Bullion Coins Vs Collectible Coins
WHAT ARE BULLION COINS?
Bullion produced specifically for investment purposes comes in three distinct forms: bars, rounds and coins. Worldwide, the most popular form for private investors is bullion coins. This type of coin is different from regular currency because it is not meant for circulation as payment for goods in stores.
Among the reasons for the attractiveness of the bullion coin is the portability. Because each coin is manufactured to a standard weight, Gold, Silver or Platinum bullion can easily be stored, transported or exchanged for currency. The accepted standardization of purity is also attractive to investors.
Some of the most popular Gold bullion coins in the world are the American Eagle, South African Krugerrand, Canadian Maple Leaf and Austrian Philharmonic. Because national governments issue bullion coins struck at official mints, there is a level of comfort and security about the origin upon purchase. They also feature the year the coin was struck, beneficial for tracking the source of the investment and helping with future authentication.
WHAT MAKES CERTAIN COINS COLLECTIBLE?
Certain types of historical coinage, primarily Gold coins, are traded with regularity in the investment world. Some of these coin series include the British Sovereign, the Swiss 20 Franc and the German 20 Mark. For mintage years that date back to World War I and prior, many European coins have a value slightly higher than modern bullion coins.
BULLION VS. COLLECTIBLE COINS
Precious Metals of any kind have proven to be an essential investment commodity. Both coins share the distinction of being commodities that are collected and stored, rather than consumed.