Gold and silver are two of the most popular precious metals, though gold bullion coins typically offer the highest value.

Bullion coins’ most popular types of precious metals include gold, silver, platinum, and palladium. Types of Bullion CoinsĪside from gold bullion coins, various types of bullion exist.

In 1974, the United States legalized the ownership of physical gold for all purposes, not just rare and unusual collectibles, allowing modern investors to buy gold, wait for the value to increase, then make money by selling. While the standard coins you use in a grocery store may not be bullion, you can still invest in the tangible asset for various purposes, like hedging against inflation. Before the Coinage Act of 1965, dimes, quarters, and half dollars contained 90 percent silver, though the United States reduced the content to 40 percent following the act. The Coinage Act of 1873 allowed people to use bullion currency up to $5, while the Coinage Act of 1965 eliminated silver bullion coins from currency circulations. The United States passed numerous coinage acts, revising the usage of bullion as currency. Trade silver dollar created between 18 was intended for use in the China market, though it became traded worldwide. History of Bullion Coinsīullion coins have a history of being used as legal tender for currency during different periods. Gold bars, or ingots, typically come at much higher price points due to their increased weight. Each bullion coin also includes a stamp showing the mint that produced it.įor example, gold American Eagles from the United States Mint will have the one troy-ounce weight stamp, mint authorization, and purity percentage printed on each bullion coin.īullion can come in forms other than coins, such as large gold bullion bars and rounds. The issuing government mints, central banks, or other facilities must stamp the official gold or silver content on the coin’s surface. Characteristics of Bullion CoinsĪ coin must have a melt value (referring to its purity) of at least 90 percent to qualify as bullion. Also, because many bullion coins are available in various sizes, they’re often the most cost-efficient way for beginner investors to join the precious metals investment world. Since precious metals do not always experience the same price volatility as many other asset classes, like stocks or cryptocurrencies, bullion investors may enjoy some stability. In contrast, proof coins, numismatic coins, and other collectible coins often include additional charges.īecause of the high purity of bullion coins, their prices typically fluctuate like their associated precious metal. You can typically purchase bullion coins for a small premium over the market face value of the precious metal. Bullion coins do not need to be rare or collectible rather, they must have a specific purity or fineness level. For example, rare coins, like the Saint-Gaudens double eagle, hold value because of how rare they are, not because of their exceptionally high metal content. To qualify as a bullion coin, it must meet a specific melt value, which we will cover below.Ĭonversely, numismatic coins obtain their value by being rare. Government-issued bullion coins are the most widely available type you will come across, though you can also buy bullion from private reputable dealers, approved banks, and brokerage firms.īullion coins have intrinsic value due to their precious metal content. What Are Bullion Coins?īullion coins are high-grade, minted precious metal coins typically used for investment. Below, we discuss bullion, how it compares to numismatic values, how bullion markets work, which popular bullion products you can buy, and more. Understanding how bullion compares to numismatic coins can help you make the right portfolio decisions for your financial goals. If you’re interested in investing in gold, silver, platinum, and palladium, you’ve likely come across the term “bullion.” Bullion is a blanket term used by precious metals investors, dealers, sellers, government entities, and more.

Coinage act of 1873