When starting out with with coin collecting a question that usually arise is what is the difference between bullion and proof coins? This might seem like an easy question to answer, but in the answer itself lies new questions and makes a person feel overwhelmed by all the information. In this article I try touch of on some of the concepts.
Bullion is gold or silver that must at least be 99.5% pure and is in the form of bars or ingots.
Bullion coins are also often referred to as investment coins which are minted after the 1800's. They have a purity of not less than 900 thousandths. Bullion coins can bartered with to settle a debt, that is you are allowed to pay with it this is often referred as legal tender
Bullion coins are usually struck from precious metals keeping the initial metal value. The value of the coins is based on the metal bullion price, the price of these metals fluctuates daily. Bullion coins are minted for investment purposes for people who want to invest in gold, silver and platinum(US mint).
Some well known Bullion coins:
- South African Krugerrand
- American Gold Eagle
- Canadian Maple leaf
- Australian Gold Nugget
When buying a bullion coin one must be certain of the seller, as foreign governments can also mint bullion coins. When you look to invest in bullion coins ask the following questions:
- What is the coin's melt value, this would be the value of the coin if it was to be melted and sold.
- Safe keeping is important to keep in mind, keeping this at your home may pose risk to you and your family. Consult with a dealer or a bank about safe keeping options.
- Be aware of current gold/silver prices. Its always good to stay informed about current trends in metals market.
Bullion Coins have a lot of properties in which we can explore. Each bullion coin has its own unique design that can talk to a person's national pride. Whether you like the free springbok which gallops through the South African plains or want to be a tourist that explores another nation's history. These coins when held gives one great satisfaction, acknowledging that we can take something from the ground and make it anew, into something that has value globally.
I hope that you have enjoyed this introduction into bullion coins. Please leave a comment and let me know what you think or any other topics you wish for me to cover.