Buying one of these

[Karmic]

[ QUOTE ]
Okay, liquidity problems aside, this coin has one thing going for it: it has a nominal value of CAD 1 million. With gold at $686 today, the coin is worth CAD 2.5 million. Thus it has a built in safety feature. If gold drops below $275, the nominal value would be higher than the gold value. It's like buying both gold and a put at $275.

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The subway next to me won't even take bills over $20.

[elus2]

[ QUOTE ]
Okay, liquidity problems aside, this coin has one thing going for it: it has a nominal value of CAD 1 million. With gold at $686 today, the coin is worth CAD 2.5 million. Thus it has a built in safety feature. If gold drops below $275, the nominal value would be higher than the gold value. It's like buying both gold and a put at $275.

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Do you actually think this will go for the face value of the coin? Expect to pay a lofty premium above the actual market of the metal.

[The4Aces]

[ QUOTE ]
[ QUOTE ]
Okay, liquidity problems aside, this coin has one thing going for it: it has a nominal value of CAD 1 million. With gold at $686 today, the coin is worth CAD 2.5 million. Thus it has a built in safety feature. If gold drops below $275, the nominal value would be higher than the gold value. It's like buying both gold and a put at $275.

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Do you actually think this will go for the face value of the coin? Expect to pay a lofty premium above the actual market of the metal.

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he knows you have to pay a premium. its just that if gold tanks in value this has a minimum that you can lose.

[elus2]

Gotcha. Misread.

[maxtower]

The bullion Maple Leaf coin sells at a small premium over the spot price of gold. I imagine this will do the same, but the Mint will probably make you pay a premium to spot as well.

[Copernicus]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Okay, liquidity problems aside, this coin has one thing going for it: it has a nominal value of CAD 1 million. With gold at $686 today, the coin is worth CAD 2.5 million. Thus it has a built in safety feature. If gold drops below $275, the nominal value would be higher than the gold value. It's like buying both gold and a put at $275.

[/ QUOTE ]

Do you actually think this will go for the face value of the coin? Expect to pay a lofty premium above the actual market of the metal.

[/ QUOTE ]

he knows you have to pay a premium. its just that if gold tanks in value this has a minimum that you can lose.

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Gold isnt tanking below 275 in my lifetime, and i dont think it has enough upside to be able float much of a premium.