Canada Maple Junk

[XizangMember]

I’m seeing some places are getting a higher price for their 1-ounce Silver Maples than for their US 1-ounce Silver Eagles.  I know the Silver Maples are supposedly finer silver content – 9999 vs. 999 for the Eagles.   But with the recent disclosure that even though the Silver Maples are stamped as $5 Legal Tender, Canada’s own banks and mint don’t recognize the Maples as real money.

So here’s the point:  Aren’t US Silver Eagle Dollars a better vehicle for moving small amounts of wealth across borders – as so far, they truly are Legal Tender.  And they’re only $1 each face value.   Which means if you’re taking 100 ounces of Silver Eagles across a border, you’re technically only taking $100 dollars in silver dollars with you.   As opposed to 100 Silver Maples theoretically being worth $500 face value.

Why would anyone mess with Silver Maples then?

[silverstaxMember]

Where the heck did you hear that Canada’s mint and banks do not recognize Maples are real money?! That’s absolutely ludicrous – Canadian Maples are legal tender with a face value of $5 stamped right on the coin. Obviously nobody would ever want to exchange them for face value, but if they did they are just as valid as a Canadian $5 bill – the mint and banks cannot not recognize them as legal tender.

I’ll take Maples over Eagles any day simply because they have a higher purity. If you went to the gas station and there were 2 gas pumps and one said “99.9% gasoline” and the other said “99.99% gasoline” and they were the same price, which would you choose?

[jj83Member]

Here is the Toronto Star story.

http://www.thestar.com/business/article/1221621–coin-collector-learns-the-difference-between-legal-tender-and-spending-money-the-hard-way

This guy is nuts though.  Keep in mind, the coins that are referred to are $20 Face Value for $20 each, not Canadian 1oz Maples.  The mentioned coins contain approximately 1/3rd of an ounce of silver in each.  The deal is a limit of 3 per household, the guy somehow picked up 30 of them.

The issue is that not everywhere will accept these coins and tellers at banks are not usually presented with the coins, so they do not know.  It is also a matter of collectible coins/numismatics versus investment bullion.  There is a big difference since numismatics are more for hobbies/art, so you automatically get a huge premium on the silver spot.  Investment bullion of course is closer to spot.

One argument I’ve heard from coin shops is that the face value helps in some scenarios, ie is the price of the metal plummets to $0 (snicker), because the face value will show the coin has actual value.

Anyways, I like them and have subscribed to the http://www.mint.ca to send me whenever a new issue comes out.  This is only as personal collector value though as the stuff from the Canadian Mint is just way over priced.

[XizangMember]

Thanks for calling me out on that, SilverStax.   Not to be overly redundant, read this, then see if you still want to call me out on it…

http://www.thestar.com/business/article/1221621–coin-collector-learns-the-difference-between-legal-tender-and-spending-money-the-hard-way

[silverstaxMember]

Ah, I see – thanks for the links. Ok, so this is really a different animal as it has nothing to do with silver maples – the guy was trying to cash in a commemorative coin, not Maples. They key part of the article:

“He explains all coins produced by the mint are legal tender – meaning
they can be exchanged for goods or services at face value – but only
circulating legal tender can be readily spent and traded at business and
banks.

Non-circulating legal tender refers
to items like Fokine’s silver coins and designated collectibles. Reeves
says business can accept the money at face value if they choose, but
they’re also free to reject it.”

So if the guy had Maples and went to a bank that deals with bullion such as Scotiabank, he surely would not have had the same problems that he did walking into some local bank branch with a commemorative silver coin.

Also, as the article says it really up to the merchant – you could walk into a store and try to pay for something with bags of legal tender change and they can tell you to get lost if they want.

[XizangMember]

I was taught in a legal contracts class, taught by a leading attorney in the United States, that under contracts laws in the USA, once a seller asks a price, and a buyer offers to pay that price, it constitutes a contract.  Then, if the buyer offers to pay in legal tender, he has effectively offered payment per contract.  If the seller declines to accept the legal tender payment, he does so at his own peril, as he is legally waiving payment.  The buyer then is entitled to the goods or services as paid at that point.

So I would think that if you’re going to be declining any form of legal tender payment (such as pennies or dimes) you should do so back in the negotiations stage.

[jj83Member]

The Silver Maples have a legal tender face value of $5, but they are Non-Circulating Legal Tender.

The rejections stem from the fact that the Front Line people had no clue what to do with those commemorative legal tender coins.  Really, if someone came at me with some special coin or dollar bill, I would think it is a scam or some messed up counterfeit.  Or – I just wouldn’t have known it is possible to transact with it.

It is conceivable the tellers at a Bullion Bank wouldn’t know either, they’d probably think you were there to sell the coins, not cash in at face value.  I guess if I ever have time to go out to a ScotiaBank or what not I could go and try, but then also – would I want to waste a coin like that? heh.

[4 ozMember]

Like the Maples….Cougs  and Moose too…   well did, lost ‘em all in that boating accident…

[Justin CaseMember]

CDN banks will not even do a currency exchange if you don’t have an account. No account no service.

[efaithMember]

Dear Sir/Mada,
(egobia.benjamin@yahoo.com)

This is Chief  Benjamin Egobia, from Effiduase Village in Obuasi.

Actually, I am traditional Chief here in Ghana governing the Village of
Obuasi where I have many hectare of land of Gold, inherited by my
grandfathers. we have 350kg down

We have managed to dig out about this 350 KG which I wanted to use your
assistance to sell in your country. I will advise you to look for more
buyer because we are trying to expand our mining strategy, that means we are
trying to purchase a mining equipment which will be more easier after
selling this 350 KG We have been selling to people who sell out to
foreigners but I have discover that they are cheating us, that was why I
decided to look for Direct buyers or foreign partner who will assist me
in the selling of the product so that we can go into a long business
relationship.

I have made the entire necessary inquiry for the shipment through a legal
procedure here in Ghana, I wait to hear from you so that I can send you
F CO which will enable us to move ahead. My regards to your family.

Looking Forward to do Business With You as we wait to read your urgent reply
via my private email address at(egobia.benjamin@yahoo.com)
Best Regard
Chief Benjamin & Co.Local Gold Miners Ghana

[Author]

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