Canadian Coins for Sale and Past Auction Prices

History of Canadian Coins

Indigenous and Early European Influence

Prior to European contact, Indigenous peoples in what is now Canada used trade systems without formal currency, relying instead on bartering goods such as furs, shells (including wampum), and other items of value. Coins first began circulating in Canada during the early 16th century when European explorers, particularly the French and British, arrived and established settlements. French coins, such as the Louis d'Or, and British coins began to enter circulation, reflecting the growing economic influence of the colonial powers.

New France and Early British Colonial Coinage

With the foundation of Quebec City in 1608, French settlement and trade expanded. The early French colonists bartered goods and used French coins. The basic unit of currency was the denier or penny. Twelve deniers made a sol or sou, and twenty sols made a livre of New France. However, the chronic shortage of hard currency was a recurring problem. Even though the French government sent shipments of silver coins from France, the coins tended to be taken out of circulation by merchants who used them to pay their taxes and buy necessities from Europe. Hard currency was often hoarded for personal financial security, as economic certainty in the distant colonies was far from assured. To deal with the shortage, the French government authorized the use of coins limited to New France, the monnoye du pays. These coins had an assigned value higher than coins used in France (the monnoye de France) but the New France coinage was not successful because it had no value outside the colony. By 1685, the coin shortage had grown so severe that colonial authorities resorted to using playing cards as currency, the first issue of paper money by a Western government. Although in the form of a promissory note, namely a promise by the colonial government to pay the soldiers when more coinage was available, the playing cards began to circulate as a medium of exchange.

After Great Britain took control of New France in 1763, British currency began to dominate. Despite this, the chronic shortage of currency continued, and coins from other countries circulated widely. Spanish silver coins in particular were popular due to their international recognition. Colonial governments could be creative in “domesticating” foreign currencies: In 1808, officials in Prince Edward Island punched out the centres of Spanish 8 Reale coins, creating the “holey dollar”. The two pieces were each used as coins, one shilling for the core and five shillings for the outer ring. Colonial coinage, and later Federal coinage of the United States was used interchangeably and became increasingly important until the development of a unified currency system.

Pre-Confederation Currency

As British North America evolved, various colonies began to issue their own coins. In the 1820s, the first official Canadian tokens were minted by the Bank of Montreal and the Bank of Upper Canada, serving as a stopgap for the lack of official coinage. These tokens bore images such as the Habitant (a French-Canadian farmer) and the symbol of St. George and the Dragon.

In 1858, the Province of Canada (modern-day Ontario and Quebec) issued its first official decimal coinage, featuring Queen Victoria on the obverse. The government adopted the dollar as its currency unit, aligning it with the system already in place in the United States. Denominations were issued in 1 cent, 5 cents, 10 cents, and a one-year-type 20 cent piece. The 1 cent was issued again in 1859 but was largely unpopular due to its extremely light weight when compared to its American counterpart, and the coins had to be discounted by around 20% to get them into circulation.

Other colonies that make up present-day Canada soon followed suit in issuing decimal coinage: New Brunswick and Nova Scotia starting in 1861, Newfoundland in 1865, and Prince Edward Island in 1871.

Post-Confederation Canadian Coinage

After Canadian Confederation in 1867, the newly established Dominion of Canada sought to create a unified currency system across the country. The first official Canadian coins under the new government were minted in 1870, including 5, 10, 25, and 50 cent coins. All of these early coins prominently featured Queen Victoria, the reigning British monarch, on the obverse, a tradition that continues to this day.

Canadian coins were struck by the Royal Mint in London, and on occasion at the Heaton Mint in Birmingham, until 1908. That year, the Ottawa branch of the Royal Mint was established, creating the Royal Canadian Mint and finally allowing Canada to mint its own coins domestically. Gold coins were introduced in 1912 with the issue of $5 and $10 pieces, reflecting Canada's status as a major gold producer in the wake of the Klondike gold rush. However, these coins were short-lived and were discontinued after the outbreak of the First World War in 1914.

The Great Recoinage and World Wars

Canadian coinage underwent several changes through the first half of the 20th century, particularly due to economic ramifications of the two World Wars. The silver content in Canadian coins was reduced from 92.5% to 80% in 1920, with the silver 5 cent coin being discontinued altogether in 1921 and replaced with a larger coin made of nickel. During World War II and as a measure to conserve nickel for the war effort, the composition of the 5 cent coins was changed again, first to tombac and eventually to chrome-plated steel. The iconic “Victory Nickel” was minted from 1943 to 1945, featuring a large “V” for victory on the reverse and bearing the message “We Win When We Work Willingly” in Morse code along the rim.

Modern Canadian Coinage

The second half of the 20th century saw significant changes in Canadian currency. In 1967, the year of Canada's centennial, commemorative coins were issued to mark the occasion, each featuring a different animal. The following year, silver as a component in circulating coinage was eliminated for good. In 1987, the $1 coin known as the “Loonie,” was introduced, featuring a loon on the reverse. This was followed by the introduction of the $2 coin, or “Toonie,” in 1996, which featured a polar bear. These coins replaced the 1 and 2 dollar bill respectively, as well as a dollar coin made out of nickel, which had never managed to gain popular support over its paper counterpart.

In recent decades, Canada has become known for its innovative coin designs, including glow-in-the-dark and holographic elements, as well as colored coins introduced to circulation. Canadian bullion coins, particularly those in gold known as “Maple Leafs”, continue to remain one of the world's most popular bullion series.