Gold’s Lost Century

The so-called Canada Hoard is one of the most important and remarkable numismatic stories of the century. Read on to find out the history of these incredible gold coins.

Canada’s First Gold Coins

Set up in 1908, as a branch of the Royal Mint, the Ottawa Mint produced UK Gold Sovereigns to be circulated within Canada. They were set at a value of four Canadian dollars, eighty six cents and two thirds of a cent- Pre-decimalisation is a nightmare. In 1912 they struck the first truly Canadian gold coins. These coins have a face value of $5 and $10. These coins were made using native gold, mostly taken from the Klondike River Valley which was the site of one of the largest gold rushes in human history. The coins were struck at a purity of .900 fine gold, with the $10 coin containing 0.4838Oz of gold, and the $5 half of that, with a coin weight of 16 and 8 grams respectively. They feature King George V’s portrait by Sir Edgar Bertram MacKennal on the obverse and the 1868 Canadian coat of arms on two crossed maple leaf branches on the reverse. Above the shield is inscribed CANADA, and below is the year of production and denomination.

Hidden By War

They were minted between 1912-1914. At the outbreak of war, the Canadian government stopped production of all gold coins and switched to making gold bars. The Canadian Government also recalled all gold coins from circulation to help build and maintain their war chest. The conflict meant that the government moved 200,000 of these uncirculated gold coins into the vaults of the Bank of Canada. They were stored in cloth bags and had not been seen since the outbreak of the war.

Uncovered by Financial Crisis
Laying forgotten, This hoard became a myth to gold collectors, with people debating its location, existence and value. These incredible coins were rediscovered in the early 2000’s when Canada began selling its gold reserves to balance the budget. Spared the initial rounds of sale, these coins were finally set to be melted down and sold off in 2012.

Spared Destruction

Realising the historical and numismatic importance of these coins, the Canadian Mint handpicked 30,000 of the discovered hoard that, were deemed to be of the highest quality, and released them to collectors.The average grade of these released coins was MS-63. The rest were melted down and sold.

Own an Important Piece of History

This is an incredible, once-in-a-lifetime chance to own a coin with this level of significance, rarity, and provenance. Talk to one of our specialists now to secure yours; as stocks are incredibly limited.

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In the realm of investments, where options abound, gold coins emerge as a timeless and unparalleled asset. GoldCap delves into the compelling reasons why gold coins stand tall above other investment avenues, illustrating their superiority in preserving wealth and offering enduring value.

Tangible and Timeless: Physical Ownership
Gold coins offer something unique in the investment sphere—tangible ownership. Unlike stocks or bonds existing in digital realms, gold coins are physical assets, providing a sense of security and ownership. Holding a tangible piece of history, bearing intrinsic value, empowers investors with a real, palpable asset.

Hedge Against Economic Uncertainty: Stability in Volatile Times
In times of economic turmoil, gold coins act as a shield, safeguarding wealth. Their intrinsic value and historical track record as a hedge against inflation and market volatility make them a reliable refuge during uncertain periods. Gold's stability amidst financial fluctuations makes it an anchor in an investor's portfolio.

Universally Recognised Value: Global Acceptance
Gold coins possess a universal language—one of value recognised worldwide. This inherent global acceptance translates into liquidity. Irrespective of geographical boundaries, gold coins retain their value, ensuring ease of buying, selling, and exchanging—an attribute unmatched by many other investments.

Diversification Champion: Balancing Risk
Building a diversified portfolio is key to managing risk, and gold coins excel in this aspect. Their performance often moves independently of other assets like stocks or real estate, providing a buffer during market downturns. Their low correlation with other investments ensures a balanced portfolio, mitigating overall risk exposure.

Inflation Hedge: Preserving Purchasing Power
Inflation erodes the purchasing power of currency, but gold coins serve as a hedge against this erosion. Historical evidence showcases gold's ability to maintain value over centuries, making it a reliable instrument for preserving wealth in the face of inflationary pressures.

Enduring Value and Legacy: Passed Through Generations
Gold coins transcend generations, carrying with them a timeless value and historical significance. Their allure doesn't fade; instead, it appreciates, often becoming cherished heirlooms passed down through families. Investing in gold coins isn't just about wealth preservation; it's about leaving a legacy.

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In the world of precious metals, sovereign coins hold a unique place. They aren't just symbols of wealth; they embody the history and legacy of nations across centuries. Their journey through time reflects not only the fluctuations in their intrinsic value but also the ebbs and flows of human civilisation. Among these coins, gold sovereigns have stood as a testament to stability and value preservation.

Early Beginnings

The inception of sovereign coins traces back to ancient civilisations. The concept of minting coins, initially used for trade and commerce, evolved over time. However, the true genesis of sovereign coins, specifically gold sovereigns, can be credited to the 15th century.

The English Gold Sovereign, first minted during the reign of Henry VII in 1489, represented a standard of purity and reliability. Its introduction marked a pivotal moment in monetary history, establishing a benchmark for other nations to emulate.

Historical Significance

Throughout history, sovereign coins were more than just currency; they were symbols of power, authority, and national pride. They often bore the effigies of rulers, depicting the political landscape of their times. These coins served as a means for governments to display their stability and legitimacy to both domestic populations and international trade partners.

For instance, the famous British Gold Sovereigns featured the likenesses of different monarchs, reflecting the changing faces of the nation and its historical events. Similarly, other nations like France, Spain, and the Netherlands had their versions of sovereign coins, each carrying its own historical narrative.

Price Trends Over Time

The value of sovereign coins, particularly gold sovereigns, has fluctuated over centuries, mirroring the economic and geopolitical shifts. Tracking the price of these coins over extended periods showcases the enduring nature of gold as a store of value.

Numerous sources and historical records provide insights into the price variations of gold sovereigns. One notable study conducted by economic historians revealed the long-term stability of gold's purchasing power. Over centuries, gold sovereigns have consistently held significant value and seeing constant continued growth, acting as a hedge against inflation and economic uncertainties.

Contemporary Significance

Even in the modern era of digital currencies and financial innovations, sovereign coins maintain their allure and relevance. Collectors, investors, and governments continue to appreciate their historical significance and intrinsic value.

GoldCap, a gold company, recognises the enduring appeal of sovereign coins. As they remain a tangible representation of wealth and history, they continue to attract investors seeking stability and long-term value preservation.

In conclusion, the history of sovereign coins intertwines with the fabric of human civilisation. From their humble beginnings to their contemporary significance, these coins stand as a testament to the enduring value of gold and the resilience of wealth preservation over time.

(Sources: British Museum, World Gold Council, National Archives, Economic History Review)

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