It's not pocket change - Canadian mint introduces world's first 100-kilogram gold coin
Canadian Press
Thursday, May 03, 2007
CREDIT:
The Royal Canadian Mints' world's first 100-kg 99999 pure gold bullion coin with a $1 million face value sits amongst much smaller 1oz gold coins at its unveiling, in Ottawa Thursday. (CP/Tom Hanson)
OTTAWA (CP) - If a monster gold coin is on your wish list, now's the time to make your move, but it will cost you a hefty $3 million.
The Royal Canadian Mint introduced the world's first 100-kilogram gold coin Thursday. It will make only 10 and it sold three within hours of introducing the coin.
Listed as 99.999 per cent pure gold bullion, the big coin has the purest gold of any coin. It has the Queen on one side and three maple leafs on the other, and is mainly a promotional product to give the mint a higher international profile.
"We wanted to raise the bar so that we could say the government of Canada or the Royal Canadian Mint produced the purest gold coins in the world," said David Madge, the mint's director of bullion and refinery services.
The coin, which takes about six weeks to make, has a face value of $1 million, but it sells for about $3 million, depending on the market value of gold. The tire-sized coin is a little over 50 centimetres in diameter and about three centimetres thick.
The coins will be made to order so there'll be no inventory to carry or to melt down if there's unsold stock.
But it's not the individual buyers the mint had in mind when it issued the new coin.
"They will make money striking this coin," said Bret Evans, editor of Canadian Coin News in St. Catharines, Ont.
" But they're not doing this because there is huge demand for a 100-kilo gold coins.
"They're doing it because it gives them some bragging rights in having the largest purest gold coin in the world," Evans said.
"They'll kick the Austrians out of the Guinness World Book of Records."
Until Thursday, Austria held the record with its 100,000-euro gold coin, worth about C$153,000. The Austrian coin is 37 centimetres across and weighs 31 kilograms.
Ordinary people are not expected to notice, or even care about the new coin.
It's in the precious metals market that the coin is expected to make quite a big impact.
Evans said the mint has recently lost some market share as mints in Australia, Austria, China and the United States push their own high-quality gold coins.
"They're being challenged in the level of purity," said Evans.
"That's really where the market is built around - the perception of purity, the perception of market leadership."
And purity is what the mint was after with the latest project.
"Not only is it the largest gold coin in the world, it's also made with five nines gold," said Madge who's been involved in the project since it began two years ago.
"That means it's 99.999 per cent pure and this is something we're very proud of."
The four-nine coins (99.99 per cent pure gold coins) were also first introduced by Canada in 1982. The Maple Leaf coin set a new standard at the time. Other countries, including Austria, China, Australia, and last year the United States, followed suit.
The 100-kilogram coin was conceived as a showpiece to promote the mint's new line of 99.999 per cent pure one ounce Gold Maple Leaf bullion coins.
Since 1979, the mint has pioneered high-purity Maple Leaf bullion coins, selling about 20 million ounces of them around the world.
But what exactly can you do with a 100-kilogram pure gold coin?
Evans said it appeals more to bullion dealers who will use it as a promotional tool.
A Japanese dealer, he said, puts one of the Austrian coins in public venues to draw people's attention.
"And while they're looking at that they are being exposed to the idea of buying one ounce or half-ounce gold coins."
Canadian Press
Thursday, May 03, 2007
CREDIT:
The Royal Canadian Mints' world's first 100-kg 99999 pure gold bullion coin with a $1 million face value sits amongst much smaller 1oz gold coins at its unveiling, in Ottawa Thursday. (CP/Tom Hanson)
OTTAWA (CP) - If a monster gold coin is on your wish list, now's the time to make your move, but it will cost you a hefty $3 million.
The Royal Canadian Mint introduced the world's first 100-kilogram gold coin Thursday. It will make only 10 and it sold three within hours of introducing the coin.
Listed as 99.999 per cent pure gold bullion, the big coin has the purest gold of any coin. It has the Queen on one side and three maple leafs on the other, and is mainly a promotional product to give the mint a higher international profile.
"We wanted to raise the bar so that we could say the government of Canada or the Royal Canadian Mint produced the purest gold coins in the world," said David Madge, the mint's director of bullion and refinery services.
The coin, which takes about six weeks to make, has a face value of $1 million, but it sells for about $3 million, depending on the market value of gold. The tire-sized coin is a little over 50 centimetres in diameter and about three centimetres thick.
The coins will be made to order so there'll be no inventory to carry or to melt down if there's unsold stock.
But it's not the individual buyers the mint had in mind when it issued the new coin.
"They will make money striking this coin," said Bret Evans, editor of Canadian Coin News in St. Catharines, Ont.
" But they're not doing this because there is huge demand for a 100-kilo gold coins.
"They're doing it because it gives them some bragging rights in having the largest purest gold coin in the world," Evans said.
"They'll kick the Austrians out of the Guinness World Book of Records."
Until Thursday, Austria held the record with its 100,000-euro gold coin, worth about C$153,000. The Austrian coin is 37 centimetres across and weighs 31 kilograms.
Ordinary people are not expected to notice, or even care about the new coin.
It's in the precious metals market that the coin is expected to make quite a big impact.
Evans said the mint has recently lost some market share as mints in Australia, Austria, China and the United States push their own high-quality gold coins.
"They're being challenged in the level of purity," said Evans.
"That's really where the market is built around - the perception of purity, the perception of market leadership."
And purity is what the mint was after with the latest project.
"Not only is it the largest gold coin in the world, it's also made with five nines gold," said Madge who's been involved in the project since it began two years ago.
"That means it's 99.999 per cent pure and this is something we're very proud of."
The four-nine coins (99.99 per cent pure gold coins) were also first introduced by Canada in 1982. The Maple Leaf coin set a new standard at the time. Other countries, including Austria, China, Australia, and last year the United States, followed suit.
The 100-kilogram coin was conceived as a showpiece to promote the mint's new line of 99.999 per cent pure one ounce Gold Maple Leaf bullion coins.
Since 1979, the mint has pioneered high-purity Maple Leaf bullion coins, selling about 20 million ounces of them around the world.
But what exactly can you do with a 100-kilogram pure gold coin?
Evans said it appeals more to bullion dealers who will use it as a promotional tool.
A Japanese dealer, he said, puts one of the Austrian coins in public venues to draw people's attention.
"And while they're looking at that they are being exposed to the idea of buying one ounce or half-ounce gold coins."
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