Discover How to estimate the value of a bullion coin? Curiosities and details about investment coins.
Bullion coins is the term applied to coins of precious metals such as gold, silver or platinum, minted primarily for investment purposes.
These are issued by governments or financial institutions, and are traded on the basis of their precious metal content, unlike common coins, which are traded at face value.
Value of a Bullion Coin.
Bullion coins, although they can be used as a medium of exchange, are not usually the usual, they are actually bought and sold for the purpose of making investments in precious metals.
Its value is based on the current price of the metal that conforms it, so it does not have a fixed value, but can fluctuate depending on market conditions.
In general, buying bullion coins is considered a safe, long-term investment because they are durable and secure due to the intrinsic value of the precious metal.
How is its value estimated?
It is subject to the value of the current price of the precious metal it contains, e.g….
If the price of gold today is €1,848.48, this means that a bullion coin containing one troy ounce of fine gold will have a value of €1,848.48.
The weight and purity of the coin are considered to estimate the value based on the daily rate of the metal that makes up the coin.
However, it should be noted that some bullion coins may have extra collectible value, associated with their rarity, condition and other factors.
Ultimately, the value of a bullion coin can vary according to its precious metal and in certain cases its collectible value.
The First Known Bullion Coin
Today, there are numerous investment coins of different metals, some of them more famous than others.
But few people know that they have been with us for many centuries, in fact, the first bullion coin dates back to the third century B.C. and its issuance is due to the Romans.
The first bullion coin, christened “Aureus”, was characterized by being minted in gold and was recognized for its high purity. It contained 8 grams of fine gold, and was actually used as an exchange currency for commercial activities.
The Byzantine Empire also issued gold coins, as did the European kingdoms during the Middle Ages and the Renaissance.
Why are they called Bullion?
The word “bullion” derives from the Old French “boulle”, meaning “metal ingot”.
In the gold trading market, the term “bullion” has become common, used to refer to precious metals in the form of ingots, bars or coins intended as precious metal investment objects.
Therefore, coins of gold, silver or other valuable metals intended for investment are called “bullion”.
They share a high metal content and are traded primarily for the intrinsic value of their constituent element, rather than their face value.
Recommendations when buying and selling Bullion Coins.
When trading investment currencies it is important to follow some recommendations:
Before buying any coin, you should first research the market and current prices of the precious metal you wish to purchase.
In this way you can have a true picture of prices and thus avoid paying more or selling for less than their real value.
2. Go to places you trust.
To make any investment related to gold, the best option is to go to a reputable gold-buying store.
A great idea is to look at the reviews and online reputation before arranging the negotiation.
Details such as weight and purity should be verified, and the coin should be compared with authentic images that can be easily obtained from official websites.
4. Check the quality:
This point is more associated with coins that have a collectible value because their ability to retain their value in the long term depends on it.
In that sense, buying high quality bullion coins will increase their value in the long run.
5. Evaluation of additional costs.
Some purchases involve a number of additional costs, such as: shipping and handling and taxes.
Which Bullion Coins to Buy?
There is a wide catalog of bullion coins minted by different countries, with different denominations, among some of the most popular are the following:
American Eagle (United States).
Issued by the United States Mint and available in gold, silver, platinum and palladium, it is a favorite among precious metals investors in the United States.
Maple Leaf (Canada).
The Royal Canadian Mint mints this bullion in gold, silver and platinum.
Krugerrand (South Africa).
The Krugerrand is one of the oldest bullion coins and also a bit controversial because of its history, it is available in gold.
It is a bullion coin minted by the Austrian Mint, it has gold, silver and platinum versions and stands out for its designs inspired by classical music.
Britannia (United Kingdom)
The Britannia issued by Royal Mint of the United Kingdom is available in gold, silver and platinum and its designs are based on the image of Britannia, a typical symbol of the United Kingdom.
These are just a few investment currencies, but it is a long list that also includes: the Panda (China), Kangaroo (Australia), Libertad (Mexico), among others.
Each of these coins has a unique design and value, if you are interested in learning more about them, don’t forget to check out our blog.
Do you want to buy or sell gold and silver coins? Contact us.