Why do GAE and GML have different carats?

moursund

Ok, so gold maple leaves are .9999 pure gold.
But gold american eagles are a mere .9167 gold, with a bunch of silver and copper in there also.

Why?

am

flaminio

GAEs were created as an alternative to Krugerrands when the importation of those coins was banned. Therefore, they were made with the exact same alloy as the K-rands.

GMLs are .9999 fine more as a marketing gimmick than anything else -- something for the Canuckistani to differentiate their product from the other gold bullion products out there.

It's important to keep in mind that both coins contain the same amount of gold, as stated on the coin.

WilliamGibbs

The U.S. Mint has authority to issue a higher fineness gold American Eagle, if it determines it has a market for the coins. It would not have to seek congressional approval, since a law passed since the original legislation authorizing the gold American Eagles granted the Treasury secretary authority to issue a higher fineness gold bullion coin.

William T. Gibbs
News Editor
Coin World

truthteller

Canadian Maple leafs have a worldwide audience. Many asian buyers will not buy anything but .9999 fine gold or platinum coins. In addition, many buyers in India will not buy lower finess gold. Thus, CML meet the criteria for sales in Asia and most of the world.

TRUTH

moursund

Is the GAE more wear-resistant than the soft (sissy) canuck gold, being of a tougher alloy? It also looks like a different color, based on the 1/10 oz example of each that I own...

am

Conder101

Yes they would be more wear resistant and the color should be slightly different.

stman

When I was buying gold bullion, once I learned about the difference between the Maple Leaf and the GAE, I chose to stick with the Maple Leaf. Yes they both have the same ounce of gold in them and they usually trade for the same but, if prices were to go sky high on gold, the GAE might trade for less. Because they could tell you they need to refine the gold out of it..