What is Bullion?

Bullion, made of precious metals such as Gold, Silver, Platinum and Palladium, is a category of investment that covers coins, bars, and rounds. Their value is primarily dependent upon the quantity of the metal in the coin and are produced in large qualities. This means that they carry a very small premium above their cost, when compared to other categories we offer. As with all precious metal investments, the more of one item there is on the market, the lower the price. Typically, Bullion bars are the most well known in this category and are sold in sizes ranging from 1 gram to 400 ounces. However, when talking about Bullion coins, the most actively traded ones today are the Canadian Gold Maple Leaf, American Eagle, and American Buffalo. These three Bullion coins are so popular they typically have the best bid/ask prices over other items such as bars. Since the Bullion coin prices are so closely tied to the fluctuations in the price of metals, these are ideal for a short investment with the potential for a good return.

All Bullion coins are produced from government mints and are produced in large quantities. Sovereign governments such as the United States and Canada also give their coins a denomination in common amounts like, $5, $20 and $50 when minted. This way, the government minting the piece can call it a ‘coin’. Usually, the Gold, Silver, Platinum or Palladium within each coin is worth far more than its face value. For example, a $50 Gold coin would be worth far more than its face value because it usually contains 1 oz of Gold. A $1 Silver coin is normally worth more than its face value of $1 because it may have over 1 oz of Silver.

Bullion products manufactured by private mints and banks are not referred to as coins. Only a governmental body has the authority to mint coins and give them a denomination. Private mints and banks refer to their products as trade units, rounds, bars or ingots.

Some Bullion coins are referred to as semi-numismatics. This means that even if a coin was minted by a government, either recently, or struck over a 100 years ago, that it can carry an additional value. This is because their price is based on of the value of the precious metal contained in the coin plus an additional premium of roughly 5-15%. The premium is determined by several factors that include investor/collector demand, tax advantages, special mint striking, limited issues and more. We offer them to investors looking for higher profit potential beyond the common Bullion, and recommend that they be held for at least six months.

Semi-numismatic coins vary in size and quality. However, one great advantage is that since most of the Gold coins were produced before 1933, they are considered ‘collectable’ and have certain privacy advantages over modern made Bullion coins. To learn more about this, speak to one of our Mint State Gold representatives or your financial advisor. Some best selling examples of these coins include various grades of the French 20 Franc Gold Rooster, British Gold Sovereign, Swiss Gold Helvetia, French Gold Angel, and French Gold Napoleon.

Typically the modern coins that are semi-numismatic sold in this category are of higher quality than a commonly produced coin. An example of modern semi-numismatic coins is proof coins. A Proof coin is made of Gold, Silver, or Platinum, typically minted by a government as well, but when the coin is forged the die striking the coin has a special luster. This luster gives Proof coins a beautiful reflective, mirror-like surface (click here to learn more about how a coin is made). These coins sometimes come in protective holders certified by a third party grading service as to their grade and authenticity. Others come in a luxurious velvet case straight from the mint, numbered and certified. Proof coins are similar to Bullion coins because their value is based more heavily on the metal content. Typically, Bullion Plus coin retains a higher value than the Bullion mostly because of demand from investors who want beautiful lustrous coins to keep for retirement or pass on to their heirs. When you put a Proof coin and a Classic Bullion coin side by side – the artful shine and beauty of the Proof will leave you breathless. Mint State Gold, presented by Stuppler, is proud to offer to our clients Proof Coins individually, or in sets of different sizes and metals.

Mint State Gold proudly offers Bullion coins, bars, trade units and ingots to our clients. Bullion is recommended for short-term investment and fast liquidity. To learn more about investing in Bullion coins, bars, ingot and the rest, please contact one of our representatives today.