Buying a silver coin
Posted by admin on October 1, 2009 in Investment Products
I bought a silver coin this week as a small token of appreciation for someone. Having never done it before, here’s a quick and dirty of my experience. I don’t remotely pretend to be an expert in buying and selling precious metals so please feel free to comment if you have anything to add to buying silver or physical gold.
I bought my coin at Scotiabank’s main branch at Scotia Plaza. They have a separate foreign exchange and precious metals desk. If you are not a customer of the bank selling you a silver or gold coin, you will have to bring two pieces of id (one of them has to be photo id). I am sure you have to pre-order for much larger orders (there is an item in the bill for “armoured car” charge; I wonder how much gold or silver you have to buy to be charge with that charge!).
I bought a 1 oz silver maple coin. Here is the catch. Even though the coin is Canadian (hence, a maple coin), the price is quoted in U.S. dollars. I am told bullion and coins are quoted in USD no matter the country of issuer. In other words, factor in the exchange rate.
The price per oz was $20.41 that day. Exchange as at 1.115%. Commission is $5.00 up to $2,000 then, according to the employee behind the desk, from $200.01 to $5,000.00, commission is another quarter of a percent and then an eighth of a percent above $5,000.00. Sales tax of 8% was also charged. The total ended up being $30.60.
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1 Comment on Buying a silver coin
By The Rat on October 3, 2009 at 9:08 pm
Right on. I never knew you could actually buy silver coins or precious metals of any kind at the Bank of Nova Scotia. Did you feel like keeping the coin after buying it instead of a token of appreciation for that someone?
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