How are bullion coins different from numismatic coins?

Bullion coins distinguishes from numismatic coins due to various reasons that results in difference of their  price valuation as well. 


Difference among numismatic, semi-numismatic, and bullion coins:

What are Bullion coins?

Highly purified precious metals including silver, gold, platinum, and palladium are used to create bullion coins. The value of bullion, a precious metal, is determined simply by its weight and quality. Bullion is all about the quality of the metal, regardless of its form or size. Coins minted in the United States, Canada, South Africa, Austria, and the United Kingdom are some of the most well-known bullion coins. It is important to keep in mind that different bullion coins may contain various amounts of metal. For instance, the American Buffalo is 99.99 fine gold, whereas the American Eagle is 91.67% pure gold. The Eagle still includes 1 Troy ounce of gold because it weighs 33.931 grammes, or roughly 1.09 Troy ounces.

Bullion coins are issued by sovereign nations, have a legal tender value, and not currently intended for use as money, they might theoretically be used for transactions. The 24-karat Canadian Gold Maple Leaf coin, which was sold before the US Buffalo coin, was a particularly well-liked purchase.

What are numismatic coins? 

The study of paper money, coins, and medals is called numismatics (Latin: numisma, coin). The American Numismatic Association (ANA) states that numismatists are those who study money in all of its manifestations, frequently concentrating on certain subfields like coins, tokens, or paper money. In general, numismatic coins are those that are scarce, out of circulation, and, in the case of US coins, were struck prior to 1933.

The factors that determine each coin’s value are among the differences between numismatic and bullion coins. As we’ve seen, bullion coins are valued for their precious metal weight and composition, but numismatic coin prices also depend on elements including scarcity, historical significance, condition, and the current market for a certain coin. The most expensive numismatic and semi-numismatic coins have intrinsic metal values that are significantly greater than the spot price. The $20 double eagle gold coin from the United States is among the most well-known numismatic coins.

What are semi-numismatic coins?

Proof coins, specially minted coins created in small quantities by some of the most well-known mints and precious metals companies, might be considered semi-numismatic coins. Proof coins will feature a background made of highly polished mirror, with frosted finishes used to create a cameo-like effect on the design and considerably more attractive. In general, semi-numismatic coins can give an unique character and value to your portfolio. 

Which is preferable to buy, bullion coins or numismatics coins?

Depending on your objectives, you can decide which one to buy as it is frequently a good idea to diversify your holdings and to strengthen your portfolio. Contact our precious metals experts at AU Bullion if you’re considering to purchase precious metals, like gold, silver, or others.