TRADERS NOTES Olympic Edition

Going for gold!

Of course, the ultimate achievement for an Olympic athlete is the gold medal, and the worldwide recognition and national pride that follow. And while second place is still an admirable finish, a closer look at the prizes beg the question - should the podium only have two places? Based on the composition of Olympic medals in the upcoming London games, a first place finish is twice as valuable as second place, according to the 400g medals awarded. At current prices, a gold medal is valued at roughly $600, whereas a silver medal is closer to $325. The variation stems from a minor physical difference between the two Olympic medals. That is, the gold metal is actually 1.34% gold. Otherwise, the two top-honour medals are identical in composition: 92.5% silver and the remainder in copper. The loser on the podium, in terms of value, is the bronze medal, comprised of copper, tin and zinc, with an estimated value of a meagre $3.

OF RBC DOMINION SECURITIES

Global Futures & Commodity Specialists
2012 London Olympic Medals - Historical Value

The Ultimate Prize?

While as a society we tend to place a high value on athletic prowess, perhaps fittingly the ultimate gold medal has nothing to do with sporting achievement. Winners of the Nobel Prize receive, in addition to a rather large cash prize, a diploma, and an 18 carat green gold medal, comprised of 75% gold, 20% silver and 5% copper. And while it is less than half the size of an Olympic medal (175g), the value is a staggering $6,800, or over 11 gold medals. To put that in perspective, in Beijings 2008 Olympics, American swimmer Michael Phelps won an incredible 8 gold medals, setting the record for individual wins in one Olympics. Even combined with fellow Olympian, Jamaican sprinter Usain Bolt, who took home 3 gold medals himself, the two athletes gold medals combined would still fall short of one Nobel Prize. But dont weep for Phelpie - he parlayed those 8 gold medals into sponsorships and endorsements estimated at over $100 million. Hows that for leverage?!

Olympic Gold Medal Value - Histogram

$700.00 $600.00 $500.00 $400.00 $300.00 $200.00 $104.81 $100.00 $Sydney 2000 Athens 2004 Beijing 2008 London 2012 $147.33 $330.03 $602.10

An Olympic-sized bailout?
Greece is planning to send 107 athletes to this years games, but if theyd like a little help with their debt problem, maybe they should send a few more. Even if the London 2012 first place medals were comprised of pure gold, a clean sweep of all 512 available golds would net the troubled nation a little over 10.5 million dollars. To make good on their Olympic-sized debt, they would need to win every available gold medal for the next 31,000 Olympics. Unfortunately, they can only compete every 4 years. We wonder what nation will host the Olympics in the year 126012?

Enjoy the games!

Plaza Futures Group of RBC Dominion Securities Royal Bank Plaza, South Tower 200 Bay Street Suite 2500B, Toronto ON M5J 2J2 24-hour trading: 416-842-1100 Fax: 416-842-1130 Toll-free: 1-877-387-4901 Mexico toll-free: 001-800-514-0577 Email: plazafutures@rbc.com | www.plazafuturesgroup.com

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