Difference Between Gold Coins And Bullion

For the past six years precious metals have been one of the top performing asset classes and as such investors who wish to add these precious metals to their portfolio are often overwhelmed by the multiple investment instruments that are available at their disposal.

Difference between gold coins and bullion.

The same thinking has it that round bits of gold coins are not really gold bullion. Gold coins are more aesthetically pleasing containing amazing designs such as the bald eagles on a gold american eagle or the american bison on the american buffalo gold coin. Basically this is a misunderstanding of what gold bullion is. Because national governments issue bullion coins struck at official mints there is a level of comfort and security about the origin upon purchase.

The common perception is that rectangular bits of gold bars are the most cost effective and perhaps the only available form of gold bullion. Bullion coins and rounds are an excellent way to invest in gold because they can be liquidated easily are highly divisible and have an intrinsic value that cannot be diminished. Well they are gold and silver coins purchased for one of three reasons. Some of the most popular gold bullion coins in the world are the american eagle south african krugerrand canadian maple leaf and austrian philharmonic.

Much of the time all three purposes factor into the decision to invest in bullion coins. First let s address the fundamental difference between bullion and numismatic coins. Let s begin with bullion coins. What is the difference between gold bullion and gold coins.

Understanding the difference between gold coins and rounds can help you make a more informed decision when investing in precious metals.