In the world of coin collecting, the word “rare” suggests an item is numismatic, meaning it carries greater value than its weight in gold or silver; however, buyers should beware of the adjective “exclusive.” In recent years, several coin brokers have advertised exclusive gold and silver coins from the Royal Canadian Mint, selling these bullion coins at a high premium over their spot price. Once purchased, customers are shocked to find out that these high premium coins are only worth their metal content. Many buyers of these coins are losing thousands of dollars overnight. Don’t become one of them. Before you purchase any of these coins, learn what you need to watch out for.
Don’t Pay a High Premium for These Canadian Coins
Like bullion coins, the coins in the chart below are only worth their metal content, but some major coin companies are claiming exclusive selling rights to them and charging high premiums. Do not fall for these sales tactics! Know that these are just bullion coins, and they should not cost more than any other Canadian Maple Leaf coin.
Canadian Wildlife Coins
|Coin Name||Metal Content||Size|
|2013 Canadian Silver Polar Bear||.9999 Silver||1.5 OZ|
|2015 Canadian Silver Polar Bear & Cub||.9999 Silver||1.5 OZ|
|2016 Canadian Silver Snow Falcon||.9999 Silver||1.5 OZ|
|2014 Canadian Silver Arctic Fox||.9999 Silver||1.5 OZ|
|2017 Canadian Silver Grizzly Bear||.9999 Silver||1.5 OZ|
|2015, 2016, 2017 Canadian Silver Buffalo||.9999 Silver||1.25 OZ|
|2016 Canadian Silver Gyrfalcon||.9999 Silver||1.5 OZ|
|2017 Canadian Silver Twin Maples||.9999 Silver||2 OZ|
|2012 Canadian Silver War of 1812||.9999 Silver||3/4 OZ|
|2016 & 2017 Canadian Silver Howling Wolves||.9999 Silver||3/4 OZ|
|2017 Canadian Silver Big Horn Sheep||.9999 Silver||3/4 OZ|
|2013 Canadian Silver Pronghorn Antelope||.9999 Silver||1 OZ|
|2013 Canadian Silver Wood Bison||.9999 Silver||1 OZ|
|2014 Canadian Silver Peregrine Falcon||.9999 Silver||1 OZ|
|2015 Canadian Silver Red-Tailed Hawk||.9999 Silver||1 OZ|
|2016 Canadian Silver Cougar||.9999 Silver||1 OZ|
|2014 Canadian Silver Bald Eagle||.9999 Silver||1 OZ|
|2014 Canadian Gold Arctic Fox||.9999 Gold||1/4 OZ|
|2013 Canadian Gold Polar Bear||.9999 Gold||1/4 OZ|
|2015 Canadian Gold Polar Bear and Cub||.9999 Gold||1/4 OZ|
|2016 Canadian Gold Snow Falcon||.9999 Gold||1/4 OZ|
|2017 Canadian Gold Grizzly Bear||.9999 Gold||1/3 OZ|
|2016 Canadian Gold Gyrfalcon||.9999 Gold||1/4 OZ|
|2017 & 2018 Canadian Gold Twin Maples||.9999 Gold||1/4 OZ|
|2012 Canadian Gold War of 1812||.9999 Gold||1/4 OZ|
|2017 Canadian Gold Megaleaf||.9999 Gold||1.5 OZ|
|2014 Canadian Gold Bald Eagle||.9999 Gold||1/10 OZ|
|2017 Canadian Gold Peregrine Falcon||.9999 Gold||5 OZ|
|2017 Canadian Gold Red-Tailed Hawk||.9999 Gold||5 OZ|
Research Before Regret: Broker Exclusive Coin Warning Signs
Coin brokers are employing similar tactics to sell these exclusive coins at high premiums. Use the list below to determine if a broker is overcharging for a coin that you’re considering purchasing.
The coin broker claims the Royal Canadian Mint has produced the coins exclusively for them. Many brokers may even publish online press releases announcing they will be the exclusive providers of the coin. While this may be true, this does not necessarily make these rare coins.Note that the coin brokers, NOT the Royal Canadian Mint, are misleading customers about these coin types.
Brokers often sell the coins well over the spot price for their precious metal content. When customers want to sell the coins, they discover they’re only worth their weight in gold or silver.
It can be difficult for customers to research the coins because information about them can usually only be found on the website of the broker who is exclusively offering them. In many cases, customers can’t find the coins on the Royal Canadian Mint’s website.
While this isn’t always the case, a common trend for these coins is producing them in odd weights, usually 1-½ ounces. This can make it difficult to draw quick comparisons to the spot price for the metal content.
Brokers often market these coins among their offerings that are eligible for a precious metals IRA. Many of the coins can be included in such a retirement account. They are IRA eligible, but the price of these coins should still be set according to their bullion content.
No Buyback Policy
Most brokers don’t advertise their buyback policy or price for these exclusive coins. In fact, if you call and ask them what they would buy them back for on the same day of purchasing, it can be difficult to get a straight answer.
Use These Guidelines When Purchasing Coins
How can you avoid overpaying for bullion coins? Using the following guidelines can help.
1. Coin Company Reputation
Whether you’ve worked with the company in the past or have researched their reputation, it’s important to know you’re doing business with a fair and honest seller. The U.S. Mint has a list of brokers that the Better Business Bureau represents, and you can also read consumer reviews.
Most brokers claim the gold and silver coins they sell are worth more than their precious metal content. It’s common for them to charge 40% to 50% more than the value of the coin. Before purchasing coins, check gold or silver spot price charts to find the spot prices. This can help you to avoid paying an excessive premium for these bullion coins.
3. Buyback Policy
Offering a buyback policy is a sign that the broker is not selling counterfeit products. Check to see if the broker charges a premium to purchase back coins or limits the number they’ll accept. Also, see how long they plan to take to repay you for the coins. Once you’re happy with a broker’s buyback policy, have them send it to you in writing.
Reduce Your Losses on Broker Exclusive Coins
If you’ve purchased any of the broker exclusive Canadian coins mentioned in this article contact the advisors at Scottsdale Bullion & Coin. Our advisors are well aware of the problem plaguing the precious metals investing community and have developed a strategy to help you minimize your losses on such purchases.
Need a Second Opinion?
Are you considering buying precious metals coins but worried about being overcharged for or misled about the quality of the products? You’re not alone.
As the broker exclusive Canadian coin issue illustrates, there are dishonest coin brokers out there and collectors and investors alike have to be careful. Getting a second opinion from a professional coin advisor is one precaution you can now take before making a purchase. Our advisors are happy to evaluate any coins you’re considering and will help educate you so that you’ll make an informed decision for your financial future.