Bullion vs. Numismatic Coins: Which is the Better Investment?

numismatic coins, My Gold Advisor, Damion Lupo, bullionQ: Should I invest in numismatic coins, or is bullion the way to go?

A: To answer that, let’s compare the two:

The Difference Between Bullion & Numismatics Bullion is essentially raw gold or silver in a coin or bar form. These items are valued at the spot price, plus a small premium for production at the mint and, most likely, a dealer markup. Numismatics, on the other hand, are collectible coins. Since the collectible value has more to do with nostalgia than the value of the gold itself, it’s highly subjective and much harder to evaluate the market value.

A Closer Look at Numismatic Coins Numismatics, or collectable coins, typically carry a high premium above the spot or melt value of the coin. Unethical dealers often promote numismatic coins because of the arbitrary and subjective premium they can charge – typically 20% to 100% over the metal value. The price often has more to do with the story behind the coin rather than the market value.

A Closer Look at Bullion A key to bullion is that a one-ounce bar has almost an identical value as any other one-ounce coin or bar, even if they were minted at different places in different countries. This is because their value is tied almost entirely to the amount of gold in them. One ounce is one ounce, period. The foundation of any savvy investor’s portfolio is bullion, preferably a well-known bullion such as American Eagles or Canadian Maple Leafs. Other bullion options like Austrian Philharmonics, South African Krugerrands, Australian Kangaroos, and Swiss Pamp Bars are also superb. And unlike collectable coins, they don’t require you to become a coin expert before you purchase them and you’re paying for the true metal value.