Difference Between Coins and Bullion
Collecting gold and silver coins and bullion can be a fascinating and potentially rewarding hobby. For someone new or unaware of the hobby, coins and bullion may seem synonymous, but that is not the case. Not all coins are created equal. Keep reading for a brief rundown on the differences between the various forms of coins and bullion.
Coins are issued by the government and have a value stamped onto them. However, there is no indication of the precious metal, weight, or purity. Examples of coins include pennies, nickels, and dimes, and coins in the United States generally feature the face of a former President on one side. Chances are you have some in your possession as you read this blog!
These are collectable coins that may have a numismatic premium that adds additional value based on age, condition, and rarity. The value of these coins is determined by supply and demand, particularly the grade that is available to be purchased by the public. Supply is determined by the mintage of the coin, and how many were taken out of circulation due to damage or wear.
Bullion is a pure or nearly pure refined precious metal with exact weight and purity stamped onto it by the company of origin and can be in bar or coin form. Its value is dependent primarily upon the precious metal content and tends to rise in value over the long term. You can buy bullion from precious metals dealers online or in person.
Monetized bullion is refined precious metal with exact weight and purity stamped onto it by the government or country of origin to be used as legal tender. It can also come in bar or coin form. The medium of exchange must have had a legal status equivalent to legal tender.
Whether you are collecting coins or making an investment in precious metal, be sure to do your research and do business with a reputable dealer. Precious Metals Refinery purchases and sells numismatic coins, as well as bullion. If you are looking to sell your coins or bullion, be sure to contact Precious Metals Refinery. We pay up to 40% more than our competition.