Canadian Gold Coins Value – What Is Affecting It?

Canadian Gold Coins Value

Just like the value of any other gold coins, Canadian gold coins value is affected by a multitude of factors. Understanding what goes into the price for Canadian gold coins for sale will help you gauge whether a certain price range is worth considering.

In order to determine Canadian gold coins value, one needs to identify which category a certain coin belongs to. Generally, there are two major categories of gold coins on the market, bullion coins and collectibles (numismatic coins).

Canadian gold bullion is represented by globally known and recognized Canadian Gold Maple Leaf, the official bullion coin of Canada. One of the first bullion coins in the world to be crafted from the finest 24 karat gold at the Royal Canadian Mint. The obverse features the portrait of English Queen Elizabeth II and the reverse side bears the National symbol of Canada, the Canadian Maple Leaf. Gold content value of this bullion coin is directly correlated with a spot price of gold. So it’s fair to say that Gold Maple Leaf price tracks the daily price of gold. The general rule is the higher the inflation rates are the higher the spot price of gold is going to be. Therefore purchasing Gold Maple leaf coins creates an excellent recession proof investment.

It is important to note that the actual price of Gold Maple Leaf coins also includes a small fraction of manufacturing and distribution fees along with dealer premiums and mark ups. Canadian gold coins value is also affected by investor interest. If the interest is high, the premium charges increase and vice versa.

Canadian gold coins value for numismatics is affected by a completely different set of factors that go far beyond the physical gold content. Value calculations are far more complex and require a trained eye to say the least and thorough knowledge of numismatics. Among interesting modern Canadian numismatic coins that spark collectors’ demand are proof editions of Gold Maple Leaf, Olympic coins, Chinese Lunar New Year series and various commemorative coins.

For this category of coins, Canadian gold coins value is determined by coins’ grade or the condition they are in. Coin grading system recognizes many different variations of coins ranging from poor circulated, uncirculated and proof grades. The higher the grade of the gold coin the higher the Gold Maple leaf price, for example, is going to be.

But a coin’s grade is not the only factor that affects the final price of it. Rarity of collectible gold coins is another top determining factor that is directly correlated with gold coins scarcity. The fewer the coins are on the market the higher the value for them. This means that limited editions proof or commemorative coins’ prices are going to be much higher even of those coins that are much older but exist in larger quantities.

Collectible Canadian gold coins value is also greatly affected by collectors’ demand. The higher the demand, the more money you should expect to pay for your Canadian coins of gold. At times coin demand is prone to fluctuations and changes in investor preferences. This is why some leading gold investors stay away from rare historical coins and buy exclusively bullion coins to maximize value to cost ratio.

Now that you know what affects Canadian gold coins value, you can easily determine whether you should buy or simply stay away from certain coins. Generally speaking investors buy bullion coins for their melt value and to track the daily spot price of gold, while collectors are willing to pay way over this “melt value” for the story behind the coin and for its rarity factors.