$50 Gold Maple Leaf Obverse and Reverse

The Canadian Gold Maple Leaf is the official bullion gold coin of Canada,  was designed by Walter Ott and is produced by the Royal Canadian Mint. It is one of the purest gold coins of regular issue in the world, with a gold content of .9999  fineness  with some special issues .99999 fine. That is, it contains virtually no base metals at all, only gold exclusively from gold mines in Canada.

The coin was first introduced in 1979 and has been in continuous production longer than any other pure gold bullion coin. At that time, the only available bullion coin was the Krugerrand, which was not widely available because of an economic boycott of South Africa due to apartheid. Coins minted between 1979 and 1981 have gold content of .999.

Each gold Maple Leaf coin features the image of Great Britain’s Queen Elizabeth the second, along with the denomination and date of issue, on the obverse side…and an image of Canada’s national symbol, the maple leaf (from which the coin derives its name), on the reverse side, along with the name of the country and the level of purity of the gold, listed in both English and French.

The coin is offered in 5 different sizes from 1/20oz to 1oz denominations and is guaranteed to contain the stated amount in troy ounces of .9999 fine gold (24 carat). The coins have legal tender status in Canada, but as is often the case with bullion coins, the face values of these coins (C$1, C$5, C$10, C$20 and C$50) are purely symbolic and are much lower than their market value.

Production details:

The coins are all identical in design except for the markings on the obverse and reverse sides indicate the weight and face value of the coin. In 1994, 1/15 oz  ( $2 face value) gold and platinum coins were issued, possibly for jewellery. They were not very successful and so 1994 remains the only year that 1/15 oz coins were produced

In 1997, the Royal Canadian Mint also began producing new “five-nines” one ounce Gold Maple Leaf with a face value of $200 Canadian, the highest face value of any one ounce legal tender bullion coin.

Gold maples were never designed to be handled, the softness of 24 carat combined with the milled edge and clear field around the Queen and the tube storage supplied means the coins easily show handling marks.  This is a standard problem with pure gold and the bullion was never intended to be handled but rather kept in vaults as an investment

The classically beautiful Gold Canadian Maple Leaf coins are internationally recognized and the government of Canada guarantees the unsurpassed purity, weight and legal tender value of every gold Maple Leaf. They  provide investors and collectors with coins that can be both a secure and internationally-recognized addition to a well diversified investment portfolio.

The Maple Leaf is 1 oz  coin is a winner, especially when  compared to American Eagle because the Royal Canadian Mint readjusts prices to market changes more readily than U.S. Mint. These coins are usually  traded with premium of 4 to 5% dependant  on the quantity and , with up to 10% with coins sold separately or in small batches. Obviously, the smaller denomination coins have a higher premium so they do not always have the same success with investors.

Specifications:

The largest bullion coin in the world

On May 3, 2007, the Royal Canadian Mint unveiled a Gold Maple Leaf coin with a face value of One Million Dollars though the gold content was worth over $2 million at the time. It measures 50 cm in diameter by 3 cm thick and weighs 100 kilograms, with a purity of 99.999%. The 100-kilogram coin was conceived as a one-off showpiece to promote the mint’s new line of 99.999 per cent pure one ounce Gold Maple Leaf bullion coins but after several interested buyers came forward the mint announced it would manufacture them as ordered and sell them for between $2.5 million and $3 million.

Maurice Hall

Krugerrand- the first bullion coin obverse

The South African Chamber of Mines had an inspired idea to help market South African gold. It was to issue a one ounce bullion coin, to be sold at a very low premium over the intrinsic gold value. The Krugerrand was introduced in 1967, as a vehicle for private ownership of gold. It was actually intended to circulate as currency. Therefore it was minted in a more durable gold alloy ( the same as the British Sovereign), unlike most other bullion coins and contained 2.826gms of copper  to resist scratching and gives the coin its golden hue. The Krugerrand was the only accessible gold investment opportunity for the everyday buyer, it was the first coin to contain exactly one troy ounce of gold, and was intended from its inception to provide a way for the private investor to purchase gold.

Despite the coin’s legal tender status, economic sanctions against South Africa for its policy of apartheid made the Krugerrand an illegal import in many Western countries during the 1970s and 1980s. These sanctions ended when South Africa abandoned apartheid in 1994, the krugerrand once again regained it status as one of the worlds leading bullion coins

Originally only one size was issued, which contained one full troy ounce (31.1035 grams) of fine gold. This was originally known as a Krugerrand, or Kruger, for short. From 1980, three other sizes were introduced, namely a half, quarter, and tenth ounce size. The Krugerrand derives its name from combining the names of Paul Kruger, a well-known Boer leader and local hero who went on to become the last president of the Republic of South Africa, and the “rand” – the monetary unit of South Africa. The obverse side of the coin is detailed with a profiled bust of President Paul Kruger and features the name of the country, “South Africa,” in the country’s two native languages, English and Afrikaans. The reverse side of the coin features the image of a springbok antelope, one of the national symbols of South Africa.

By 1980 the Krugerrand accounted for 90% of the gold coin market. Although not a beautiful coin, many millions have been sold since its introduction as the 1 oz coin can be purchased at very little premium over gold bars. The success of the Krugerrand led to many other gold-producing nations minting their own bullion coins, such as the Canadian Gold Maple Leaf in 1979, the Australian Nugget in 1981, the British Britannia coin in 1987 and the American Gold Eagle in 1986.

The South African Mint Company produces limited edition proof Krugerrands intended as collector’s items. These coins are priced above bullion value, although non-proof Krugerrands also have a premium above gold bullion value. They can be distinguished from the bullion Krugerrands by the number of serrations on the edge of the coin. Proof coins have 220 while bullion coins have 180.

Maurice Hall

Reverse of the Mexican 50 Pesos featuring winged victory

The Mexican 50 Pesos gold coin is not very well known in the UK, but its many qualities are more than enough reasons to make it an excellent investment if you are looking to invest in gold coins for the long term. This coin has great aesthetic value, large mintage (now ended), strong historical value and a very low or non existent premium.

Let’s begin with its characteristics.  The beauty of the coin is initially striking.  It is 20% bigger than a one ounce Eagle, its American sister making it a large “bullion” coin.  It is 22 carat  with 10% copper to ensure that the coin is hard wearing and has an attractive colour.

The image of Winged Victory makes the 50 Pesos Centenario one of the most beautiful coins in the world

A small history lesson is required to explain the image – in 1910, Mexico celebrated the 100^th anniversary of the beginning of the war of independence with Spain. To commemorate the centennial, a huge victory column was erected in the centre of Mexico city, crowning the column is a 6.7 metre sculpture in bronze covered in 24 carat gold  and representing winged victory is   “ El Angel de la Independancia”, the Angel of Independence.  The angel represents Athéna Niké (Athéna brings victory), the famous Greek winged Goddess.

Located on the reverse of the coin, she holds a laurel crown in her right hand to symbolise victory and holds a broken chain in her left hand, to symbolise  liberty.  Two famous Mexican Volcanoes, Popocatépetl and Ixtaccihuatl, are situated in the background.  The date located in the bottom right is the year the coin was struck whilst 1821 is the year of independence.

Mexican 50 Pesos obverse with the national emblem

The obverse features an image of the national emblem – an eagle perched on a cactus eating a snake.

The edge of the coin reads « INDEPENDENCIA Y LIBERTAD »

Engraved by the artist Emilio del Moral, it was first minted in 1921 by la Casa de Moneda de Mexico to mark the 100th anniversary of independence (hence the name “Centenario” for the 50 Pesos coin).  The 50 Pesos coin therefore pays homage to the independence of Mexico.

More than 12 million coins were minted between 1921 and 1972.  The majority are dated 1947, but this is mainly due to 3 975 654 coins being re-struck between 1949 and 1972.  Only 309 000 coins were actually minted in 1947.  Re-struck  coins and coins dated 1947 are always of a very high quality however coins from earlier years are often rarer and therefore more expensive.

The 1943 dated coin of which 89 000 examples were  minted has a bigger diameter of 39mm but the same weight.  Very rare!

Today, the coin is a great success in the Hispanic world, mainly in Spain and Latin America.  The increase in popularity of the Kruggerand in recent years has however somewhat overshadowed the attractiveness of the 50 pesos coin for other investors.

A long term investment choice

Even if the differential premium for this coin is very low, it is a wise choice for investors looking to invest in gold coins for the long term.  It is in fact one of the lowest premium coins and as such can be purchased for practically the same price as gold.  It is obvious that in the case of a crisis, even the premium of this coin will rise, in particular in Hispanic countries.  In contrast to the Krugerrand, production of the 50 Pesos has finished and therefore the coin will one day become rare.  Avoid buying this coin directly from individuals as it has been widely copied and there are a large number of often crude fakes in circulation.

Buying 50 Pesos today to resell them when the premium has risen could prove to be a very wise choice.  You just need to be very patient and must not buy from just anyone.

Diversify when buying gold coins and consider  the 50 Pesos Centenario as  it has everything you need.

Did you know?

When Americans regained the right to own gold on the 31st December 1974, the Mexican 50 Pesos coin rapidly became one of the flag bearers for the physical gold industry.  The Krugerrand was not well known enough at the time.

Many transactions between Mexico and the USA were carried out using gold coins.  These gold transactions no longer occur today, but who knows, perhaps bank notes will become unfashionable some day and then…

Don’t be put off by last weeks sell off in gold as it was not physical gold that was sold but paper gold.  No one sold their sovereigns, eagles ,napoleons, kuggerands.  Nor did the Chinese, Indian or Russians sell gold from their national vaults. Do not think we are about to experience a reversal in value of gold.  World output of gold has declined by 1 million ounces annually since 2001.

All indications are that we should expect an impending gold shortage. Total ETF holdings of the yellow metal now exceed total world production. South Africa suffered its steepest decline in gold production since 1901, falling 14%, to a mere 232 tons. It now ranks only third in global production of the yellow metal, after China and the US.

Here’s a chart that goes back over 30 years. It’s clear that gold output from South Africa is steadily falling and the rest of the world has not yet taken up the slack.
South African mines are, overall, getting so deep, hot and dangerous that they are on the edge of a major rapid decline in gold output. Rising production costs have driven the global breakeven cost of new gold production up to $500 an ounce. It takes a lot of labor, fuel, and heavy machinery to get gold out of the ground, and none of these are getting any cheaper.

Political risks are heating up. In the meantime, the financial crisis has driven a surge to the safety  of physical gold pushing demand for gold bars and coins to all time highs. The big gold players China, India and Russia are building their reserves so that they can meet international commitments with gold as they are carefully moving away from the waning USD, the fallback international currency.

Last year, the US Treasury ran out of blanks for one ounce $50 American Gold Eagle coins and major mints in Europe reported dramatic increases in production in the latter half of 2009. This shows that American citizens are waking up to the need to own some gold and when they are fully awake it will drive a  huge increase in demand. Some  European countries and notably the French, are fully aware of the power of gold and in particular gold coins, that hedged currency devaluations and political turmoil throughout  the 20th century. Consequently they continue to put their faith in gold to hedge financial instability in the 21st.  Competitive devaluations by most central banks mean that currencies are not performing as the hedge that many had hoped. It all has the makings of serious gold shortage for the future. The current downturn has to be just a blip in the long term bull market.

Now is the time to carefully watch the spot price as it is possible that gold may fall as low as $1030  and that will be time to buy, as it is predicted that we could be seeing $1500 the fourth quarter as demand increases.

Dubai the capital of the United Arab Emirates (UAE) with its $90 billion economy has long been  the trading post  of the Middle East. This wealth has lead to the development of many extravagant buildings and hotel complexes. It has been called the shopping capital of the world and has over 70 shopping malls including the worlds largest.  Thousands  travel to Dubai from all over the word to attend the shopping festival the is held in February of each year.  Dubai is is also famous for it gold souks and is a centre for the gold trade in the  ME.  It is no surprise that there is a proposal to introduce a new legal tender coin.

The Dubai Multi Commodities Centre (DMCC) has proposed to the UAE Central Bank the launch of a legal tender gold coin which if approved will be the first of its kind in the Middle East. Existing gold coins such as the Australian Nugget and South African Krugerrand are popular among buyers as a vehicle to invest in pure gold.

The proposed design depicts the image of President His Highness Shaikh Khalifa Bin Zayed Al Nah-yan on one side and that of the Burj Khalifa, the world’s tallest tower, on the other.

The 828-metre Burj Khalifa in Dubai is a symbol of international co-operation. The tallest free standing man-made structure, it is also one of the most recognised landmarks in the world.

“We are confident this design represents the face of the modern UAE and its aspirations. This is a great time to launch a reliable, easily transacted legal tender gold coin, since the current level of interest in gold investment is the highest it has ever been globally, the timing couldn’t be better.

“As the only commodities centre in the region, DMCC has all the required expertise and experience to lead such a prestigious project,” Ahmad Bin Sulayem, Executive Chairman of DMCC, said in a statement.

DMCC launched the UAE’s first souvenir commemorative gold coin in September 2007 under the Visions of Dubai series. The 22-carat coin proved to be highly popular with buyers.

Designed to reflect Dubai’s visionary leadership and the emirate’s innovative projects, the first edition carried the image of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai on one side and that of the Burj Al Arab on the other. A second series of the coin in 24 carat gold carries Shaikh Mohammad’s image on one side and the Palm Jumeirah on the other.

India is the worlds greatest user of gold mainly in jewellery but the article below, first published in Hindu Business Line, describes how India has found comfort in gold by raising its gold reserve to meet international commitments. What is also significant is that the “new comers” to the gold market and now amongst the leaders, India,China and Russia are revitalising the role of gold as a reserve currency as faith in the USD continues to falter.

Ten years ago, almost to the day, Robert Mundell, the Economics Nobel laureate for 1999 predicted that, over the next decade, gold would play a very major role in the world’s central bank reserve systems. As it turned out, the world took almost that many years to realise the importance of his forecast; today, most European central banks and the US Fed hold more than 60 per cent of their foreign currency reserves in gold. Mundell made his prognosis against the grain because, all through the previous two decades, the central banks of developed countries had been selling their gold; in 1999 the Bank of England sold half its official gold reserves, as did its European peers. That trend has reversed only of late as the volatility of the dollar — the official reserve currency — has forced central banks to review gold as a stabilising reserve currency.

It is against this backdrop that the Reserve Bank of India’s decision to buy 200 tonnes of gold from the International Monetary Fund for $6.7 billion recently must be viewed as a welcome step in fortifying its foreign exchange reserves. One of the paradoxes of India’s hugely successful efforts since 1991 to shore up its reserves (currently estimated at $285 billion) is that they are mostly in a basket of foreign currencies that are subject to volatility and disruptions. With the dollar increasingly under stress since the huge build-up in the US economy’s deficits and the Fed’s pump-priming, most central banks, and particularly those of the emerging economies, have been looking to hedge their reserves. Gold prices move inversely to dollar values, which is why the Chinese and Russian central banks have been steadily building up positions in the yellow metal. The RBI purchase will not alter the reserves portfolio substantially; before the recent purchase, just 3.5 per cent of the total was in gold, but the move is part of a plan to buy more of the precious metal in tune with the trend among the world’s central banks to diversify their asset base. It is still too early to visualise the global trend’s impact on the dollar as the world’s reserve currency but the increasing popularity of gold purchases among central banks will certainly revive the Russia-Brazil inspired discussion on an alternative reserve currency.

For India, the most comforting factor in this purchase, apart from the psychological one of helping the IMF raise resources for its lending programme, is the distance it has travelled from 1991 when, with just one billion dollars in reserves, it pledged some 60-odd tonnes of reserve gold to meet international commitments.

British gold is rare indeed. Unlike the vast mining industries in Nevada, China and South Africa, gold reserves in the UK are modest. Most mines have been alluvial where the precious metal has been sifted from rivers and silt rather than dug from rock. Gold has been mined in the UK since around 600 BC when the first mine was opened in Wales. One of the reasons the Romans invaded Britain was that they believed it to be rich in precious metals. More Roman gold artefacts have been found in Britain than anywhere else in Europe.

Wales

Gold has been mined in Dolaucothi Wales since prehistoric times. The pre-Christian Celtic chiefs wore fine gold torcs and armbands and became wealthy as a result of metal trading. The Romans later controlled some of the mines, developing large-scale mining operations. During the Roman occupation, British metalwork was widely circulated. Reaching their peak during the great expansion of the Celtic Church in the 8th century AD, Celtic goldsmiths produced work of unrivalled craftsmanship. Later, the Welsh princes became wealthy and powerful rulers due to rich supplies of metal ores.

The Acts of Union passed in 1536 and 1542 made mining rights the property of the English Crown and royalties of 4% are still payable to the Crown on any gold mined in Wales. Welsh gold, which is mined by hand, is found in an area stretching from Barmouth, past Dolgellau and up towards Snowdonia. Welsh gold-bearing rock lies in seams, like coal, and has been known to yield up to thirty ounces per tonne.  Gwynfynydd Gold Mine in Dolgellau opened in the 1860s and was one of the richest gold mines in Britain with a recorded output since 1884 of more than 2,000 ounces of fine gold. Gold was first worked on a serious scale at. In 1862 a small scale British gold rush was triggered by the Clogau mine, which excavated more than 165,031 tons of ore and was a key producer of gold on a serious scale

Welsh gold due to its rarity is very expensive and has a distinctive rose colour.  The Clogau and Gwynfynydd mines are the only mines to have recently produced significant quantities of gold, and it is from these two mines that gold for the Royal wedding rings, traditionally made of Welsh gold, has been obtained. In is rumoured that the queen obtain a kilogram of welsh gold many years ago to ensure sufficient remained for more royal rings

Scotland

Scottish Highlands are famous for many things: ancient mountains, sparkling lochs, whisky and wildlife. But now a new and highly lucrative attraction has been found in the Highlands - gold.

An Australian-funded mining company has made several large finds of gold, potentially worth hundreds of millions of pounds, around the small village of Tyndrum.

The company, Scotgold, already owns a small mine near Tyndrum known as Cononish. First drilled 20 years ago, Cononish has never been commercially worked, until now where it is estimated that 4.5 tonnes of gold lie buried worth £100m..

The local community trust and tourism officials are discussing plans for a gold mine visitors centre in the village, gold panning “experiences” and jewellery boutiques selling rings, brooches and necklaces of “Tyndrum gold” to passing tourists at premium prices.

Chris Sangster, the director and CEO of Scotgold, said Cononish is expected to start producing 200kg of gold a year at the mine site when full-scale mining begins in 2011 – enough to produce 30,000 wedding rings a year – and another 500kg each year by sending rocks for processing elsewhere. Cononish will also produce roughly 17 tonnes of silver.

But Sangster said Cononish may only be the start of a major gold mining operation in the area. The company has a licence to explore a 2,200 sq km area of the southern Highlands for gold and it now believes there could be up to five times as much gold in the Tyndrum area.

The one-kilometre long shaft at Cononish has remained dormant until now because of the technical difficulty and cost of extracting the particles of gold from the quartz rock, which traps it. For every 10g of gold – roughly the weight of one wedding ring – about a tonne of rock will need to be crushed.

Most Tyndrum gold will be sold on the open market. The mine’s commercial value has been transformed by the sharp surge in its price during the recession.

Northern Ireland

The UK’s largest gold mine is in County Tyrone Northern Ireland, where 14 tonnes have been discovered in shallow deposits beneath a peat bog at Cavanacaw, in the same Dalradian rock strata that runs across the northern UK to the mine at Cononish in the Scottish Highlands.

In January 2007, after modern prospecting techniques discovered recoverable gold at Cavanacaw near Omagh in Co Tyrone, the first modern gold mine came into production. “This is Ireland’s first for two millennia”, announced Galantas, the Canadian company who owns and operates it.

It announced that Galantas expected to produce 30,000 ounces of gold a year – which alone would net close to 15 million pounds. Deposits were claimed to hold 14 tonnes of Irish gold. While most was to be sold as gold concentrate, a small part of what the company billed as “rare Irish gold” was to be used to make a range of branded 18-carat jewellery – Galantas Irish gold jewellery.

In addition to the Omagh gold mine, there are at least three other projects that are being explored.

Maurice Hall

Britannia gold bullion coin 1987

Britannia is an ancient term for Great Britain derived from Greek, and also a personification of the island and by the 1st century Britannia was known throughout the Roman world. She first appeared on coins issued under  Hadrian, where a female figure labeled BRITANNIA was depicted as a goddess. Britannia is portrayed as a beautiful young woman, wearing the helmet of a centurion, and wrapped in a white garment with her right breast exposed. She is usually shown seated on a rock, holding a spear, and with a spiked shield propped beside her. Sometimes she holds a standard and leans on the shield. On another range of coinage, she is seated on a globe above waves: Britain at the edge of the (known) world.

Britannia long survived the Roman withdrawal from Britain in the 5th century but the name fell into disuse until the 17^th Century when Britannia was used as an emblem of British imperial power and unity.

Britannia’s first appearance on British coinage was on the farthing in 1672, though earlier pattern versions had appeared in 1665, followed by the halfpenny later the same year; the model used, then and later, was Frances Teresa Stuart, the future Duchess of Richmond

Britannia £100 gold coin

In 1987, Britannia finally received the accolade of being promoted to a gold coin for the first time since Roman times and must rank amongst the worlds most beautiful bullion coins.
Britain decided to compete with the successful South African krugerrand bullion coin which had been minted by the million since introduced in 1967.
The gold Britannia was born and is produced in 22 carat gold, and is currently minted in 1/10 oz, 1/4 oz, 1/2 oz, 1 oz Weights. Various depictions of the goddess Britannia are on the coin, including the sitting Britannia, Britannia in helmet, Britannia with the lion, the Britannia and chariot and the standing Britannia.

The Britannia is classified as investment gold and thus free from VAT; but in addition as legal tender (like the Sovereign) is also free from Capital Gains Tax which is advantageous over other bullion coins and bullion bars as an investment instrument.

The Gold Britannia coin was originally alloyed with Copper, but from 1990 the decision was made to alloy with Silver.  This is why the earlier Gold Britannia’s have the deep Gold colour, as opposed to the lighter yellow gold colour of the Britannia since 1990.

Composition: 1987 – 1989: 22ct        (0.917 gold, alloyed with Copper)

1990 – present: 22ct    (0.917 gold, alloyed with Silver)

Designers:

Obverse – 3rd Portrait : Raphael David Maklouf, FRSA (1987 – 1997) / 4th Portrait :Ian Rank-Broadley, FRBS (1998 onwards)
Reverse -  Philip Nathan

Technical Specifications

Maurice Hall