Palladium Canadian Maple Leaf Coins

Canada’s only official bullion palladium coin is called the Canadian Palladium Maple Leaf. It is also referred to as a Royal Canadian Mint Palladium Coin or simply a Palladium Maple Leaf. Investors and coin collectors value this coin for its status as both legal tender and a coin with considerable face value. The Canadian government backs the coin’s face value and the weight and purity of the palladium within each coin. This coin is the fourth member of the Maple Leaf pure bullion coins series, joining the ranks with gold, platinum and silver Maple Leaf coins as a valuable precious metal coin collectors can purchase. Because of its relatively short history and limited production, the coin is a rare collectible and is considered extremely popular in today’s markets.

History

The Canadian Palladium Maple Leaf coin was first introduced in 2005 when it was minted by the Royal Canadian Mint. The coin was produced only intermittently in the first several years of its history, with releases in 2005, 2006, 2007, 2009 and not again until 2015. However, these coins are not issued on an annual basis, and they are now harder to find and invest in than other Maple Leaf series coins.

In 2005, the Royal Canadian Mint created only 40,000 of the coins and only 15,000 in 2007. The coin’s initial reception was lukewarm. In the years following the 2008 global recession, investors began to see the value in palladium coins. This led to a sharp increase in demand, and the Royal Canadian Mint produced more palladium coins in 2009. Since then, the Canadian Palladium Maple Leaf coin has become a coveted investment and collection commodity around the world.[1]

Value

Canadian Maple Leaf Palladium coins are considered legal tender in Canada, and the value of the coins due to its material makeup its face value is even higher than its currency value. The coin, as legal tender, has a monetary value of CA$50. Because the material is 1 troy ounce of 99.95% pure palladium, it also has significant value on the market. The face value of the coins changes from day to day or even from second to second due to fluctuations in palladium’s spot prices. Royal Canadian Mint Palladium coins are the only form of palladium-based legal tender backed by a major government’s mint, making the coins even more valuable to numismatists.

Palladium is an excellent choice as a financial investment, and Canadian Maple Leaf Palladium coins are no exception. It offers diversification for investors who want to expand their financial portfolio with stable investments. Palladium, as one of the least common naturally occurring metals in the world, can be an excellent addition to investment portfolios.

Precious metal investments are a slightly unusual but perfectly acceptable investment option for self-directed Individual Retirement Accounts (IRAs), which have a wide variety of tax benefits for investors. Investing in precious metals (and precious metal coins) through an IRA is only permitted when the metal upholds a suitable purity level. For palladium investments, the coin’s palladium purity level of 99.95% satisfies this requirement.

Palladium can offset risks from investing in domestic and international markets or more traditional precious metal investments like gold and silver. However, investors should be aware that purchases of these coins are subject to the Goods and Services Tax (GST)/Harmonized Sales Tax (HST).

If you want to invest in palladium through an IRA, either in the form of bullion bars or bullion coins like the Canadian Palladium Maple leaf, the United States Internal Revenue Service (IRS) requires investors to make a minimum first-time investment of $5,000. Future investments must be at least $1,000 per investment occurrence. [2]

Royal Canadian Palladium Maple Leaf coins are always made with a troy ounce of palladium. Unlike many other collectible coin series with precious metals, it is produced in only one weight or denomination: the signature CA$50 palladium coin.

Design

These coins have a mass of 31.11 grams and are 34 millimeters in diameter. The obverse face of the Canadian Palladium Maple Lead coin features a profile engraving of Queen Elizabeth II. Many precious metal coins around the world have an image of Queen Elizabeth II due to the British Empire’s historical presence across the globe. This portrait engraving was designed by Susanna Blunt. The top edge of the obverse coin face says ‘Elizabeth II’ and the bottom half has the currency value ’50 Dollars’  and the mint year engraved on it.[1]

On the reverse side is a stylized engraving of a maple leaf. It’s emblematic of the maple leaf featured on Canada’s flag and features finely made details and veins. The maple leaf is Canada’s national symbol and is also featured on the gold, silver and platinum Canadian Maple leaf coins. The upper edge of the reverse face says ‘Canada,’ with ‘Fine Palladium 1 oz Palladium Pur’ along the bottom of the coin face. It also lists the purity of the palladium  ‘9995’ or 99.95% on both the left and right side of the maple leaf. The edge of the coin is serrated.

Canada does not produce or refine large amounts of palladium domestically. Instead, most of their (and the rest of the world’s) palladium comes from either South Africa or Russia. This rarity and lack of direct control can make access to palladium insecure and hard to predict. This limits the total production of Canadian Palladium Maple Leaf coins. While this can cause the investment to be harder to make, it also provides an additional layer of value for collectors.

Canada’s 1-ounce Palladium Maple leaf coins are a beautiful addition to any coin collection. They also uphold their value as a form of currency and an investment to hedge against sudden decreases in the global stock market in general investments and self-directed retirement accounts.


Footnotes:

1. Royal Canadian Mint. ‘Palladium Maple Leaf Coin (Bullion),’ https://www.mint.ca/store/content/bullionProductDetails.jsp?itemId=prod2500601&cat=Products&nId=7400002&parentnId=1300002&nodeGroup=About+the+Mint. Accessed September 21, 2020.

2. Gold IRA Guide. ‘Canadian Palladium Maple Leaf Coins,’ https://goldiraguide.org/allowed-in-ira/canadian-palladium-maple-leaf-coins/. Accessed September 21, 2020.