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I was recently taking a look at the the new Zodiac silver coin series of the Canadian Mint.

For each Zodiac sign silver coin, the number minted is 5500 coins. their face value is 3 $CAD , 99.99% silver and weight around 7.96 gm. Each coin has two small Swarovski crystals. Obviously, the precious metal worth is around 5$ CAD given that 1 gm of silver is 0.73$CAD and the two crystals could add few dollars to the value.

So speaking of worth, the coins are potentially worth 10$ CAD. The mint sells them for 55$ CAD.

I am a novice and this might be my first purchase. Am I missing something about how such coins are valued? Is the price difference simply because it is a collectable coin and the difference is a profit for the treasury?

Brythan
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The Byzantine
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2 Answers2

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Their "worth" is whatever someone is willing to pay to have them. The mint presumably thinks that some people (collectors) are willing to pay at least 55$ CAD for them. Their value as currency is only 3$ CAD. Their value as precious metal/crystal is irrelevant, as its illegal to melt (without explicit permission) coins that are legal tended in Canada.

D Stanley
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This is how mints make money. They sell limited runs of items at a price significantly higher than their manufacturing cost. Some buyers hope that the scarce nature of the item will cause others to value it higher than the initial offer price but also some people just like to have them.

David Schwartz
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