Last updated on April 15th, 2020 at 06:45 am
Last Updated on April 15, 2020 Posted by Colonial Acres Coins
You may have heard the word bullion a thousand times, but still aren’t sure what it really means. What is a bullion coin? Bullion means your gold or silver bars, as well as coins have at least 95% purity of precious metal content. Bullion coins, however, have the benchmark of at least 90% purity and have less value compared to the gold and silver bars. Even so, bullion coins have been a reliable form of investment since they were first issued.
Gold has been used as superior form of commodity since ancient times. It is believed that the Persian coins called “darics” were the first bullion coins. Persia held most of the gold in the world in 546 to 334 B.C. After that, Greeks were known to make their own coins, although this time they used silver over gold. Gold was used only when silver sources were depleted.
Until now, gold and silver coins are the primary bullion coins in the coin collecting industry. Bankers and keen investors collect bullion coins primarily for financial stability and investment. Unlike numismatic coins, bullion coins are valued exactly for the content of the coin, specifically for the mass and the purity of the precious metal. Numismatic coins are collectible items, meaning the value depends primarily on rarity and demand. Bullion coins are a more stable form of investment in case of economic decline where your paper money and bills depreciate in value. Coin values of bullion coins depend mainly on the gold and silver market trends.
The most famous bullion coins today are the South African Kruggerand, Canadian Maple and the U.S. Gold Eagle Coins. The American Gold Eagle Coins are the most popular to investors worldwide, and are made in 22 karat gold, which is about 91.67% in purity.
As most subjects tied to finance, engaging in bullion collecting and selling requires a hefty amount of research and awareness. Unlike other forms of investment, however, gold and silver coin values have been seen to a steady rise for the past 10 years. This further encourages investors to choose bullion over circulation coins.
Coin collecting differs from person to person. One may be inclined more to collectible coins like numismatic coins, while others seek to collect as a form of investment and business. Either way, it requires effort and time, as well as a capital. Coin collecting rewards both in investment and leisurely fun as a hobby if done right. Colonial Acres Coins offer a wide variety of coins, from numismatic, commemorative to bullion coins. Whatever your goal in coin collecting, Colonial Acres Coins is the helping hand you need.