A bullion coin, also known as a specie, is a coin made from highly refined precious metal and kept as a store of value or investment, rather than for everyday use. Bullion coins are characterized by their weight and purity. Unlike rounds, which are produced by private mints, bullion coins are minted by government mints and have a legal tender face value. Their purity ranges from 91.9% (22 karat) to 99.99% (24 karat).
In the United Kingdom, investment coins are specifically defined for VAT exemption purposes as coins minted after 1800, with a purity of at least 90%, and that are, or were, legal tender in their country of origin. In the United States, coins that do not meet these criteria are not considered coins but are referred to as “rounds.”
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Bullion coins may be sold at a premium over the market price of the metal. This premium covers manufacturing, storage, and distribution costs and varies depending on the coin’s type, weight, metal, and current demand. The numismatic value of a coin can also affect its price.
The American Eagle and Canadian Maple Leaf series are available in gold, silver, platinum, and palladium.
Examples
Notable examples of bullion coins include:
- United Kingdom Britannias
- United States American Buffalo
- United States Eagles
- Australia Kangaroos
- South Africa Krugerrands
- Mexico Libertades
- Canada Maple Leafs
- Armenia Noah’s Arks
- Austria Philharmonics
- Poland Orzel Bielik
Conclusion
Bullion coins are valuable not only for their precious metal content but also for their legal tender status and historical significance. They serve as both investment tools and collectors’ items, with their value influenced by various factors including metal purity, demand, and numismatic interest.