What is a bullion coin?

Posted by Oliver Eckl on

In contrast, the interest in investment coins (also called bullioncoins or bullion coins) is of a different nature - more precisely, the desire, with palladium this is possible because they are valued based on the weight of the precious metal they contain.

The Australian 1 ounce silver Kangaroo coin is a classic example of a bullion coin. Like the majority of our numismatic coins, it is issued as legal tender - its guarantee is weight and purity. However, it is mass-produced in unlimited numbers with a less complex finish and is sold without any special packaging or certificate. Other examples include the Krugerrand , which is celebrating its 50th anniversary in 2017 and, in the anniversary year, also as a silver Krugerrand for the first time comes onto the market.

These factors are the key to why they are so interesting for investors. This allows the coins to be sold at a low markup or "premium" - a small amount over the price of the metal to cover manufacturing costs as well as wages for those employed in design, production, quality control and so on.

The price of a single silver Kangaroo coin is therefore only a few dollars above the international spot market price - the target price for silver.