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What is a bullion coin? Everything you need to know

Exploring the world of bullion coins—from precious metals to investment potential.

What is a bullion coin? Everything you need to know

Wednesday May 17, 2023,

5 min Read

Bullion is the most popular type of packaging for precious metals, with weight being the key factor in determining its value. Gold is commonly depicted in bars and ingots, although bullion also comes in various forms. Nevertheless, high-quality delivery bars remain the most prevalent form of bullion. Additionally, rounds and coins are also considered forms of bullion.

What exactly is a bullion coin?

Bullion currency coins are primarily made for investors who prefer smaller denominations of precious metals. The value of these coins is determined solely by the amount of precious metal present. Some mints produce bullion coins with low precious metal content, reducing their value.

Compared to numismatic items, the selling price of bullion coins is generally lower than the metal's market price. These coins are available in various sizes, ranging from tenths of an ounce to half an ounce.

Some examples of classic bullion currency designs are the Chinese Panda, American Buffalo, and South African Krugerrand. Their precious metal content significantly influences the value, collector value, and rarity of physical gold coins.

The American Eagle Coins series is a popular choice among investors, available in four sizes from the United States Mint. These coins are guaranteed by the US government to weigh 999 fine precious metals at their stated weights. Over 400 million American Eagle Coins have been produced.

Investing in precious metals or adding a silver or gold coin to your collection is an easy way to increase its value.

Are bullion coin investments beneficial?

Contrary to popular belief, the value of gold can fluctuate due to market demand and other factors. While it may not be considered an investment, owning gold bullion can act as a valuable store of value and an effective hedge against inflation. Although gold prices can change, their intrinsic value typically remains more stable than the current economic system.

By physically possessing gold, individuals can protect themselves from the negative effects of market changes and inflation on their finances. Including gold in a diversified investment portfolio can also help mitigate the impact of market movements.

Physical gold bars, bullion coins, and other metals can be purchased from online bullion dealers open 24/7. However, smaller coin stores may not offer the same selection as larger dealers. It is important to weigh the convenience of purchasing from a local dealer against the cost of choosing a larger dealer.

What is the best bullion to put resources into?

Gold is a valuable and notable metal highly sought-after as an investment. It is a unique metal that is durable, can be shaped, and conducts heat and electricity well. While it has some industrial applications, its primary uses are in producing jewellery and as a currency.

The US Mint has been producing Silver Bullion items since 1986. The American Silver Eagle is one of the most famous modern coins and is considered to be one of the best silver investments.

The Royal Mint in the UK produces the British Gold Britannia, which was created by the team behind the highly secure £1 coin. The Britannia 2022 Bullion Coin is a popular choice among investors.

Gold sovereign coins have been minted for over 500 years. The coins are struck in 22-carat gold bullion and guaranteed to five decimal places, making them highly sought-after items.

The Royal Tudor Beasts collection includes the majestic and powerful Lion of England, which guards Hampton Court Palace's moat. One ounce of 999.9 fine gold, this collectible piece is highly prized by collectors.

The Krugerrand from South Africa has long been a popular choice among gold investors. The South African coin features the springbok antelope, making it easy to identify.

The Canadian Gold Maple Leaf is a well-known Gold bullion coin with a unique and recognizable design. The coin features a .9999 fine gold maple leaf on its surface, with meticulous detailing.

Why buy from BOLD?

Including precious metals as a part of an investment portfolio is a great way to solidify your portfolio. There are many online dealers, but one should always go with a trusted dealer with the best prices, the highest quality, and customer service. BOLD Precious Metals has consistently low prices, availability, and great customer service. Why shop anywhere else?

BOLD is proud to be affiliated with the best bullion-related service providers in the world, including,

  • The Jewelers Vigilance Committee (JVC), focus is to educate and encourage legal compliance through a greater understanding of laws and regulations that apply to the jewellery industry. 
  • Numismatic Guaranty Company (NGC) and Professional Coin Grading Service (PCGS) are two of the world’s largest and most trusted third-party coin grading service providers. 
  • CyberSource and PayPal are single-platform solutions that accept payment worldwide that are secured by industry-standard automated fraud protection.     

BOLD has provided customers with an easy purchase experience they can trust. We pride ourselves on providing 100% customer satisfaction and appreciate every customer review.