I have bought silver in the past, but never gold. My sudden interest in gold began a few weeks ago when the price nearly dropped below $1,200 an ounce, and I would have purchased a 1 ounce coin if it had.
I looked on Provident Metals at the different gold coins and I was torn between the American Gold Eagle and the Canadian Gold Maple Leaf. I noticed that the Eagle cost $20 more than the Maple Leaf and I am having a hard time figuring out why.
If I remember correctly, a gold eagle is only .9167 gold while the gold maple leaf is .9999. Both coins are backed by their respected governments so it doesn't make a lot of sense to me why I would pay so much more for an eagle.
Which coin makes more sense to buy? I am thinking the maple leaf because it actually has more gold in it than the eagle. The different forums I have read are a wash on this subject.
There seems to be a premium for it being a US government coin. Many investors prefer the maples which I do as well! They both have 1 ounce of gold in them though, the US eagle just has some other metals in it making it less likely to get bent thanks to the silver and copper in it.
If you can accept this theory, it is for the same reason the US Dollar is the reserve currency of the world. The US Mint commands a premium because, unlike smaller countries, weaker (militarily) countries, countries that have undergone inflation and revolution and loss of sovereignty, the USA is known for being a leader. Leaders (kings) make standards. Standards are accepted by others, even others in other countries. Who would dare provoke the wrath of the USA by counterfeiting their bullion?
Consider that during Colonial times, it was the Spanish doubloon (pieces of eight) that was the standard. Then the British pound sterling (silver), as "the sun never set on the Empire". Now it is the USD. In the next 100 years, could it be a crypto-currency? Or back to gold and silver?
(And yes, some very good counterfeits of gold and silver bullion US coins have been coming out of China.)
That makes sense. This is the main reason why I would hesitate buying the maple leaf over the eagle. But damn, there is actually more gold in the maple leaf so it's hard to make a choice between the two.
you're wrong. both contain the same amount of gold.
Yep. You are correct. My mistake.
Just buy both! Problem solved
Congratulations @hoss403! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOPPersonally, I like the maple over the golden eagle, but I do love both designs (less-so the Queen on the front side of the maple though). I just bought a half oz. maple when the price dropped, it was like $610 or something like that, good deal!