A bullion coin (also known as a specie) is a

coin A coin is a small object, usually round and flat, used primarily as a medium of exchange or legal tender. They are standardized in weight, and produced in large quantities at a mint in order to facilitate trade. They are most often issued by ...

struck from highly refined

precious metal Precious metals are rare, naturally occurring metallic chemical elements of high Value (economics), economic value. Precious metals, particularly the noble metals, are more corrosion resistant and less reactivity (chemistry), chemically reac ...

(

bullion Bullion is non-ferrous metal that has been refined to a high standard of elemental purity. The term is ordinarily applied to bulk metal used in the production of coins and especially to precious metals such as gold and silver. It comes from ...

) and kept as a

store of value A store of value is any commodity or asset that would normally retain purchasing power into the future and is the function of the asset that can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved. The most ...

or an investment rather than used in day-to-day commerce, or collectable, with

numismatic Numismatics is the study or collection of currency, including coins, tokens, paper money, medals, and related objects. Specialists, known as numismatists, are often characterized as students or collectors of coins, but the discipline also inclu ...

value beyond that of its metal content. A bullion coin is distinguished by its weight (or mass) and

fineness The fineness of a precious metal object (coin, bar, jewelry, etc.) represents the weight of ''fine metal'' therein, in proportion to the total weight which includes alloying base metals and any impurities. Alloy metals are added to increase hard ...

on the coin. Unlike rounds, bullion coins are minted by government mints and have a

legal tender Legal tender is a form of money that Standard of deferred payment, courts of law are required to recognize as satisfactory payment in court for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything ...

face value. Bullion coins can have fineness ranging from 91.9% (22 karat) to 99.99% purity (24 karat). In the United Kingdom coins deemed to be investment coins are exempt from

value-added tax A value-added tax (VAT or goods and services tax (GST), general consumption tax (GCT)) is a consumption tax that is levied on the value added at each stage of a product's production and distribution. VAT is similar to, and is often compared wi ...

(VAT) on transactions. A coin is considered to be an investment coin if it was minted after 1800, and at least 900 thousandths fine, and has been

in its country of origin, and not normally sold at more than 180% of the value of its precious metal content; or if it is on a long list of coins deemed to be investment coins. This Web page links to the current list of investment coins, which is updated as required. Under United States law, "coins" not stamped by authority of the government are not coins and must be advertised as "rounds" instead. Bullion coins may sell for a premium over the market price of the metal on the commodities exchanges. Reasons include their comparative small size and the costs associated with manufacture, storage and distribution. The amount of the premium varies depending on the coin's type and weight and the

. The premium also is affected by prevailing demand. Depending on a number of factors, numismatic value may also have a direct influence on the price of a bullion coin. The American Eagle and Canadian Maple Leaf series are the only coins available in

gold Gold is a chemical element; it has chemical symbol Au (from Latin ) and atomic number 79. In its pure form, it is a brightness, bright, slightly orange-yellow, dense, soft, malleable, and ductile metal. Chemically, gold is a transition metal ...

silver Silver is a chemical element; it has Symbol (chemistry), symbol Ag () and atomic number 47. A soft, whitish-gray, lustrous transition metal, it exhibits the highest electrical conductivity, thermal conductivity, and reflectivity of any metal. ...

platinum Platinum is a chemical element; it has Symbol (chemistry), symbol Pt and atomic number 78. It is a density, dense, malleable, ductility, ductile, highly unreactive, precious metal, precious, silverish-white transition metal. Its name origina ...

, and

palladium Palladium is a chemical element; it has symbol Pd and atomic number 46. It is a rare and lustrous silvery-white metal discovered in 1802 by the English chemist William Hyde Wollaston. He named it after the asteroid Pallas (formally 2 Pallas), ...

Examples

Notable examples of bullion coins include: * Sovereigns * Britannias * American Buffalo *

Eagles Eagle is the common name for the golden eagle, bald eagle, and other birds of prey in the family of the Accipitridae. Eagles belong to several groups of Genus, genera, some of which are closely related. True eagles comprise the genus ''Aquila ( ...

* Kangaroos * Krugerrands * Libertades * Maple Leafs * Noah's Arks * Pandas * Philharmonics * Orzel Bielik

References

External links

{{DEFAULTSORT:Bullion Coin

Examples

See also

References

External links