A bullion coin is a high-purity coin made of precious metals (most commonly gold or silver) intended primarily as an investment.
Here’s a breakdown of what defines a bullion coin:
- High Purity: Bullion coins typically have a metal purity of 99.9% or higher, [according to Gainesville Coins].
- Valued by Weight and Fineness: Their value is derived mainly from the precious metal they contain, which fluctuates with market prices.
- Investment Grade: They are considered an investment vehicle for owning and investing in precious metal markets like gold, silver, platinum, and palladium.
- Minted by Governments or Private Mints: While government-issued bullion coins often have legal tender status, their face value is usually significantly less than their intrinsic metal value.
- Distinction from Numismatic Coins: Unlike numismatic coins which are valued for their rarity, age, condition, and historical significance, bullion coins are primarily about the metal content itself.
In essence, bullion coins offer a tangible way to invest in precious metals, providing a hedge against inflation and a means of portfolio diversification.
Are bullion coins worth anything?
Bullion coins are best-selling investment opportunities for investors who wish to truly own valuable metals. Unlike collectible coins, their value hinges on how much gold, silver, platinum, or palladium it is composed of instead of how rare they are.
What is the difference between a bullion coin and a regular coin?
Bullion coins are those which are valued based on their intrinsic metal content, while numismatic coins (in other words, collectible coins) are valued based on various intangible factors, such as age, rarity, design, and mint.
Can you spend bullion coins?
Thanks for asking. All American Eagle Bullion Coins are legal tender coins. Although their face value is largely symbolic, it provides proof of their authenticity as official U.S. coinage.