, 2008, 08:00:29 PM »
"I just don't see silver coins falling to the level of their monetary value.  I certainly wouldn't worry about your purchase."

Dunno Jack mentioned in one of his podcasts about a silver meteor hitting the planet.. LOL yeah I agree, hard to forsee that they would only be worth face value, silver would have to drop to like $2 an oz or so, not sure it has been that low in 50 years (without checking). All my silver is in Eagles and pre 65 so I am with you on sticking with my countries currency, I was just a bit stunned that the Canadian Maple Leafs had such a high face value, I had never really looked into them when buying my Eagles. Shame too, they were a bit cheaper if memory serves but this was years ago. Thanks for the heads up on "tender value" GP, going to stow that away for future use. Thanks!

GroundPounder

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Re: Comparing Silver Rounds, Silver Maple Leafs, and Silver Eagles
« Reply #5 on: December 03, 2008, 09:03:15 AM »
Here is an article worth reading on the monetary value of gold bullion coins:

http://www.teamliberty.net/id31.html

It is going to take some brave souls to test this.  I am certainly not advocating skirting the law but definitely like the idea of having wealth put back that only I know about.  I can think of almost no other asset you can 'hide' like bullion.  Your bank accounts, real estate, cars, retirement, stocks, bonds, etc all are easily discovered by creditors or .gov but bullion can be completely private.