Bullion Coins vs. Numismatic Coins

With the price of gold and silver steadily rising over the last year, and apparently headed even higher, many people are looking to get their hands on the precious metals. One of the ways to participate in the precious metals market is to purchase gold coins and silver coins. There are two types of coins to consider – bullion coins and numismatic coins.

Gold and Silver Coins

Many countries all around the world mint both gold coins and silver coins. They are usually assigned a face value and marked with the content of gold or silver and the purity of that content. Some examples are the U.S. American Eagle, the Canadian Maple Leaf and the South African Kruggerand.

Spot Price of Gold or Silver

The Spot Price is also known as the Market Price. It is the current price for the intrinsic value of an ounce of gold or silver. Whether it is a gold coin, a gold bar or gold jewelry, it has the same spot price based on weight and purity. The price is determined by a very fluid market consisting of willing buyers and sellers of each metal. The price can change minute by minute as demand either increases or decreases. Major national and world economic and political news and events can cause the Spot Price to move rather quickly, either up or down.

Bullion Coins

These coins are for investors or speculators who are strictly interested in obtaining gold or silver for its potential price appreciation due to market conditions. The coins are readily available through coin dealers and numerous companies that deal in precious metals. Bullion coins are valued strictly on the amount of gold or silver they contain. Generally, you pay a slight premium to the Spot Price when you buy them and receive the Spot Price when you sell them.

Numismatic Coins

These coins are valued both for their silver or gold content and also for their condition and rarity. They are not nearly as easy to buy or sell as bullion, because there is a much smaller market of numismatic coin collectors compared to those that simply want to buy and sell gold and silver quickly for profit. A rare coin in pristine, mint condition can be worth many times the spot price of the precious metal. While most numismatic coins are kept as part of a collection, they can also be a great investment. Their potential for price appreciation based on both the rise in the price of the precious metal as well as their numismatic value can make for impressive profits when it comes time to sell.

If curious to know how much gold you’ll need in case of a currency crash or emergency click the link below

How Much Silver Should I Own In Case of Emergency

Please leave your comments below