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Posted in Money

Silver Maple Leaf vs. Silver Eagle

Silver Maple Leaf vs. Silver Eagle

At a Glance

The Silver Eagle is the most popular and most recognized silver bullion coin in the United States. However, the Silver Maple Leaf is an excellent alternative that can save you a bit of money.

Investing in a variety of commodities is a good call that any investor should do. Silver has shown a great potential for gains in recent years, but it still remains affordable enough that it isn’t too late for would-be investors to buy some. These features have made silver incredibly popular. Minted since the 1980s, the American Silver Eagle and Canadian Silver Maple Leaf are two of the world’s most popular silver bullion coins. Although the Silver Eagle is the most popular silver bullion coin in the United States, the Silver Maple Leaf also enjoys a great deal of popularity due to its higher silver purity and slightly lower cost.

Similarities

Pictured at top: American Silver Eagle

Many Silver Maple Leaf vs. Silver Eagle articles would start with the basics, similarities and differences of these two products. First the similarities: both silver coins contain one troy ounce — about 31.1 grams — of pure silver, and both are alloyed with other metals for extra durability. However, the Silver Eagle is 99.9% pure, while the Silver Maple Leaf is 99.99% pure. Although the difference is minute, you can see it in the slight color difference between the two coins. Both coins carry a nominal face value. At the time of writing, the Silver Eagle has a face value of $1.00 US, while the Silver Maple Leaf has a face value of $5.00 Canadian. At present, the United States and Canadian dollars are roughly equal in value, although the value of silver is much higher than either amount. Nevertheless, if the value of silver bottomed out and you were forced to spend your silver bullion at face value rather than selling it for the silver content, you would have greater purchasing power with the Silver Maple Leaf.

Differences

Those who want to discover the disadvantages and advantages of the Silver Maple Leaf vs. Silver Eagle should focus on these coins’ differences. The Silver Maple Leaf is minted in far lower quantities when compared to the Silver Eagle. In this sense, it can be said that the Silver Maple Leaf is rarer. However, both coins are minted in the tens of millions each year to keep up with the public’s rampant demand for silver. In addition, because the standard designs for these coins do not change from one year to the next, you may have difficulty convincing a buyer to pay a premium for your older Silver Maple Leafs or Silver Eagles simply because of their age. The earliest Silver Eagles and Silver Maple Leafs are exceptions to this; they were minted in much lower quantities and are quite rare.

Trends

The demand for silver has increased in the past few years. This is the reason why silver coins nowadays are a primary target for those investors who want to diversify their portfolios. However, recently, the Canadian government has slightly limited the minting of their Silver Maple Leaf so as not to flood the market. For Americans, there is an additional benefit to buying Silver Eagles as they are tax-deductible when purchased for a traditional IRA.

Silver Maple Leaf or Silver Eagle?

If you live in the United States and are concerned about investing in a silver bullion coin with a stable price, high level of familiarity and tax-deductible status, it’s a no-brainer: you should invest in the Silver Eagle. However, the Silver Eagle tends to be bought and sold at a slightly higher premium over the spot price of silver than the Silver Maple Leaf. Thus, it will cost you more to acquire the Silver Eagle. If you want to spend less for your silver but still want a silver coin that can be used as legal tender, the Silver Maple Leaf is the best option.