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Why So Expensive? Canada Gold Maple $200

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New Member
Australia
3 Posts
 Posted 07/23/2021  9:02 pm Show Profile   Bookmark this topic Add zachsteinman to your friends list Get a Link to this Message
Please anyone can explain why is this $200 2oz Gold Maple Leaf so expensive?

It was already expensive $7,299.95 at mint.ca but when I tried to purchase, at checkout the page said Unavailable. I found one in Hong Kong for 77,500.00 HK but now they're asking more "please contact us for pricing and availability". One guy sold on ebay for 9999.99 but now it is $17,000. What is the explanation, please?
Edited by zachsteinman
07/23/2021 9:05 pm
Bedrock of the Community
Australia
19078 Posts
 Posted 07/23/2021  9:20 pm  Show Profile   Bookmark this reply Add sel_69l to your friends list Get a Link to this Reply
Perhaps poured bars would be a better way to go.

It is very necessary to closely examine the buy and sell margins that apply to every bullion product.
Don't proceed unless you have researched and seriously considered these margins beforehand.

As pointed out by the OP, these margins have the ability to seriously downgrade what may otherwise appear to be a good investment.
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Canada
8574 Posts
 Posted 07/23/2021  9:27 pm  Show Profile   Bookmark this reply Add DBM to your friends list Get a Link to this Reply

Quote:
What is the explanation, please?
Supply and demand.
"Dipping" is not considered cleaning...
-from PCGS website
Bedrock of the Community
United States
20393 Posts
 Posted 07/23/2021  10:48 pm  Show Profile   Bookmark this reply Add just carl to your friends list Get a Link to this Reply
Ask anything you want. If someone will pay it, then that is the new cost.
just carl
New Member
Australia
3 Posts
 Posted 07/24/2021  09:27 am  Show Profile   Bookmark this reply Add zachsteinman to your friends list Get a Link to this Reply

Quote:
Supply and demand.


@DBM I agree to that but still can't explain the nearly $3000 difference between Hong Kong coin trader/distributor and eBay.
New Member
Australia
3 Posts
 Posted 07/24/2021  09:37 am  Show Profile   Bookmark this reply Add zachsteinman to your friends list Get a Link to this Reply
The mint released the same coin in 1oz Silver, that coin had a decent gain in the price (tripled so far) but it's consistent trough all sellers and countries, somewhere between $250 - $350 but the gold coin seems to have wildly different prices everywhere. I'd understand a double price, let's say $14,000 or - $15,000 but 17? :o :(
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Canada
4265 Posts
 Posted 07/24/2021  09:50 am  Show Profile   Bookmark this reply Add oriole to your friends list Get a Link to this Reply
Sometimes there is no logical reason for a huge spike in prices. The perception that prices will go up may cause them to rise due to speculation, where the supply is limited.

I avoid anything with unstable prices. It is as likely to drop suddenly as it is to rise suddenly.
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United States
3366 Posts
 Posted 07/24/2021  10:15 am  Show Profile   Bookmark this reply Add Zurie to your friends list Get a Link to this Reply
The ask price is meaningless, since it may never sell at that price. But there are 3 available on eBay, all priced between 17 and 20K, so I guess it will depend on what one actually sells at.
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United States
5063 Posts
 Posted 07/24/2021  5:49 pm  Show Profile   Bookmark this reply Add tdziemia to your friends list Get a Link to this Reply

Quote:
Supply and demand.


Quote:
The ask price is meaningless, since it may never sell at that price.


Quote:
If someone will pay it, then that is the new cost.


I agree that this is the situation. There are apparently relatively few of these up for sale right now, so sellers will try to make a killing.
If someone wants to actually pay $17,000 to have one (but apparently NOBODY has), then that becomes the current value.

But until there is evidence someone has paid that much ...
Edited by tdziemia
07/24/2021 5:50 pm
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Canada
1636 Posts
 Posted 07/25/2021  06:25 am  Show Profile   Bookmark this reply Add Wrekkdd to your friends list Get a Link to this Reply
Have you seen the price of the 2500$ gold coin? Super low mintage so they sell it at a stupid mark up lol there is a gold coin on page 2 https://www.mint.ca/store/buy/all-c...evVisit=true priced at 105,000$ 45 minted
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Canada
1636 Posts
 Posted 07/25/2021  06:27 am  Show Profile   Bookmark this reply Add Wrekkdd to your friends list Get a Link to this Reply
But the coin is for 2021, the mint is really becoming a business. They can decide to min how ever many they want but mint 50 and sell them for 100k a piece or mint 100k and sell them at 50 a piece. Kinda controlling the bullion market. And they could depreciation in value, a crazy investment that's for sure.
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United States
5063 Posts
 Posted 07/25/2021  10:45 am  Show Profile   Bookmark this reply Add tdziemia to your friends list Get a Link to this Reply

Quote:
Kinda controlling the bullion market.


You mean controlling the Canadian new issue bullion coin market? (which is their prerogative?)

I assume Canadians can buy other gold at market prices.

Since the bullion value of a 1 kg pure gold coin is something like $73,000 Canadian at the moment, a numismatic value of about 40% above bullion is built in for the scarcity.

Agree it's a bit of a risk, though there's demand right now for all kinds of silly stuff, like invisible sculpture.
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Canada
1636 Posts
 Posted 07/25/2021  10:51 am  Show Profile   Bookmark this reply Add Wrekkdd to your friends list Get a Link to this Reply
@tdziemia, thanks for correcting me there. Absolutely right didn't mean bullion market, but selling 50$ worth of gold or 150$ for 100,000$ is like selling a masterpiece work of art lol, seems a bit overboard.
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104611 Posts
 Posted 07/26/2021  09:32 am  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply
to the Community!

Your post was moved to the appropriate forum for the proper attention.
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Canada
508 Posts
 Posted 07/26/2021  7:32 pm  Show Profile   Bookmark this reply Add vonigohcr to your friends list Get a Link to this Reply

Quote:
Please anyone can explain why is this $200 2oz Gold Maple Leaf so expensive?


In the world of non-circulating coins there are both precious metal bullion and collector coins. Generally speaking, bullion coins are minted to an "Brilliant Uncirculated" standard and most coins are minted in large if not massive quantities. These are available at bullion dealers for the market price of the precious metal + a small premium to allow the dealer some margin on the transaction. Recently the premium has been higher than usual for a number of reasons that are discussed on the Precious Metal forums. Occasionally, a bullion coin will go for a significant premium based on some measure of desirability vs. rarity... Australian Swans or older Chinese Pandas come to mind but remember that any premium you pay is a potential loss if the value of the underlying precious metal is stable as dealers will only pay market price (or sometimes slightly lower) for a bullion coin. When buying bullion, you are speculating that the value of the underlying metal will appreciate over time such that your purchase premium is covered at the time you choose to sell.

The coin the OP listed though is one of the other category... collector coins. These are typically sold by the various world mints at significant markups. They tend to be struck to a higher quality... specimen or proof and have specific mintage amounts. This coin while appearing on the surface to be just another 2oz gold maple leaf, was minted in proof quality with a "super incuse" maple leaf... clearly intended for a collector market... not a bullion investor. The RCM usually sells gold collector coins at around 1.6x current spot price and depending on perceived desirability and rarity the value can go up or down. Most mints issue too many collector coins and you can often purchase a release from a few years earlier at auction for much smaller multiples than the original sale price... that said, there are always the rare items that go up in value and retain that value.

While bullion issues can be purchased for collections, most are purchased as an investment vehicle. Collector coins should never be purchased for investment purposes as it is highly unlikely that you will return your investment... Collector coins are for a collection hobby... so in that respect, they do have more in common with a work of art though nobody would accuse the proof incuse maple leaf of being a Mona Lisa.


Quote:
I assume Canadians can buy other gold at market prices.

Today's bullion spot price is $1,799USD My local Bullion Dealer (Vancouver Canada) will sell you a 1oz bar for $1861 (3.4% markup) a 1oz Maple Leaf for $1,880 (4.5% Markup), a 1oz Gold Eagle for $1,979 (10% markup) and a bunch of other non Canadian, special issue or other weight options for similar reasonable markups. (All prices in USD) Most LCS I know refer to other internet dealer prices for collector coins so the actual price of any item "sold out at the mint" will be whatever the market is prepared to pay.

My only comment on eBay is as noted above.... You can ask for the moon for anything on eBay... doesn't mean the sale closes. Only look at "Sold" listings on eBay and if a seller is serious about moving an item and have a "Make an Offer" option, you can often make a successful offer more consistent with a price closer to current market value. Just remember... if paying more than 5-10% over the bullion spot price for a coin you had better want it for a collection... It doesn't make fiscal sense otherwise.
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Canada
1636 Posts
 Posted 07/27/2021  08:29 am  Show Profile   Bookmark this reply Add Wrekkdd to your friends list Get a Link to this Reply
So the gold coins the mint is selling for 100,000$+CAD how much of a mark up is that compared to the bullion price? Like 1000% markup lol only like 5-10 minted for the ones I'm talking about. Mayb up to 40
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