Vol. 145, No. 21 — October 12, 2011


SOR/2011-192 September 22, 2011


Order Amending Part 1 of the Schedule to the Royal Canadian Mint Act

P.C. 2011-941 September 22, 2011

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 6.1 (see footnote a) of the Royal Canadian Mint Act (see footnote b), hereby amends Part 1 of the schedule to that Act by adding the following after the reference to “One million dollars”:

One hundred thousand dollars


(This statement is not part of the orders.)

Issue and objectives

The Royal Canadian Mint (RCM) wishes to produce a non-circulation gold numismatic coin with the denomination of $100,000. However, at present the RCM is not authorized to produce coins with the denomination of $100,000. Pursuant to Section 6.1 of the Royal Canadian Mint Act, the Governor in Council may, by Order, amend Part 1 of the schedule by adding or deleting a denomination of a non-circulation coin. Thus, the purpose of this Order is to amend the schedule with the addition of the new denomination of $100,000.

Currently, the RCM produces 99.999% non-circulation gold numismatic coins featuring denominations of $10, $150, $200 and $350. Based on the popularity of the $1,000,000 gold coin that was launched in 2007, there has been strong customer demand both nationally and internationally, for a large numismatic coin containing 99.999% gold with a high denomination. In response to the strong demand reported by the Royal Canadian Mint’s Outbound Sales Team, the RCM would like to produce a 10 kg ($100,000 face value) gold coin. This demand has been largely due to the increasing price of gold in the market and the fact that many see gold as a solid investment. This perception has been reinforced by the Mint’s $1,000,000 gold coin which is presently more valuable than its original retail price in the secondary market as the market value of gold has increased significantly.

Description and rationale

There are only two known types of 10 kg gold numismatic coins presently being produced in the world. One is produced by the Central Mint of China and the other by the Perth Mint; however, both are composed of 99.99% gold as opposed to 99.999% gold. The RCM’s 10 kg gold coin would be the world’s purest gold coin featuring this new denomination. The production of this coin would not only create market visibility for the RCM but would also strengthen its position as the purest gold coin producer in the industry.

The 10 kg gold coin would be sold in Canada and internationally by the RCM and would be used by the RCM for advertising and promotional purposes at national and international coin shows.

Given the value of the gold in a 10 kg gold coin, it is felt that $100,000 would be an appropriate face value. As that denomination is not on the schedule, the RCM is requesting that the $100,000 denomination be added to the Royal Canadian Mint Act. It would be the second highest denomination of all non-circulation numismatic coins that the RCM has ever produced since the production of the $1,000,000 gold bullion coin in 2007. More importantly, it would be the world’s highest denomination 10 kg gold coin, as the 10 kg gold coin produced by the Central Mint of China has a denomination of 100,000 Yuan ($15,150 CAD based on the exchange rate as at January 20, 2011) and the one produced by the Perth Mint has a denomination of $30,000 AUS ($29,557 CAD based on the exchange rate as at January 20, 2011).

The value of gold has risen significantly in the last 20 years, $383.51 USD an ounce in 1990 (cumulative average of the year) versus $1,224.53 USD in 2010, which is a 219.3% increase. As of January 2011, the markets were trading in the $1,400.00 USD range. Compared to the average price for January 2010 in the $1,100.00 USD range, this represents a 27% increase in one year. These considerable gains are predicted to continue and analysts have raised their 2011 gold forecasts higher than any other precious metals in the past two months (data compiled by Bloomberg). On December 27, 2010, Bloomberg mentioned that, according to Tom Kendall, the most accurate forecaster for 2010, gold may climb as high as $1,630 an ounce in 2011 as investors seek protection from financial turmoil in Europe and the U.S. and as Chinese demand rises.

Based on the January 20, 2011, gold market trading of $1,349.90 per ounce, the gold content of the 10 kg coin would be valued at $434,002.60 USD or $432,996.82 CAD. The retail price of the 10 kg gold coin would be based on the market value of gold plus a premium for fabrication costs and profit which would justify the face value of $100,000 for the 10 kg gold coin.

At present, the denomination of $100,000 is not included in the denominations of non-circulation coins that the RCM is authorized to produce (Part 1 of the Schedule to the Royal Canadian Mint Act). Consequently, in order for the RCM to produce a 10 kg gold coin, the RCM recommends that Part 1 of the Schedule to the Royal Canadian Mint Act be amended to include the denomination of $100,000.


The form of consultation used was discussions with the RCM’s Masters Club members, coin dealers and distributors who expressed a strong interest in this unique coin as they felt that this coin would create the same type of heightened interest and sales that the $1,000,000 gold bullion coin created in 2007.

Implementation, enforcement and service standards

The launch event for this coin will include a public Canadian launch in July 2011 (pending coin approval), a national press release and a media advisory promoting the event to the media and to coin dealers and distributors.


Marguerite F. Nadeau, Q.C.
Vice-President, General Counsel and Corporate Secretary
Corporate and Legal Affairs
Royal Canadian Mint
320 Sussex Drive
Ottawa, Ontario
K1A 0G8
Telephone: 613-993-1732
Fax: 613-990-4665
Email: nadeau@mint.ca

Footnote a
S.C. 1999, c. 4, s. 3

Footnote b
R.S., c. R-9