Buyer Beware: The Shocking Truth about Exclusive Canadian Bullion Coins

In the world of coin collecting, the word “rare” suggests an item is numismatic, meaning it carries greater value than its weight in gold or silver; however, buyers should beware of the adjective “exclusive.” In recent years, several coin brokers have advertised exclusive gold and silver coins from the Royal Canadian Mint, selling these bullion coins at a high premium over their spot price. Once purchased, customers are shocked to find out that these high premium coins are only worth their metal content. Many buyers of these coins are losing thousands of dollars overnight. Don’t become one of them. Before you purchase any of these coins, learn what you need to watch out for.

Don’t Pay a High Premium for These Canadian Coins

Like bullion coins, the coins in the chart below are only worth their metal content, but some major coin companies are claiming exclusive selling rights to them and charging high premiums. Do not fall for these sales tactics! Know that these are just bullion coins, and they should not cost more than any other Canadian Maple Leaf coin.

Research Before Regret: Broker Exclusive Coin Warning Signs

Coin brokers are employing similar tactics to sell these exclusive coins at high premiums. Use the list below to determine if a broker is overcharging for a coin that you’re considering purchasing.

• Exclusivity

  The coin broker claims the Royal Canadian Mint has produced the coins exclusively for them. Many brokers may even publish online press releases announcing they will be the exclusive providers of the coin. While this may be true, this does not necessarily make these rare coins.

  Note that the coin brokers, NOT the Royal Canadian Mint, are misleading customers about these coin types.

• High Premium

  Brokers often sell the coins well over the spot price for their precious metal content. When customers want to sell the coins, they discover they’re only worth their weight in gold or silver.

• Obscurity

  It can be difficult for customers to research the coins because information about them can usually only be found on the website of the broker who is exclusively offering them. In many cases, customers can’t find the coins on the Royal Canadian Mint’s website.

• Odd Weights

  While this isn’t always the case, a common trend for these coins is producing them in odd weights, usually 1-½ ounces. This can make it difficult to draw quick comparisons to the spot price for the metal content.

• IRA Eligible

  Brokers often market these coins among their offerings that are eligible for a precious metals IRA. Many of the coins can be included in such a retirement account. They are IRA eligible, but the price of these coins should still be set according to their bullion content.

• No Buyback Policy

  Most brokers don’t advertise their buyback policy or price for these exclusive coins. In fact, if you call and ask them what they would buy them back for on the same day of purchasing, it can be difficult to get a straight answer.

Use These Guidelines When Purchasing Coins

How can you avoid overpaying for bullion coins? Using the following guidelines can help.

1. 1. Coin Company Reputation

   Whether you’ve worked with the company in the past or have researched their reputation, it’s important to know you’re doing business with a fair and honest seller. The U.S. Mint has a list of brokers that the Better Business Bureau represents, and you can also read consumer reviews.

2. 2. Price

   Most brokers claim the gold and silver coins they sell are worth more than their precious metal content. It’s common for them to charge 40% to 50% more than the value of the coin. Before purchasing coins, check gold or silver spot price charts to find the spot prices. This can help you to avoid paying an excessive premium for these bullion coins.

3. 3. Buyback Policy

   Offering a buyback policy is a sign that the broker is not selling counterfeit products. Check to see if the broker charges a premium to purchase back coins or limits the number they’ll accept. Also, see how long they plan to take to repay you for the coins. Once you’re happy with a broker’s buyback policy, have them send it to you in writing.

Reduce Your Losses on Broker Exclusive Coins

If you’ve purchased any of the broker exclusive Canadian coins mentioned in this article contact the advisors at Scottsdale Bullion & Coin. Our advisors are well aware of the problem plaguing the precious metals investing community and have developed a strategy to help you minimize your losses on such purchases.

Need a Second Opinion?

Are you considering buying precious metals coins but worried about being overcharged for or misled about the quality of the products? You’re not alone.

As the broker exclusive Canadian coin issue illustrates, there are dishonest coin brokers out there and collectors and investors alike have to be careful. Getting a second opinion from a professional coin advisor is one precaution you can now take before making a purchase. Our advisors are happy to evaluate any coins you’re considering and will help educate you so that you’ll make an informed decision for your financial future.