There are several factors that have direct impact on the value of Canadian coins today.
Some of them are the reason why coinage from Canada sometimes receives warm appreciation, and times are ignored and shrugged off.
To comprehend the drive of Canadian coin values, you must familiarize yourself with the history of how they were originally rated.
Standard grading and ratings of Canadian currency began during the chaos between the early French and British colonial periods.
During the early 17th century, there were various coins that had circulated over several countries and colonies.
These included several that came from France, England, Spain, Portugal, and several other colonies in Latin America.
However, because of the hazards induced by sea travel and the relentless imbalances of the trade, the home colonies had been left with quite a huge shortage of coins.
Because of this problem, the French and British authorities hoarded the coins and gave them significantly higher values than those that were produced in England and France.
To add to this already chaotic situation, all of the coins that had been produced since then have either been overrated or underrated compared to others.
This is because of the difference in the weight and material used to make the coins.
Despite several booms of inflation, and differences, the value of Canadian coins has persisted through the years.
Due to the major exchange rate regimes that have been experimented with during the nineteenth century, Canada has gotten used to the idea that it will always have a flexible exchange rate system come 20th century.
Today, one of the factors that greatly affect the worth of bullion will be Canada's role as one of the major commodity exporters and producers in the world.
Canadian coin values greatly reflect the value of products exported by the country.
If the demand for products is very high, then apparently, the currency value will rise steadily.
The same is also applicable for the supply of products.
If the supply exceeds the demand, it is more likely that the value of its home currency may lower greatly.
Another thing that may greatly affect the value of Canadian coins is the desirability of the currency themselves.
Many countries will have direct political or economic partnerships with another country - in this case, Canada.
Usually, desirability for the currency is acquired if the political situation of the country is very stable.
This means that there is a lesser chance for the countries involvement in war.
Given this case, when the economic situation of a country is stable, there is less risk that currency values will go down.
Purchasing power of one currency over the other is another factor in determining Canadian coin values.
There are rare cases wherein the purchasing power of one country will be the same as the other.
This is why travelling to different countries may prove to be either cheaper or more expensive when buying bullion.
For example, buying Canadian currency in Japan with US dollars costs more than buying it in Spain.
Meaning, the value of Canadian coins will either go up or down, depending on the country the sale is made in.
previous post
next post