Can Coins and Bars Both be Bullion?

gold bricks, bullion vs coin, coin bullionQ: Is bullion just bars, or can coins be considered bullion, too?

A: Bullion is essentially raw gold or silver, whether in a coin or bar form. This is in contrast to numismatics, which are only collectible coins.

Value
The value of bullion is derived almost completely from the actual gold or silver content, i.e. the metal’s value. Common bullion items come in both coins and bars – from American Eagles to Swiss Bars to Johnson Matt bars. These items are valued at the spot price, plus a small premium for production at the mint and, most likely, a dealer markup.

A key to bullion is that a one-ounce coin or 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.

A Firm Foundation
The foundation of any savvy investor’s portfolio is bullion, whether in bar or coin form. Trustworthy and well-known bullion coins to add to your collection are American Eagles, Canadian Maple Leafs, or South African Krugerrands.  If you prefer bars, Swiss Pamp bars are also superb. And unlike collectable or numismatic coins, they don’t require you to become a coin expert before you purchase them.