Redeemabi;ity of the $5.00 Maple Leaf

Condor, there was a period between August 2000 to August 2003 when silver stayed below $5.00 (U.S.Dollars) almost the entire 3 years. When you figure the Canadian $ or any other currency, there would most certainly be more recent times when the NCLT`s containing silver had higher face values than their melt values.

 

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Here in New Zealand,people prefer both the silver &
gold Maple Leaves,as there is no G.S.T. on pure gold & silver coins.There is G.S.T. of 12-1/2% on the Krugerrand though,as the Krugerrand is of 22 Carat gold (the same fineness as the Sovereign),& despite the fact that the Krugerrand says '1 OZ FINE GOLD FYN GOUD',it actually weighs more than an ounce.It is because of the G.S.T. on the Krugerrand,which is why it is not popular.The other
reason is because of South Africa's association with apartheid.

G.S.T. - Goods & Services Tax (a.k.a. Government Swindle Tax,or in Canada,Gouge & Screw Tax).

 

Aidan,

I have a few of those taxes here. We get charged about $1.00 a gallon for taxes and then we get to pay sales tax on the tax. catman

 

True silver was below $5 US, but to be below the $5 Can face value of the Maple Leaf silver would have to be below $4 US and that hasn't happened since 1993. Now for the 1976 Olympic coins, Yes the face value has been above the melt value more recently than that.

 

Remember Condor,

In the early 70's the Canadian dollar was on par with the U.S. Dollar for a while. The rates change all the time. You are going to have to trust us on this issue. The price of silver did fall below the face value of the Maple Leaf.

catman

 

I can finally now share the results of my trip to the bank and my question to the mint.
The reaction at the bank(its a small city and I'm pretty well known there) was that they could not exchange the coin for face value.
The mint says that the SML is a coin and is legal tender. That fact, however, does not legally obligate anyone to accept the coin as payment.They have developed a numismatic coin exchange program whereby individuals are able to go to authorized participating dealers and distributors to obtain face value of the numismatic coins they hold.The dealers can then avail themselves of an exchange arrangement with the mint for the face value equivalent of these coins in new numismatic products.

 

Well,Bill,the Aussie gold Nugget coins are regarded as being legal tender,but like the gold & silver Maple
Leaves,you cannot actually redeem them at face like you can with the British 5 Pounds coins.Maple Leaves should be regarded as being like the Krugerrand,except the Krugerrand is 22 Carat gold.

 

There are also gold MLs with a face value for the one ounce at $50.00. I don't suppose anyone would refuse that.

 

Thanks for the followup report, Bromac. Pretty interesting results.

While I was away at a show a few weeks ago a customer came into the shop saying a local bank had sent him to us...he had a $50 gold usa coin that they refused to accept. My employees paid him whatever the price was at the time for a Gold Am. Eagle...about $425 at the time, I think...boy was he happy! Things like that happen every few years.
Nick

 

Kinda tells you something about our currency as well doesn't it. We have legal tender but the government nor business is required to accept it. Maybe I should be keeping commodies. At least they have real value.

catman

 

Maybe some of these coins should not be labeled legal tender if people can refuse them as payment.

David

 

If that's the only way you can pay somebody, I wouldn't think it would be your fault if someone chose to decline that payment.

David

 

I'm not sure I understand what you mean. To my understanding, the c/n British £5 coins are very hard to spend.

 

Adian,

What is being said is that no money issued by the government has to be accepted by anyone. Its done only because people trust the government that's issuing it.

Doug,

Need you to explain yout statement. If the government that issued the money has to redeem it it. What are they going to give you except more f the same stuff.?

catman

 

Another thing is that if places don't accept the maple leaf, they mint should NOT put a face value on the coin.

David

 

Merchants anywhere can refuse to accept your u.s. currency. Usually the reason is that they suspect it's counterfeit, granted. Some businesses/organizations don't want to deal in cash. But technically the only people who HAVE to redeem cash is the government...since they are the ones that issued it.
Quirky but true.
Nick

 

Problem is they do and there's not much anyone can do about it.

catman

 

I'm not even sure the US Government HAS to accept it. Just as there are no laws requiring others to accept it, there are no laws requiring the Government to accept it either.

 

Well,one can go into the post office for example & spend the British 5 Pounds coin.Well,I am sure that you can also spend the British 2 Pounds coins that were issued between 1986 & 1996 as well.