Canada's Silver Coins: Past and Present
Once, the criminal element took advantage of fluctuations in the market to melt down vast quantities of Canadian silver coinage, selling them for their significant scrap value. However, this era has long passed.
Historical Context and Market Fluctuations
It was not until the late 1960s that the Canadian mint ceased producing silver coins for regular circulation. The rise in silver prices made these coins more valuable melted down than their face value. This led to a dramatic shift in the way these coins were treated by the public and the authorities.
Customs Checks and Border Searches
During this time, there were reports of cars being searched at border crossings in Niagara, where Canadian customs officers would notice the weight of silver coins affecting the load. In response, these silver coins were effectively rendered obsolete for everyday use.
The Modern Coinage Landscape
Today, the Royal Canadian Mint continues to produce various silver coins, but they are primarily intended for investment and commemorative purposes. One notable example is the 99.99 pure 1-troy-ounce Silver Maple Leaf coin. With a face value of CAD 5 and a price often exceeding CAD 30, these coins serve as investment pieces rather than day-to-day currency. Similar coins, such as loonies and toonies, maintain their value and are used in transactions.
Royal Canadian Mint's Product Line
The Royal Canadian Mint also produces commemorative coins made from silver at various denominations. These coins, however, are not intended for general circulation and are sold at around CAD 30. Occasionally, the mint may produce 5 and 10 silver coins, which are relatively rare and primarily serve as collectibles.
Age of Pure Silver Coins
Before 1970, Canada did have pure silver coins in circulation. Specifically, dimes and quarters were made of pure silver. In my high school days around 1970, the soaring price of silver made older silver coins valuable not for their face value, but for their bullion worth. One of my classmates would cross the border to the United States to sell these coins for their silver content. Today, it is challenging to find these pure silver coins outside of coin collections.
Collecting and Valuation
Collecting these coins can be a rewarding hobby for those interested in numismatics. However, due to the high market value, they are not typically found in everyday circulation. Most pure silver coins are kept by collectors or enthusiasts who appreciate their historical significance and bullion value.
Conclusion
While the landscape of Canadian silver coins has significantly changed over the years, there are still opportunities for those interested in collecting or investing in these historically significant pieces. Whether for hobbyists or investors, these coins offer a fascinating glimpse into the past and the shifting dynamics of currency and bullion markets.