Please check my logic

T

THETEXAN

New Member
An ASE, as any coin, has 3 different values, its currency value, its melt value, and it numismatic value.

A 2016 ASE can be purchased for whatever silver price you can get at the moment plus over spot fee, now about $22. Its currency value is $1. So I can go out and buy $1's worth of gum or melt it and buy $19 of gum.

A maple leaf has a currency value of $5 with the same melt value. Why shouldn't I buy the maple leaf if for no other reason that it has 5 times the currency value. If silver ever went below $5, say $3 the maple leafs would have a currency value of $5 compared to the ASE melt value of $3.

Even though it may not be a realistic scenario, wouldn't maples be the better bet even though an once is an ounce?

tex
 
Welcome to the forum, THETEXAN.


I would argue it depends where you live. If you live in Canada, there's nothing wrong with favoring Maples over Eagles. But perhaps outside of Canada it matters since that place you live probably doesn't recognize the Canadian dollar.

Now, if you are looking only at the value of the silver, I suppose if you have a large enough quantity, Maples may be a better choice since they are, I believe, .9999 silver whereas ASE's are .999 silver.For most people most of the time though, that .0009 doesn't mean a thing though.



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Instead of buying maples under your scenario, you would be far better buying Australian $10 coins. Sterling silver and only 20 grams.
Roughly 18 grams of silver per coin or slightly more than 1/2 an ounce.
 
There is calgary olympic coins with face value of $20 = 1 oz of silver
Currency value and face value, but no numismatic value
 
Or pay 50 pounds for the Britannia 2015 UK 50 Fine Silver Coin. One ounce of silver!

I prefer buying silver for the silver content, the currency value just makes in more legit, government backed and it can be called a "coin". Try cashing several in and see what happens. A gold american eagle is only $50 but over $1000 in gold. I don't see a scenario where PM's below the posted values on coins.
 
Nabullion Dynamite said:
Or pay 50 pounds for the Britannia 2015 UK 50 Fine Silver Coin. One ounce of silver!

I prefer buying silver for the silver content, the currency value just makes in more legit, government backed and it can be called a "coin". Try cashing several in and see what happens. A gold american eagle is only $50 but over $1000 in gold. I don't see a scenario where PM's below the posted values on coins.
Click to expand...



Especially since the Pound took a hit against the USD recently....Yankees get more bang for the buck now buying from G. Britain.




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There's nothing wrong with your logic ... But markets don't work on logic alone.

The 'legal tender' value is assigned by the mint and is given the value that it has so that the maple coin can compete with coins from other mints such as the ASE. In other words, your 'logic' is actually something that the Canadian mint has thought about in the production of their coin/product to get people buying maples over ASE's.

Welcome to the Forum.
 
If you care about the "currency value" on the coins then just stick to fiat, a $1 coin in circulation is a lot cheaper than an ASE
 
You also need to be aware that the face value of a coin is not necessarily honoured by the government. Look at the recent issue with the British '20 for 20' coin (was discussed here). The term 'legal tender' is used in a very misleading way.
 
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