Bullion coin

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A bullion coin is a coin struck from refined precious metal (bullion) and kept as a store of value or an investment rather than used in day-to-day commerce. [1] A bullion coin is distinguished by an explicit statement of weight (or mass) and fineness on the coin; this is because the weight and composition of coins intended for legal tender is specified in the coinage laws of the issuing nation, and therefore there is no need for an explicit statement on the coins themselves.

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The United Kingdom defines investment coins more specifically as coins that have been minted after 1800, have a purity of not less than 900 thousandths and are, or have been, legal tender in their country of origin. [2] Under United States law, "coins" that fail the last of these requirements are not coins at all, [3] and must be advertised as "rounds" instead.

Bullion coins sell for a premium over the market price of the metal on the commodities exchanges. [4] Reasons include their comparative small size and the costs associated with manufacture, storage and distribution. The amount of the premium varies depending on the coin's type and weight and the precious metal. The premium also is affected by prevailing demand. Depending on a number of factors, numismatic value may also have a direct influence on the price of a bullion coin.

The American Eagle and Canadian Maple Leaf series are the only coins available in gold, silver, platinum, and palladium. [5] [6]

See also

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Precious metal Rare, naturally occurring metallic chemical element of high economic and cultural value

Precious metals are rare, naturally occurring metallic chemical elements of high economic value. Chemically, the precious metals tend to be less reactive than most elements. They are usually ductile and have a high lustre. Historically, precious metals were important as currency but are now regarded mainly as investment and industrial raw materials. Gold, silver, platinum, and palladium each have an ISO 4217 currency code.

Bullion Gold, silver, or other precious metals in the form of bars or ingots

Bullion is non-ferrous metal that has been refined to a high standard of elemental purity. The term is ordinarily applied to bulk metal used in the production of coins and especially to precious metals such as gold and silver. It comes from the Anglo-Norman term for a melting-house where metal was refined, and earlier from French bouillon, "boiling". Although precious metal bullion is no longer used to make coins for general circulation, it continues to be held as an investment with a reputation for stability in periods of economic uncertainty. To assess the purity of gold bullion, the centuries-old technique of fire assay is still employed, together with modern spectroscopic instrumentation, to accurately determine its quality.

American Silver Eagle Silver bullion coin of the United States

The American Silver Eagle is the official silver bullion coin of the United States.

American Gold Eagle Gold bullion coin of the United States

The American Gold Eagle is an official gold bullion coin of the United States. Authorized under the Gold Bullion Coin Act of 1985, it was first released by the United States Mint in 1986. Because the term "eagle" also is the official United States designation for pre-1933 ten dollars gold coins, the weight of the bullion coin is typically used when describing American Gold Eagles to avoid confusion. This is particularly true with the 1/4-oz American Gold Eagle, which has a marked face value of ten dollars.

American Platinum Eagle Platinum bullion coin of the United States

The American Platinum Eagle is the official platinum bullion coin of the United States. In 1995, Director of the United States Mint Philip N. Diehl, American Numismatic Association President David L. Ganz, and Platinum Guild International Executive Director Jacques Luben began the legislative process of creating the Platinum Eagle. After over two years of work, the 99.95% fine platinum coins were released by the United States Mint in 110, 14, 12 and 1 troy oz denominations. In late 2008, the fractional denominations were discontinued, leaving only the one ounce denomination. The Platinum Eagle is authorized by the United States Congress, and is backed by the United States Mint for weight, content, and purity.

A gold bar, also called gold bullion or gold ingot, is a quantity of refined metallic gold of any shape that is made by a bar producer meeting standard conditions of manufacture, labeling, and record keeping. Larger gold bars that are produced by pouring the molten metal into molds are called ingots. Smaller bars may be manufactured by minting or stamping from appropriately rolled gold sheets. The standard gold bar held as gold reserves by central banks and traded among bullion dealers is the 400-troy-ounce Good Delivery gold bar. The kilobar, which is 1,000 grams in mass, and a 100 troy ounce gold bar are the bars that are more manageable and are used extensively for trading and investment. The premium on these bars when traded is very low over the spot value of the gold, making it ideal for small transfers between banks and traders. Most kilobars are flat, although some investors, particularly in Europe, prefer the brick shape. Asian markets differ in that they prefer gram gold bars as opposed to troy-ounce measurements. Popular sizes in the Asian region include 10 grams, 100 grams and 1,000 gram bars.

Platinum coin Form of currency

Platinum coins are a form of currency. Platinum has an international currency symbol under ISO 4217 of XPT. The issues of legitimate platinum coins were initiated by Spain in Spanish-colonized America in the 18th century and continued by the Russian Empire in the 19th century. As a form of currency, these coins proved to be impractical: platinum resembles many less expensive metals, and, unlike the more malleable and ductile silver and gold, it is very difficult to work. Several commemorative coin sets have been issued starting from 1978 and became popular among coin collectors. The major platinum bullion coins include the American Platinum Eagle, the Canadian Platinum Maple Leaf, the Australian Platinum Koala, the Isle of Man Noble, the Chinese Platinum Panda, the Austrian Vienna Philharmonic and several series by the Soviet Union and later by the Russian Federation.

Palladium coin

Palladium coins are a form of coinage made out of the rare silver-white transition metal palladium. Palladium is assigned the code XPD by ISO 4217. The first palladium coins were produced in 1966.

Silver as an investment Precious metal as a store of value

Silver may be used as an investment like other precious metals. It has been regarded as a form of money and store of value for more than 4,000 years, although it lost its role as legal tender in developed countries when the use of the silver standard came to a final end in 1935. Some countries mint bullion and collector coins, however, such as the American Silver Eagle with nominal face values. In 2009, the main demand for silver was for industrial applications (40%), jewellery, bullion coins, and exchange-traded products. In 2011, the global silver reserves amounted to 530,000 tonnes.

The Canadian Silver Maple Leaf is a silver bullion coin that is issued annually by the Government of Canada. It is produced by the Royal Canadian Mint.

The Canadian Platinum Maple Leaf is the official bullion platinum coin of Canada. First issued by the Royal Canadian Mint in 1988, it was available until 2002 in five different denominations, all of which are marked as containing .9995 pure platinum. The bullion coin was partly reintroduced in 2009 in the form of the 1 troy ounce denomination in .9999 purity, featuring a new portrait of Queen Elizabeth II on the obverse. The coins have legal tender status in Canada, but as is often the case with bullion coins, the face values of these coins is lower than the market price of the material they are made from.

Platinum as an investment

Platinum as an investment has a much shorter history in the financial sector than gold or silver, which were known to ancient civilizations. Experts posit that platinum is about 15–20 times scarcer than gold, on the basis of annual mine production. Since 2014, platinum rates have fallen significantly lower than gold rates. More than 75% of global platinum is mined in South Africa.

Gold coin Coin made from gold

A gold coin is a coin that is made mostly or entirely of gold. Most gold coins minted since 1800 are 90–92% gold, while most of today's gold bullion coins are pure gold, such as the Britannia, Canadian Maple Leaf, and American Buffalo. Alloyed gold coins, like the American Gold Eagle and South African Krugerrand, are typically 91.7% gold by weight, with the remainder being silver and copper.

A gold IRA or precious metals IRA is an Individual Retirement Account in which physical gold or other approved precious metals are held in custody for the benefit of the IRA account owner. It functions the same as a regular IRA, only instead of holding paper assets, it holds physical bullion coins or bars. Precious metals IRAs are usually self-directed IRAs, a type of IRA where the custodian allows more diverse investments to be held in the account.

Vienna Philharmonic (coin)

The Vienna Philharmonic, often shortened to Philharmonic, is a bullion coin of gold, silver, or platinum produced by the Austrian Mint. The coin is named for the Vienna Philharmonic orchestra, which inspired the design of both sides. It was introduced in 1989 as a one-troy ounce (ozt), gold coin with a face value of 2,000 Austrian schillings. It is generally one of the world's best selling bullion coins. In 2002, with the adoption of the euro currency, the nominal value of the one-ounce coin was changed to 100 euros. In 2008, the Mint introduced a one-ounce silver version of the coin with a nominal value of 1.50 euros. The silver coin is also one of the top selling bullion coins, ranked third in 2013. In 2016, the mint introduced a one ounce platinum coin with a face value of 100 euros.

PAMP SA is an independently operated precious metals refining and fabricating company and member of the MKS Group. It was established in 1977 in Ticino, Switzerland

APMEX is one of the largest e-commerce retailers in the United States, providing a two-way market for buying and selling Precious Metals in the United States. It has a selection of over 20,000 products that include Gold, Silver, Platinum, Palladium, numismatics and semi-numismatics. APMEX sells products for investing and collecting.

American Palladium Eagle Palladium bullion coin of the United States

The American Palladium Eagle is the official palladium bullion coin of the United States. Each coin has a face value of $25 and contains 99.95% fine palladium. It was authorized by the American Eagle Palladium Bullion Coin Act of 2010 which became Public Law 111-303 passed during the 111th United States Congress. The Palladium Eagle uses Adolph Weinman's obverse design on the Mercury dime, Liberty wearing a winged hat, while its reverse design is based on Weinman's 1907 American Institute of Architects (AIA) medal design.

The Canadian Palladium Maple Leaf is the official bullion palladium coin of Canada. It is issued by the Royal Canadian Mint in .9995 purity. The coins have legal tender status in Canada, but as is often the case with bullion coins, the face values of these coins is lower than the market price of the material they are made from. Unlike the gold, silver and platinum maple leaf series, the palladium maple leaf is subject to the GST/HST tax.

References

  1. "Investing in Bullion and Bullion Coins". Consumer Information - US FTC. U.S. Federal Trade Commission. May 2011. Retrieved 9 April 2015.
  2. "VAT Notice 701/21A: investment gold coins". Gov.UK HMRC pages. HMRC. 1 February 2012. Retrieved 9 April 2015.
  3. Bouvier's Law Dictionary (Revised 6th ed.). 1856. Retrieved 9 April 2015.
  4. "Buy Physical Gold Bullion, Gold Coins & Gold Bars | LPM". www.lpm.hk. Retrieved 2017-10-14.
  5. "American Eagle Bullion Coins for Investors". United States Mint. United States Mint . Retrieved 17 February 2018.
  6. "BULLION PRODUCTS". Royal Canadian Mint Website. Royal Canadian Mint . Retrieved 9 April 2015.