The E-Sylum:  Volume 10, Number 31, August 5, 2007, Article 15

MONSTER CANADIAN GOLD COIN TO BE AUCTIONED

Regarding comments by myself and Dick Johnson on Teletrade's
auction of the monster Canadian gold coin, Ian Russell of
Teletrade, Inc. writes:

"I read your e-mail where it mentioned you could buy the $1
million Canadian Coin direct from the Royal Canadian Mint at
$1 million (Canadian)."

Please note, that the gold melt value is in excess of $2 million
(U.S.) - of course, the Royal Canadian Mint would not sell for
$1 million or everyone (with $1 million) would be doubling their
money and just buying to melt down."

[It is Dick Johnson's submission Ian is referring to.  He wrote
"... you can buy this from the Canadian Mint direct and pay
$970,000 U.S. instead of the bid price plus 12 percent."  Of
course, the $970,000 is simply the $1 million Canadian dollar
face amount of the coin (in dollars), not the actual bullion
value or selling price.  I edited that item too quickly and
let the figure slip in accidentally (sorry!).

But the point of Dick's post is not the value of the coin but
the amount of additional sales commission a buyer would pay
beyond the price of the coin direct from the Royal Canadian
Mint.  It's doesn't make much sense economically to pay an
additional fee to a middleman when the same item is available
directly at a lower cost.  But as Bill Burd points out, the
offering does have some publicity value to the sellers.  Thanks
to the others who pointed out the error, including new
subscriber Jeff Kelley. -Editor]

John Regitko writes: "If Dick Johnson was selling these for
$970,000 U.S., I would buy as many as he was willing to sell
me and pay him the additional 12%, because I would have no
problem convincing the bank to loan me an unlimited amount
of money.

"The original selling price was $2.6 million but, because
of the cost of bullion gold, will probably now sell for
closer to $3 million. Like with any non-circulating precious
metal coins, the mints place a face value on them but sell
them for quite a bit more.

Bill Burd writes: "The Canadian gold coin is 100 kilograms of
pure gold which is 3215 troy ounces.  At $663.00 US per oz the
coin contains $2,131,545 worth of gold.  12 percent would be
about $250,000.  The Canadian Mint would charge a percent
over to make the coin but it would not be that high of a
premium.  Teletrade and A-Mark will get a lot of exposure
on this sale."

 MONSTER CANADIAN GOLD COIN TO BE AUCTIONED
 esylum_v10n30a32.html

  Wayne Homren, Editor

	coinbooks.org Web

The Numismatic Bibliomania Society is a non-profit organization 
promoting numismatic literature. See our web site at coinbooks.org.

To submit items for publication in The E-Sylum, write to the Editor 
at this address: whomren@coinlibrary.com

To subscribe go to: https://my.binhost.com/lists/listinfo/esylum