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 Replies: 19 / Views: 3,555 |
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Bedrock of the Community
Australia
21786 Posts |
When the decision was made to go to an 800 fine silver standard, the Canadian Treasury at the time were economic rationalists, not coin collectors. Now, the RCM is perfectly happy to produce 1000 fine silver coins for collectors. If you wanna buy 'em complete with a profit margin for the Canadian People, then the RCM is happy to make 'em, and market 'em to you. Most of the RCM's coin collector products are of leading World standard. |
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Pillar of the Community
United States
4233 Posts |
As far as I can tell, up to 1920 all Canadian silver was .925, and 1920+ everything switched to .800. The introduction of the dollar as .800 was just sticking with their standard. So maybe the question is why they changed in 1920.
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Pillar of the Community
Canada
2366 Posts |
Quote:
So maybe the question is why they changed in 1920. Inflation. The silver in the coins was becoming more valuable than the face value. |
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Pillar of the Community
 Canada
849 Posts |
Thanks for all the comments. Kbbpll - your answer makes sense. That is what all the other silver coins were in 1935 - 80% silver.
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Pillar of the Community
United States
4233 Posts |
"Inflation" as a reason makes my head spin, which is probably why I dropped out of my college Economics class. Their money became more valuable than their money, so they had to make their money less valuable. (head explodes)
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Pillar of the Community
 Canada
5394 Posts |
The reason sterling silver standard was debased to .800 fine was due to World War 1 more than anything else. Just like Great Britain ,Canada accumulated massive war debt and it was a way to help pay for it. Purely economic.
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Pillar of the Community
Canada
2632 Posts |
I think Pacificoin hit it right on the head, World war 1. Canada's population was only about 8 or 9 million around then. Purely economic would make sense to me.
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Pillar of the Community
Australia
7096 Posts |
Regardless of their silver content I am of the opinion that the Canadian Silver dollars are an underrated coin due to their low mintages compared to their US counterparts. I do have some Morgan's and Peace dollars But I have Many Canadian silver dollars simply because I prefer them  |
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Pillar of the Community
Canada
2845 Posts |
Blame the Americans! So it is written, seriously! My reference is Striking Impressions by Dr James Haxby. With low silver prices Canada made 65c on every $1 worth of silver coinage produced. Meanwhile opportunist parties in the US were exporting Cdn coin "with tacit approval of the Cdn govt" to sell to the Oriental market for melt. But demand for coin within Canada increased and by late 1919 it was costing more than $1 to replace every $1 worth of silver coin that was melted. So in 1920 the silver content was reduced to 80% and the 5c replaced with nickel.
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Pillar of the Community
Canada
1984 Posts |
Here is an article on the silver price spike of 1919. No doubt a key factor on the decision to debase in 1920. Still, with silver at $1.34 in 1919, the bullion value in a Canadian coin was well under face. http://www.321gold.com/editorials/w...n041105.html |
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Pillar of the Community
Canada
2845 Posts |
My quick calculation is not well under face.
For example a 50c piece weighed 11.62 grams = .41 oz
92.5% silver = .38 oz silver content
Silver price at $1.34/oz X .38 oz = 51c of silver per each 50c piece (in addition to production costs to mint).
Indeed at 1919 silver prices, 92.5% content, coin minted would be at a loss, assuming my calculations are correct.
Edited by wildflowerAB
11/16/2015 12:55 am
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Pillar of the Community
United States
4233 Posts |
wildflowerAB - The 5c went to .800 in 1920 along with everything else, but was still silver until 1922. What's odd to me is that in 1921 the US minted almost 87 million Morgans with no change in silver content, the highest mintage for this series. Meanwhile Canada went and created the 1921 50 cent thing by minting, holding, then melting. Seems like a lot of messing around going on, and the Great Depression on the horizon. Must have been interesting times, when money was worth more than money.
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Pillar of the Community
Canada
1984 Posts |
kbbpli: Oops....I had the decimal off.....yes it looks like the value was over face.
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Pillar of the Community
Canada
2845 Posts |
Kbb yes I also suspect there was some skulduggery happening as well. History would be much more interesting if it wasn't always so cleansed before it hits a blank page. Somewhere in my reading I noticed the US specifically passed legislation in about 1918 that made it illegal for anyone to export coins for melt, yet Canada knowingly allows this to happen, only takes action when the price of silver finally rises too high? As pointless as minting coin for melt appears on the surface, it obviously enabled RCM to produce higher volumes, buy more silver, etc. Then there's the added possibility of gold and silver global price manipulation......what really occurred in and around 1919 would make for a really interesting study. |
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Bedrock of the Community
Australia
21786 Posts |
Certainly, there was a spike in the World bullion silver price in 1920.
The British government had to reduce the fineness of silver circulating coinage from .925 to .500 in that year.
The South African Government introduced an indigenous coinage in 1923, with an 800 silver standard.
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Replies: 19 / Views: 3,555 |
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Posted 11/15/2015 06:43 am
