Difference Between Bullion And Coins
The bullion round and an American coin can look a lot of alike. Often they will even feature similar designs and sizes. However, there are some big differences between today’s bullion and today’s coins. These differences are often what causes a person to invest in one over the other, as well as dictates how to best care for the different investment opportunities. These differences are not always noticeable when looking at the rounds verses the coins, but sometimes they are made to be obvious and simply need a trained eye to understand and appreciate the differences between the coin and the round.
With gold coin prices at Monex on the increase, many people assume that any gold coin is a coin worth a lot of money. However, there are several different types of gold coins and not all of these coins are worth as much as other gold coins. In addition, it should be noted that the gold prices on Monex are relating to a single troy ounce of gold, not one single coin. This means that it can take several of these gold coins in order to achieve the single ounce that the prices indicate.
As stated, there are several different types of coins, there are true coins or currency, and then there are bullion rounds that look like coins. These bullion rounds are worth considerably more money than the coins because of the purity of the metal and the particular amount of the precious metal that is in the coin or round bullion. The currency coin is made with an alloy, or combination of more than o1 metal, for the strength that the alloy provides for the coin. This maintains its finish and appearance even after being handled by thousands of people and rubbed on millions of different surfaces.
The gold coin bullions, otherwise as known as bullion rounds, are often 22 karat gold. This gives the bullion enough purity to be accepted by the other countries around the world but still provides enough strength for the individual to handle the piece. The gold coin prices assume that the bullions have been melted down and purified into pure or 24 karat gold. This means that even if a person has 1 ounce troy gold, he or she may receive a smaller amount for the gold depending upon the karats and purity of that gold. The coins themselves will have a significantly smaller amount of gold available after refining than the gold bullion.