Investors are looking for ways to hedge against inflation and economic uncertainty right now. Many are opting for the time-tested safety of gold. Already this year, we’ve seen historically high gold prices of over $2,000 an ounce.
But, if you think buying the 2019 Canadian gold orca coin is a safe bet, think again.
While it’s true these coins come from the reputable Royal Canadian Mint, the gold and silver dealers selling them are misleading investors into paying steep premiums. How high? Up to 50% over the value of the gold orca’s precious metal content.
And gold orcas aren’t the only exclusive Canadian bullion coins for which investors are overpaying.
Don’t make the same mistake. Get the details on gold and silver dealers’ sales tactics for these coins below.
2019 Canadian Gold Orca Coin Design
The 2019 Canadian orca gold coin weighs in at 1/4 ounce of .9999 fine gold. Dealers selling the coin on their websites have yet to release the coin’s face value.
To identify the gold orca coin, look for these specifications:
Gold Orca Coin’s Obverse Design
On the obverse, you’ll find the famous profile of Queen Elizabeth II. As a member of the Commonwealth, Canada has depicted the monarch on its coins throughout the history of the RCM. The fourth version of the head of Queen Elizabeth II was used for the 2019 gold orca, the absence of a crown on her neatly coifed hair recalling the coins minted during the era of King George VI, who preferred to be shown without a crown. Canadian artist Susanna Blunt is the designer.
Gold Orca Coin’s Reverse Design
You’ll find an orca—more commonly known as a “killer whale”—on the reverse of the coin. “CANADA 2019” is inscribed on the top of the coin’s reverse and “FINE GOLD ¼ OZ OR PUR” and “9999” on the bottom. Native to Canada’s crystal blue west coast, the orca is depicted in profile diving into the water, submerged except for its dorsal fin. Leaving waves in its wake, the orca is a dynamic and impressive presence.
Buyer Beware: Orca Coins Are Worth Only Their Weight in Gold
Like the Canadian Silver Orca Coins, the Royal Canadian Mint’s 2019 1/4 oz gold orca coin is available for sale through a select few precious metals dealers and may also appear on online resale sites.
Understand the sales tactics these dealers are using:
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While some rare coins justify steep premiums, these coins cannot be classified as rare. Dealers claiming “exclusive distribution rights” to these coins does not make them rare. Nor does the fact that the Royal Canadian Mint issued them in 2019 only. Gold orcas are bullion coins. They are worth only their weight in gold. No more.
Paying high premiums to acquire these coins does not support the growth goal of a self-directed IRA.
- Gold dealers are now selling the coin for around $786.55. That’s 1/4 an ounce of gold for $786.55. The spot price of gold on August 12, 2020 was $1,914.56 an ounce, which comes out to $478.64 for 1/4 an ounce. That’s a price markup of $307.91, or 49%.1
- Investors who wish to make informed decisions may not be able to find clear information, even from the Royal Canadian Mint, explaining what these coins are really worth.
- If you buy these coins, you likely won’t be able to sell them back to the dealer or on the market at a price anywhere near what you paid. From an investing standpoint, we do not recommend coins for a precious metal IRA if purchase prices would not likely be regained once an owner decides to sell a coin back to the market.
In short, investors are being misled into paying highly inflated premiums, above and beyond the spot price for the precious metal in the coins.
Gold Orcas Are Bullion Coins. Not Rare Coins
Some coins, specifically numismatic coins, are worth more than their precious metal content. The value of such coins lies in their history, their age, or their rarity.
A truly rare coin can have a value that far exceeds the worth of its precious metal content alone. This is why collectors willingly pay a premium for numismatic coins.
In contrast, the RCM 1/4 oz gold orca is a bullion coin. We emphasize that bullion coins are worth their weight in gold or silver.
We therefore make this point crystal clear: There are high-profile coin dealers insisting they have “exclusive” rights to sell an inventory of wildlife coins from the Royal Canadian Mint. People are confusing sales tactics with real value and paying high premiums to obtain these coins.
Should Gold Bullion Coins Be Part of Your Precious Metals IRA?
Minted in 2019, the gold orca coins meet the standard for IRA eligibility. They contain .9999 gold, as marked on the coins. This means these coins meet the government’s eligibility requirements for inclusion in a precious metals IRA.
That said, we are seeing a number of bullion coins—and the 2019 RCM gold orca is one example—that would appeal to newer buyers, and we must call for caution. The reason? We know the IRA investment value of coins and want our clients to know it as well.
Gold will always be an especially important investment. Purchasing gold bullion bars and coins is a valid method of diversifying the assets in your individual retirement account. Having gold in an investment portfolio can lower your risks for several reasons:
- Securities, mutual funds, and bonds can depreciate in value.
- Inflation can decrease the value of cash.
- Gold is inherently valuable, and gold prices keep rising. The price of gold is up more than 26% so far in 2020.
So, yes, invest in gold. But do so with the facts at hand. There’s a simple precaution you can take. Check with a professional precious metals advisor and get a second opinion before you buy coins for IRA investment reasons.
Get A Second Opinion
We Can Help You Mitigate Your Losses
If you have purchased these coins from a broker at an inflated premium, Scottsdale Bullion & Coin may be able to assist you. Our experts can assess the value of gold and silver coins before you buy them, and report back to you with vital information that supports an educated decision.
Please feel free to call us to discuss any questions you might have. Call 1-888-812-9892.