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Canadian Silver Bullion Oz
big silver bullion Giveaway- contest ends September 20th 2011 (4 ounces)
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Frequently Asked Questions...
bullion silver coins?
assuming $1 USD = $1 CDN then When you buy a 1 oz Bullion silver coin with a $5 value in Canadian dollars how much is it actually worth at 17$/oz
Is it worth $17 only as the value of silver?
Is it worth $22 because of the $5 surplus on it
Is it worth what people are willing to pay for it and therefore buying them at $23-25 is worth it because as the price of silver goes up, there should be a surplus of value.
Thank you
Derek
Answer:
This coin simultaneously has two, entirely separate values:
* The value of 1 Troy ounce of .999 fine silver, plus or minus whatever premium or discount might apply when selling it to a particular buyer.
* $5 in Canadian currency, its legal tender value in Canada.
That also happens to be its floor value; it'll always be worth that, even if (hypothetically) the price of silver were to plummet to levels last seen a decade ago.
Those two values are *either/or*, not added together. So the coin is worth about US $17 (the approximate value of a Troy ounce of silver today) - plus any premiums or minus any discounts from spot silver you might encounter when selling it - *or* 5 Canadian Dollars as legal tender when spent in Canada (also coincidentally worth about $5 US at current exchange rates).
As another example, Canada issued a set of Olympic commemorative coins in 1973-76, for the Montreal Olympics of 1976. Those .925 Sterling Silver coins are legal tender at their face values of $5 and $10 Canadian, respectively, and contain about .72 and 1.44 Troy ounces of silver respectively. Those coins have the closest correspondence between face value and silver value - among high purity American and Canadian silver coins - that I know of. They also used to be available at huge discounts to spot on eBay, but no longer
.
Finally, as alcan52 astutely points out, you shouldn't have to pay $23-$25 (if that price doesn't include tax and/or shipping and insurance) for the Canadian $5 silver Maple Leaf bullion coins; they are widely available for prices closer to the silver spot price. In addition to Monex, I checked another dealer, Kitco, and their price was $19.14 on a day when the silver spot price was $16.89.



































































