Gold Proof Coins Vs Bullion

The common perception is that rectangular bits of gold bars are the most cost effective and perhaps the only available form of gold bullion.

Gold proof coins vs bullion. The same thinking has it that round bits of gold coins are not really gold bullion. Proof coins often command a higher premium to purchase and are popular with coin collectors. While both bullion and proof coins can receive grades that in turn indicate respective quality levels grading for proof coins helps bolster the value of proof coins whereas with bullion the value is derived from market factors and commodities prices. The proof finish therefore is the pinnacle of coin minting and helps to display the mastery of the strike.

Uncirculated coins will have very minor scuffs and imperfections such as tiny scratches and edge knocks. Proof coins tend to be limited mintage and usually come with a box and certificate depending on coin and mint. Bullion coins have a basic finish that is neither incredibly matte nor incredibly shiny. For instance in 2009 american eagle proof coins were trading at three times the spot price of gold.

Bullion coins are often referred to as uncirculated which means exactly that the coins have never been in circulation. Unfortunately unscrupulous precious metals dealers may exploit this ignorance to steer customers in the wrong direction forcing them to spend more money for lower quantity. American bullion and its agents are not registered or licensed by any government agencies and are not financial. Learn the difference between bullion proof and numismatic coins.

You could say the finish is satin or just slightly frosted. Numismatic coins a common question from novice investors of gold and silver is what in the heck is the difference between a bullion and a numismatic coin. A certified coin with a proof finish goes through a special minting process and is struck multiple times giving it a richer level of design detail and an eye catching mirror like finish. Ngc and pcgs rely on what is known as the sheldon scale when grading precious metal pieces.

Proof coins vs bullion coins. Basically this is a misunderstanding of what gold bullion is. Today american eagle proofs are around 1 3 times the gold spot price but the potential for them to once again trade at three times the rate of spot or even higher is likely.