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 Replies: 9 / Views: 4,561 |
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Pillar of the Community
United States
667 Posts |
I was thinking about the face value for each coin. The American Silver Eagle has a face value of $1 while the Canadian Silver Maple has a face value of $5.
On the surface each coin has the same melt value. Not counting any collector type premiums they are worth the same melt value for silver.
However lets just say something weird takes place and silver falls below the $5 dollar mark. Would it not be better to have the Canadian Silver Maple provided that the exchange rate is pretty close between the US Dollar and the Canadian Dollar?
The exchange rate for the Canadian dollar would have to hit 20 cents to 1 dollar to be even.
I know a lot would have to happen but I see the Canadian Silver Maple as the better buy am I wrong? Edited by mkfarm
10/19/2010 7:17 pm
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Pillar of the Community
Canada
3692 Posts |
By that time the Canadian dollar will be at 5:1 to the American anyways, or it would be fixed that way. Who knows. Unless they didn't see that loophole. But how many everyday people have even seen a silver maple or even accept it in everyday transactions? Well, I would, but I'm saying that if I saw some weird new coin being handed to me I'd rethink it before accepting it.
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Pillar of the Community
 United States
667 Posts |
I can see your point if you had to use it for emergency money. But since I am close enough to cross the border that would not be an issue. So dropping a few coins for cash would not be an issue for me.
I know things would really have to get weird but I still think there is a strong advantage.
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Pillar of the Community
United States
2424 Posts |
my inlaws bought the first issue 1988 RCM $5 silver rounds back when silver was 5 or $6 I cant remember... anyway, I was looking around at ebay and found that that year, 88, held a significant premium, at least $10 over melt. I dont know if all dates are the same, but I imagine its the same for the ASE's. however, my inlaws $5 silver rounds were still in their original RCM packaging... |
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Valued Member
United States
108 Posts |
have complete sets of both. Have often wondered why the ASE is a dollar and the Maple is 5 dollars also if the extra 9 on the Maple means nothing as I have been told why even use it. I like the look of the ASE but I think the Maple is a better value. They need to but the canoe from the dollar on the Maple |
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Valued Member
United States
167 Posts |
The RCM might have set at $5 thinking that at the time they could then justify a price of slightly higher than just the silver because of the base value. they might have figured that so long as silver was $3 then the coin with a face value of $5 could still easily be sold at $6 or $7 or more. |
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Valued Member
United States
364 Posts |
I agree with Missouriblue, buy some of both. Right now I would be picking up Silver Wolves if I were you -- if you don't have to pay much of a premium -- but on any other day I think the key is to have silver that appeals to anyone during a barter situation. That means variety. This is if you're more of a prepper in mentality. I'm an investor with this metal. I believe that the scenario you describe would simply never happen because it betrays what the silver is for -- it's a hedge. If we're in the days of a deadbeat dollar and some guy comes up expecting his Maple Leaf to be worth five ASE's because of what's stamped on the front, then I'll politely reply that he's absolutely right, and relate my tale of getting a gold quarter eagle from another person for three ASE's. This is before I politely show him the door. |
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Pillar of the Community
 United States
2448 Posts |
Where are you finding Canadian Wolves? Enquiring mind want to know.
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Valued Member
United States
426 Posts |
I know whenever I have coins left over from trips overseas they suffer from a discount when exchanging them that is if I can even exchange them. If the value of silver was to go that far down where these coins would have to be used for face value I wonder if the fact that they are coinage would have a effect on the value.
Either way great question! I hope we never find out.
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Bedrock of the Community
United States
17884 Posts |
The scenario mentioned in the first post has occured in the past when silver dropped below $5 an oz. Some people did try and spend the maple leafs (And the Olympic commemoratives) and the Canadian government refused to accept them. Eventually after many complaints they did agree to accept them but with tight restrictions on redemption and locations where they could be redeemed.
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Replies: 9 / Views: 4,561 |
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Posted 10/19/2010 7:26 pm
