Understanding Bullion Coins

Bullion coins are coins which have intrinsic value, meaning the precious metal contained in the coin represents real value (this is in contrast to collectible coins, which may have some real value but are prized more for their rarity).
The United States’ monetary system uses a fiat currency that relies on the issuance of debt to remain stable (and pay off its own ever-expanding debts). What does this mean for you, the citizen? It means that any paper currency or cash you have in the bank is depreciating in value by the day.
Bullion coins can either be issued by either a government-run or private mint. A bullion coin should denote three things:
  • Purity of Metal
  • Weight
  • Minting Authority
Bullion coins have a tendency to increase in value during times of economic weakness or “bear markets.” Therefore, the natural tendency of investors is to buy precious metals such as gold and silver during times of economic uncertainty. To put it simply, buying precious metals is a great way to diversify a stock portfolio or retirement accounts such as a 401K or IRA.
If you are considering an investment in gold or silver bullion coins, we invite you to come visit P&G Jewelry & Coin in Wooster, Ohio. Paul, our staff expert on precious metals (and a licensed buyer/seller), would be happy to discuss ways you can use bullion coins to diversify your investments.
A bullion coin.