World Coins

Bank of Canada gold hoard buyers profit

The 1912 Canadian gold $10 coin was the first to sell out of the three dates in the Bank of Canada hoard. 1913 and 1914 $10 coins are still available from the RCM in “Hand-Selected” and “Premium Hand-Selected” quality categories.

Images courtesy of Royal Canadian Mint.

While our market analysis typically focuses on U.S. coins, it’s been hard to avoid noticing advertisements from the Royal Canadian Mint offering 1912, 1913 and 1914 $5 and $10 coins from the Bank of Canada hoard.

The Bank of Canada had held approximately 245,000 King George V gold $5 and $10 coins dated 1912, 1913 or 1914 in the Exchange Fund Account controlled by the minister of Finance. Of those, 30,000 were selected for sale to collectors in two groups: “Premium Hand-Selected” and “Hand-Selected.”

The RCM announced on Nov. 28, 2012, that it would offer the coins for sale directly to collectors. These pieces represent Canada’s first gold coins carrying a Canadian symbol. Their production was cut short in 1914, just two years after the coins were introduced.

Canada’s sale is reminiscent of the General Services Administration’s 1970s offerings of primarily Morgan silver dollars from Treasury Department vaults. These dollars have since enjoyed a robust market with collectors.

In Canada’s sale, the gold $5 coins of all three years have long sold out, offered at $500 Canadian for “Hand-Selected” and $875 for “Premium Hand-Selected” coins. As of July 26, just four ordering options remain: 1913 and 1914 gold $10 coins priced at $1,000 for “Hand-Selected” and $1,750 for “Premium Hand-Selected.”

Despite the price of gold falling substantially, from the $1,700 U.S. an ounce level in early December 2012 to $1,320 on July 26, the RCM has not changed its prices.

These coins have enjoyed a solid resale market, with major marketers continuing to sell examples at premiums over the RCM’s offering price. Collectors report that “Hand-Selected” pieces are grading Mint State 62+ to MS-63+ while the “Premium” pieces are grading MS-63+ to MS-64, with the very occasional MS-65 piece.

Mint State 63 1913 $10 coins from the hoard continue to sell in online auctions at $1,100 U.S. and through dealers at the $1,200 level. MS-62+ examples are selling at the $975 level online, or the U.S. dollar equivalent of the RCM’s $1,000 Canadian issue price.

Mint State 64 examples are selling at auction at the $1,550 U.S. level and through dealers at the $1,750 level. It seems that the additional quantity of coins in the marketplace has not overwhelmed the market. The future looks bright for these historic coins. ¦

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