$100 coin for $100 (Buffalo design)

nibanny

...they call it Bison! Or are they different animals?

One ounce of Silver for CA$100 shipped to your door. 50,000 mintage and limit of 3 per household.

What say you? Flipper item, cool first issue, overpriced silver coin?

Weiss

These recent Canadian pieces with precious metals and face values at issue price are kind of deceitful.

There is a lot of game theory going on here. And maybe something more.

From the outside, you have nothing to lose: $100 for $100.

But these are non circulating legal tender (NCLT). And Canada plays their NCLT card differently than you might expect.

Long and short: They'll probably be good pieces to flip.

But if someone told you they'd sell you a pretty modern one ounce silver bullion coin for $100, when the price of silver is ~$25, would you take it?

I know I wouldn't.

Baley

<< <i>These recent Canadian pieces with precious metals and face values at issue price are kind of deceitful.

There is a lot of game theory going on here. And maybe something more.

From the outside, you have nothing to lose: $100 for $100.

But these are non circulating legal tender (NCLT). And Canada plays their NCLT card differently than you might expect.

Long and short: They'll probably be good pieces to flip.

But if someone told you they'd sell you a pretty modern one ounce silver bullion coin for $100, when the price of silver is ~$25, would you take it?

I know I wouldn't. >>



If it's "legal tender for all debts, public and private" like in the US, someone has to take it for a debt owed denominated in the host currency; they are NOT obligated to take it for a transaction under negotiation.

If the rules are different in Canada, expect a potential "scandal" someday. If same rule applies, someone is taking a risk. The US set the "face value" comfortably low, in case someone someday drags an asteroid back to Earth, or discovers ways for a solar still to extract free gold from seawater, for example (not next year probably, but any of us might live to see either, IMO)

OPA

How true.. I found that out the hard way while vacationing in Germany 1992 (pre Euro era) and tried to use one of their 10DM silver unc. commem. coins. No one would accept it as cash for merchandise.

nibanny

Banks in Canada are mandated to accept these coins, though they need to send a letter to the RCM to get refund.
It means that it will be hard to spend them.
The Canadian Govt on the other hand has already demonetized the Olympics coin back in the 80's.

It is curious that the RCM has raised the face value following the Monnaie de Paris even though they are not linked to the metal content.
I am expecting other mints to follow them.

illini420

Awesome coin! I bought a few of the $20 coins for $20 from the Mint, mostly to use as neat raffle prizes for the local coin club. None of us in SoCal will probably ever try to spend them in Canada, but given their face value it is almost certain that we'll always be able to sell them to another U.S. collector for at least face value (in Canadian money) regardless of what some of the banks in Canada do if you try to deposit them. Really thinking about getting one of those buffalo coins...

MsMorrisine

Bison is the taxonomically correct term.


I think the design is uninspired.

I'd be interested to hear of flipping results. 50k mintage seems like a lot.

DrBuster

They won't redeem for dollars. Big to-do already about the 20s and legal mumbo jumbo last year I thought...

Timbuk3

Interesting, thanks for the heads-up !!! ")

element159

I think the design looks cool, but I wouldn't pay $100 for it.

I don't understand how Canada minting coins that say '$100' on them that aren't really/easily good for that is good though.

PerryHall

Agree that they are overpriced bullion. Good luck trying to spend them for face value. No thanks.

tneig

I think its embarrassing for them to do this.

$38 coin, $62 premium is all.

illini420

Well apparently quite a few people like this coin. Called the Canadian Mint to order today and they're already sold out!!!!

Zrider

Well the US makes a one dollar coin with about five cents worth of Magnesium ..what s wrong with making a 22 dollar silver coin that's worth 100 dollars. I would not call this bullion, I think its more like Money should be ..JMO

s4ny

<< <i>Well the US makes a one dollar coin with about five cents worth of Magnesium ..what s wrong with making a 22 dollar silver coin that's worth 100 dollars. I would not call this bullion, I think its more like Money should be ..JMO >>



But, it's not money. Unlike regular Canadian currency, nobody is obliged to take it as payment and even banks
will not exchange it for Canadian currency.

It is not quite money.

ricko

Simply an ounce of silver.... would not pay $100 for that coin...Cheers, RickO

agentjim007

I cancelled my order for 3 took that money and put towards a Canada 1914 $5 from the recent hoard. Bought off ebay last night for $155 more over melt than the melt of 3 of the new $100's. ( I paid $390 over melt for a historically rare key date coin in nice BU, 1900 released. Or 3 new $100's for $235 over melt not including exchange fee and postage. That's an extra $155.) I also got $14 in eBay bucks
One thing I can say positive about the new $100's is considering how fast they sold out (One day I think, 50k at a 3 coin limit) does show a strong interest in Canadian coins. When the herd figures out what's scarce my mini hoard of 1914 $5's should take off.

Weiss

The funny (or stupid) thing about this whole controversy is that it's largely the ridiculously high "face value" that has caused this issue in the first place.

If they'd put a "face value" of $5, or maybe $10, it seems unlikely people would ever spend them--even if silver dipped below those values.

But put a $100 face value on it, people are going to consider spending them. And that may ultimately be their undoing. Maybe not this issue, and maybe not the next one. But eventually, if enough people try to spend these at face.

So the gimmick that the Royal Canadian Mint is using to lure people into buying these pieces of overpriced bullion may eventually lead to their demise.

If I were Canadian and I'd bought one of these, I'd contact the attorney general or its equivalent. It looks an awful lot like outright fraud to me.