The Royal Canadian Mint has started accepting pre-orders for the second coin within their “$100 for $100 Series”, which offers 1 oz. silver coins for their legal tender face value.
The new release is called “The Grizzly” and features an image of a grizzly in motion as it splashes through the water catching a salmon in its jaws. The inscriptions include the “2014” date and the legal tender face value of “$100 Dollars”. The obverse design carries the portrait of Queen Elizabeth II by Susanna Blunt.
Each coin is struck in 99.99% pure silver with a matte proof finish. The weight is 31.6 grams and the diameter is 40 mm. A maximum mintage of 50,000 pieces has been established, with an ordering limit of 3 coins per household. The coins are priced at their exact face value of $100 CAD.
At this time, the coins are available for pre-order by Master’s Club members. Orders will be accepted from the general public at a later date.
The Royal Canadian Mint’s “$100 for $100” series follows the success of the ongoing “$20 for $20” series, which offered smaller sized pure silver coins for their face value. The new $100 face value series began in May 2013 with a silver coin featuring three buffaloes in motion. A sell out of the 50,000 maximum mintage occurred shortly after ordering opened for the general public.
Every time the Royal Canadian Mint or any other world mint offers a precious metal coin for its legal tender face value, there are always at least some comments about how the intrinsic value of the metal content is less than the issue price (and value value). This is once again the case for the latest release. The coins contain 1 troy ounce of silver worth about $22 based on the current market price, which is far below issue price of $100.
The present offering is not a bullion coin, which would be priced much closer to its intrinsic value. Rather, the offering represents an interesting hybrid of a numismatic coin and legal tender coin. The coins feature the unique artistry, a higher quality finish, and mintage limits more typically associated with a numismatic coins, however a high legal tender face value is established which serves to provide an ultimate backstop to the value of the coin. I have not seen any of the RCM’s coins from the “$20 for $20” or “$100 for $100” programs ever offered or sold on the secondary market for less than their face value, and very often they carry a premium. There is also a mechanism in place for cashing the coins in for their stated face value.
Clearly, the concept has resonated with collectors as the Royal Canadian Mint continues to achieve an enthusiastic response and quick sell outs for newly offered coins. The RCM has also credited the programs as a significant driver for increasing their numismatic customer base.