The Worlds Biggest Coin, Put $1 Million (Or Actually More) In Your Pocket

Posted on September 26, 2007 , filed under Stocks | Print This Post

So you may be interested in investing in gold. If you’re like most people you may look at investing in gold stocks or small gold coins. If you are on the uber wealthy side you may look at putting this $1 million dollar coin in your pocket. Beware though you’re going to need bigger pants than you already own. The $1 million dollar gold coin is made from 99.999% pure gold and weighs over 220 lbs.

The coin was made in a Winnipeg Canada minting facility and is valued in Candian dollars. With a Canadian dollar exchange rate of .99727, that makes the coin nearly equivalent to a million US dollars. If the USD continues to weaken against the CAD, the coin may actually be worth more than $1 million USD over time. Another factor affecting the value of the coin is the current price of gold. Let’s look at some metrics:

220 lbs = approximately 3520 ounces
3520 ounces/$1 million usd = $284 usd per oz.

It looks like this gold coin was valued with gold at $284 per oz. Gold is currently trading for $730 per ounce. If we multiply 3520 ounces by $730 we get a value of $2,560,600. That’s not a bad investment, spend $1 million and get over $2.5 million dollars in return.

If we guess that gold will hit $800 by the end of 2008, that puts that value of the coin at $2,816,000 in physical gold. That’s not a bad way to invest in gold and you won’t need to buy bigger pants as the value of the coin grows.

For a more traditional means of investing in gold, check out my article: Investing in Gold, Watch the AMEX Gold Bugs Index (HUI).