THE NEW RCM $20 SILVER COIN. WHEN IS A TWENTY A TWENTY?

The Royal Canadian Mint has begun issuing $20 silver coins that are exchangeable for bills or coin money at face value...It's a small reversal of a decades old trend that has seen all currencies world wide become tokens with no intrinsic value...All our money is now made of polymer and steel for example whereas our coins were sterling silver and 80% silver along with copper and nickel at different points in Canadian history. The silver $20 coins can be ordered online where mailing costs are incurred but one can also walk into the RCM retail store at 752 Granville, and other RCM shops around Canada, hand over a $20 bill  (or steel coins) and receive a solid, 9999 silver, $20 coin! The limited issue coin won't be sufficient to transfer wealth from the fed to the trouser pockets of the nation en masse but this is a rare and valuable chance to take silver out of government coffers with no premium....I don't know of anywhere else in the world where this is currently possible. http://www.mint.ca/store/product/coin_exchange.jsp?itemId=prod1660011&sp_rid=MjgxNDM1MTM1NgS2&sp_mid=5827421&spMailingID=5827421&spUserID=MjgxNDM1MTM1NgS2&spJobID=69260611&spReportId=NjkyNjA2MTES1

The silver coin thing is a strange thing when one is trying to attach value for the holder. 

The $20 silver coin that the mint is issuing weighs about 1/4 of an ounce.  On the spot market (that is the wholesale price of silver via the commodities market today) that's about  $7 bucks worth of silver...So why would anyone pay $20 bucks for that much silver?..Well because you aren't buying silver, you are buying Canadian money.  The second reason is because the retail price of silver which is the price that you and I can pay for  a small amount at a store is much higher.......But still not not $20 bucks for a 1/4 ounce ...So why would anyone...?...Well because the mint says it's worth $20 bucks that's why and the mint has the hammer.   When we are talking about money, the mint calls the shots....The mint says that a piece of paper or polymer is worth $20 bucks and there's no silver in those bills at all.   But wait you say, if I can buy more silver for less money at a coin dealer's retail store such as J&M  then why would I pay $20 bucks for a coin with only a 1/4 ounce silver.   Which amounts to $80 bucks an ounce, when I can buy full ounce of silver for $35 bucks at a retail store?   Well because the 1 ounce silver maple leaf coin has a face value of only $5 bucks.  Even though it's legal tender, it's not designed for circulation as money because no one would spend a full ounce of silver to get $5 bucks worth of stuff at a store.   But we would be much more likely to spend a 1/4 silver coin that has a legal tender value of $20 bucks because we are only giving up a little silver.  But the seller would still be happy because he'd rather have silver than paper or polymer.

So it's still clear as mud right?..Yep....There's more.  A big reason why folks hold silver is because it's international currency...It's transportable wealth....The problem with holding debased currency ,especially coins that are made of little or no silver or gold, is that the world runs on paper money.  Coins generally can't be used at an international money exchange, can't be used at an ATM and if they have  intrinsic silver or gold value then one will likely have to go to a precious metals/coin dealer to get full value.  What does this all mean?  Well what it means is that we still need paper and polymer $20's.  But when the mint offers a silver $20 coin for paper $20....We should jump on that chance.  The coin will always have purchasing power of $20 in Canada plus we are getting a 1/4 ounce of silver in the bargain.  These coins have the backing of the Canadian Fed as legal tender AND the backing of the silver market for as far into the future as anyone can look.  If the price of silver goes down to a $1 an ounce one can always spend the coin and receive $20 bucks worth of gas or bread and anyone will exchange it for a paper $20.   If the price of silver goes to $80 bucks an ounce then the coin can be sold for 4 paper or polymer $20's!  That said, if you want to invest in silver because you believe the price will rise or because you want to create a doomsday fund then you should buy 1 ounce silver maple leaf coins because you get more silver for your money. You could still spend them if you had to and if the price of silver went to $1 an ounce they'd still be worth $5 bucks each.  The bottom line is.....Trade some of that paper cheque or that direct deposit or some of those paper $20's for silver and gold coins.  The future is uncertain but I'm not being apocalyptic.....Just look at what has occurred in Cypress these last few days.  The jury is still out on who will have his/her money seized by the state and how much.....The banks have been closed to prevent people from withdrawing their money.  This situation is a perfect example of why people should hold their own money in precious metals outside the bank or any other institution....Because when we need our money most of all, the bank will likely be closed TO STOP US FROM GETTING AT OUR MONEY!  And Cyprus is a Euro-zone country!  There are no guarantees in life as we all know.  We all like to think that this kind of thing won't happen in Canada but even if it doesn't there are good reasons for diversifying some of our wealth into precious metal coins.The coincidental occurrences of the Cyprus banking crisis and issuance by the RCM of the $20 silver coins can serve as a reminder.
  There are those who lament the move away from the gold standard that governments around the world have made in the 20th century.   Perhaps using cash that's made of gold and silver doesn't make sense in the modern economy. But for those of us who simply want our money to be made of traditional gold and silver instead of some sort of polyester resin like Mylar, Canadians are living in one of the very few countries in the world where this still is done.

BURKE WHACKED BY THE LEAFS IN TORONTO....LUONGO STILL ON THE CANUCKS BLOCK

The sensational beheading of the Toronto Maple Leafs general manager Brian Burke yesterday provided an electrifying start to the 2013 season along with the kind of finish all hockey fans needed to the stultifying months of the NHL lockout.  No one saw this coming....not Brian Burke, not Dave Nonis, not the media and not me.
When Brian Burke went to manage the Leafs 4 years ago he was asked about what it would take to turn the Leafs into a winner.  Confident as always, as is necessary,  to his answer, he added the remark that ultimately describes the depth of his experience after decades in the game...."if management gives me the time."  The management that hired him gave the time, contractually speaking,  but the management team that fired him is not the same one. ( Bell and Rogers announced they were buying a 75-percent stake of MLSE last August). Most know that new bosses often clean house to make way for staff that they know and trust.  But this considered, unless there are underlying reasons that no one is privy to except the inner, top management team of Maple Leaf Sports & Entertainment, this firing is a beautiful target for mud slinging and fair game for many rounds of analysis.
We still don't know why one of the most dedicated, experienced, passionate, successful, controversial  and best known managers in all the world of hockey was summarily dismissed yesterday, ten days before the start of the season and with 2 years to go on a multi million dollar contract.  The applauders can point to the lack of playoff success, the questionable wisdom of trading away valuable draft picks to aquire Phil Kessel, the parachute like implementation of Dion Phaneuf as team captain,  and the accusation that the the Leafs of today are no better than the Leafs of 4 years ago, especially if one is looking down center ice and onward toward the Leafs' net. ( Meaning that the Leafs don't have a brand name center nor goalie.)
But a more philosophical analyst would point out that building a winning team out of a perennial loser is a time consuming balancing act at the best of times.  The GM has to put a certain number of corner stones in place fairly early in his tenure and then fill in the remaining bricks as best he can over the following seasons as they become available, all the while reacting to the on going ups and downs of injuries, scandals, bad luck and other unforseen situations.
GM's that get fired often get to watch their replacements reap the rewards of firees efforts,  Ask Brian Murray about that, or ask Dave Nonis.
Speaking of Dave Nonis, if MLSE didn't like the moves that Brian Burke made, why didn't they whack the guy that helped make those moves.  Everyone knows that Nonis and Burke are a tight and loyal team.  Maybe the bean counters thought that since Dave was in place they didn't need Brian..I'm not sure how Brian's buyout clause reads.....but that can't be it because every one knows that the Leafs' are awash in money and the GM's contract doesn't have to come in under the cap....So one could say that Brian helped facilitate his early demise by having an assistant in place that is TOO GOOD!
As for my never humble opinion, the prudent thing for MLSE management to have done would have been to stand by and watch the GM do what he was hired to do for for the length of time it takes to get it done.  After all, if the Leafs are no closer to a cup now than they were 3, 4, 5 or  40 years ago....at least they are no farther away.  The stands are full, the season start imminent.....folks, this firing makes no sense.  Yep, well it's a world gone mad and sports reflects that so lets play hockey you might say.
Well then, will Dave pull the trigger on the what will surely be the most dramatic trade of this truncated season?  Will the guy that brought Roberto Luongo to Vancouver bring that same goalie to Toronto?  Many say yes.   If money is no object then why not bring the best, brand name goalie on the market to the biggest, hockey market in the world that needs a  brand name goalie? The answer is,  because its not just about money.  The Canucks aren't getting rid of Luongo to dump salary.  They are getting rid of Luongo because...uh....well actually it's not clear why they are getting rid of Luongo....nor if they even are.  Mike Gillis has said repeatedly that he really likes having two good goalies.  I wrote last spring when the "trade Luongo drums" became thunderous that it makes no sense to trade Luongo...and Mike Gillis has a lot of sense.  Also, the cap squeeze that the Canucks felt last spring has eased a little because several players that were part of that squeeze have popped out...Sami Salo signing in Florida is a case in point.  So now the Canucks are in exactly the place that they were in last season.  They have two very good goalies...and they can afford them as well.  Just like the LA Kings for example, who with an injured cup winning Jonathon Quick are very glad to have Jonothan Bernier ready to go.
The Leafs are in a different spot.  James Reimer has shown glimpses of brilliance and Ben Scrivens has yet to get a big break at the NHL level and was not a high draft pick.   But eviscerating the Leafs roster to get Luongo makes no sense to me from Toronto's stand point which is why Burke didn't want to do it.  The price is just too costly to the roster...not only to the cap hit.
Right so here's what makes Canucks fans scream and Leaf fans dream.   The Canucks should trade Cory Schneider to the Leafs for James Reimer, Tyler Bozak and sting 'em for a draft pick as well.  Both teams have their brand name goalies with backups.  The Canucks don't need Luongo's permission.  Both teams are under the cap.  The Canucks have their second line center and an ace in the pocket for giving up a brand name goalie for prospects.  Ok so talk amongst yourselves!