In the world of finance, the word “arbitrage” refers to buying something in one market, and simultaneously selling it in another, profiting from a temporary price difference. According to Investopedia, this form of profit is considered practically risk free for the investor/trader. 😀 Well I have recently found such an arbitrage opportunity in the gold bullion market.
Introducing the 2014 Howling Wolf 99.999% Gold Coin
Several days ago I went out to buy the 1 oz. pure gold 99.999% – 2014 Howling Wolf coin made by the Royal Canadian Mint. The Howling Wolf gold coin cost me $1,389 CAD to purchase. The slight premium over the spot price of gold is due to the spread charged by the broker and the unmatched purity of the coin (most bullion is only 99.99% pure gold.) Details below with proof of purchase.
If you live around Vancouver you can buy it from the VBCE, which is where I bought my coin. The current quoted price on their website is about $1,400 CAD. In Calgary albern.com currently sells it at $1429 CAD. In Florida, gainesvillcoins.com sells this coin for $40 over spot per oz. If you live around Toronto you can visit the Canadian Bullion Services to buy the coin. You can also order it online and pick it up in their store or have them mail it to you. In fact many of these companies I mentioned ship worldwide. There are hundreds of dealers across North America so this coin is relatively easy to obtain.
Howling Wolf .99999 Gold Coin Review
This is one of the best coins I’ve ever seen. The design of the wolf on the reverse side is very detailed, and the finely wrought texture of the wolf’s coat and the realistic portrayal of its gaze is almost lifelike. 🙂 The obverse side of the coin features the exquisite profile of Queen Elizabeth II and stamps for the year, and the face value of $200. The face value is what makes this coin legal tender so there are no taxes, tariffs, or customs charged on this coin. It also means this coin will always be worth at least $200 CAD, which is nice to know in case gold ever falls below $200/oz. Haha, yeah right. 😛
Each 2014 Canadian Gold Howling Wolf coin comes sealed in an uncirculated assay card, signed by the chief assayer, which is basically a quality assurance expert who makes sure each coin meets the highest standard of purity and quality. 😀
Personally I’m going to hang on to this coin and maybe give it away on this blog some day. However if you want to make some quick and easy money, you can try to sell this coin on eBay for a premium. 🙂 Below is a step by step tutorial for anyone who might be interested.
How to Make Money From this Coin
We’ve already went over where to buy the coin. You can Google “bullion dealer in (your city’s name.)” to get started. 🙂 The price of gold is constantly fluctuating but as of this post gold is currently at $1350/oz CAD ($1200/oz USD.) With a slight premium the Howling Wolf coin can be found for about $1,400 CAD each. 🙂 Next, sign up for an eBay account if you don’t already have one, and list the coin on it for $1,700 CAD, or whatever the equivalent USD amount is. According to previous listings that sold on eBay, buyers are willing to pay about $1,700 CAD for this coin. 😀 The last one that was sold actually went for $1,725. And at the time of that transaction the spot price of gold was about the same as it is today.
So to summarize.
- Step 1: Buy 99.999% howling wolf gold coin for $1400 from bullion dealer
- Step 2: Sell it on eBay for $1700
- Step 3: Make $300 in profit before fees 😀
<edit> Thanks to some smart commentators below, it’s estimated that about $200 in fees will go to eBay and PayPal after selling the coin for $1700. This means the final profit on this coin flip 😀 will be roughly $100. </edit>
Of course you can also use leverage to potentially increase your investment gains. For example, borrow $7,000 on a bank loan or line of credit. Buy 5 of these coins at $1400 each. Sell all 5 coins on eBay individually. Thus, make $500 in profit before interest expense. That’s a lot of profit without even using any of your own money. Reminds me of my first swing trade lol.
However there are risks to this bullion arbitrage plan. Since now that I have revealed this secret, the eBay market will probably get flooded with 1 oz gold howling wolf coins. 😕 If that’s the case then you’d need to drop your price down to about $1650 in order to make a quick sell. But at least you’d still make a profit. Another risk is eBay fraud so make sure you’re dealing with a reputable buyer. The price of gold could also fall dramatically after you buy the coin and are not able to liquidate it on eBay without taking a loss. 🙁 There’s also the small possibility where you can’t even get rid of the coin at all. However personally I don’t think owning some physical gold bullion for awhile is necessarily a bad thing. 🙂
Random Useless Fact:
In the entire written history of Canada, there is not a single incident of a person being killed by a wolf.