What is a bullion coin? | The Royal Mint (2024)

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All information contained on or available through this website is for general information purposes only and does not constitute investment advice. Please note that certain products, storage and delivery services will be dependent on the type of account you hold. Bullion markets can be volatile and the value of Bullion may fluctuate depending on the market value of precious metals. As such, investments in Bullion involve a degree of risk, which may make them unsuitable for certain persons. Before making any investment decision, you may wish to seek advice from your financial, legal, tax and accounting advisers. You should carefully consider the risks associated with investing in Bullion, taking into account your own individual financial needs and circ*mstances. Investments in Bullion should only be made as part of a diversified investment portfolio and investment advice should be sought before any investment is made. The historic financial performance of Bullion is not indicative of and does not guarantee future financial performance. For further information please read our Investment Principles

* Bullion product prices displayed include the precious metal price and any applicable premium. Any promotions or discounts are applied to the premium above the precious metal price only and not on the metal price itself.

What is a bullion coin? | The Royal Mint (2024)

FAQs

What is a bullion coin? | The Royal Mint? ›

A bullion coin

bullion coin
A bullion coin (also known as a specie) is a coin struck from highly refined precious metal (bullion) and kept as a store of value or an investment rather than used in day-to-day commerce. A bullion coin is distinguished by its weight (or mass) and fineness on the coin.
https://en.wikipedia.org › wiki › Bullion_coin
is made from precious metals that are sold at a premium over the precious metal spot price. Bullion coins are usually made from gold and silver, and may also be available in platinum and palladium.

What is the difference between a bullion coin and a regular coin? ›

There are two types of coins available, bullion and numismatic. Bullion coins are acquired for their precious metal content only and are often available for much less. Numismatic coins may or may not have as much inherent value, and are often sought for their rarity.

What is the purpose of a bullion coin? ›

Bullion coins are physical coins made of precious metals. The most common types are made of gold and silver, although platinum and palladium are also sometimes used. While some investors purchase bullion coins as gifts or collectible items, others invest in them for their perceived value as a hedge against inflation.

Can you spend a bullion coin? ›

All American Eagle Bullion Coins are legal tender coins. Although their face value is largely symbolic, it provides proof of their authenticity as official U.S. coinage.

How can you tell if a coin is bullion? ›

Most bullion coins and bars are pure 999.9 gold, and should therefore not be magnetic. There are some coins however - such as the gold Sovereign - that have a purity of 916.7 per tradition. The introduction of other metals in these coins could mean the coin is magnetic.

Are bullion coins worth anything? ›

Although many gold coins are assigned nominal face values, in reality they are worth considerably more in terms of their fine gold content. The real value of a gold bullion coin is therefore calculated by multiplying its pure gold content by the current gold spot price.

Are bullion coins a good investment? ›

Finally, buying physical gold bars and coins might be wise if you plan to hold onto it for a while. Unlike stocks and many other investments, it generally won't deliver much in short-term returns.

What are the disadvantages of bullion? ›

Investing in gold comes with several disadvantages. Physical gold does not generate passive income or dividends, leading investors to rely solely on price appreciation. Additionally, owning gold incurs storage and insurance costs.

Is it better to own gold coins or bullion? ›

First-Time Investors

Additionally, if you have a larger budget and secure storage options, gold bars offer a wide range of sizes to suit your investment needs. On the other hand, if you are interested in the potential collectability and numismatic value of gold, gold coins may be a better choice.

Can you sell bullion coins? ›

If you have gold, silver or platinum bullion coins and bars to sell, The Royal Mint will offer you a competitive buy back rate based on live gold, silver or platinum prices.

Are bullion coins taxable? ›

The IRS considers non-legal tender gold bars and coins to be 'collectibles' for income tax purposes. If you hold the gold for less than 12 months then any gains are taxed as 'ordinary income', if you sell after a year then any profits are taxed as 'long-term capital gains'.

Can you touch bullion coins? ›

The best way to protect your gold coins or bars is to not handle them unless it's necessary, but sometimes you might want or need to. Gold is delicate, so to prevent your bullion from being damaged by a hard surface when handling it, place it on a clean towel or cloth on a flat surface.

Is it OK to clean bullion coins? ›

Cleaning old coins might seem like a good way to revitalise the appearance of a treasured item, but could in fact reduce a coin's value significantly, and should be avoided.

Are bullion coins real? ›

Bullion coins are coins whose weight, content and purity are guaranteed by the United States government. They can also be included in an IRA.

Why do bullion coins have a face value? ›

These low face values help ensure non-circulating bullion is used for its intended purpose as an investment or a collectible and never treated like an ordinary coin used to buy goods and services.

How do you buy bullion coins? ›

Mint bullion coins are widely available both online and physically from a variety of coin and precious metal dealers. To purchase, the U.S. Mint recommends using your preferred internet search engine to find a local or national coin and precious metal dealer that fits your needs.

Which is better bullion or coins? ›

Ideal for Long-Term Investment

If you consider to hold physical gold for a long period of time without any intention to sell part of your investment overtime, gold bars will be the best option for you. They will cost you less per gram compared to gold coins. This is because of their lower premium, as explained below.

Is it better to buy silver coins or bullion? ›

Pricing and Value

Generally, silver bullion has a lower premium over the spot price of silver than silver coins. The bonus is the additional cost you pay above the metal's intrinsic value. Collectible silver coins for sale often have a higher premium due to their rarity, historical significance, and numismatic value.

What is the difference between bullion and collectible coins? ›

What we often refer to as 'numismatic' pieces are crafted for collecting, whereas our 'bullion' coins are manufactured with investing in mind. Both numismatic and bullion coins are made from exactly the same purity of metal – 9999 gold, 9999 silver, or 9995 platinum. In many cases, they even share the same designs.

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