What is a bullion coin and how is it priced?
What makes a coin bullion
Bullion coins are minted to contain a set amount of precious metal and are often sold in standard weights, such as one ounce. They are valued primarily for that metal rather than for rarity or historic interest. Many modern government-issued bullion coins carry a face value that is far below their metal value.
Because the metal is what matters, bullion coins are often bought and sold in quantities. Buyers can compare coins by their metal weight and purity, which makes pricing more straightforward than with collector coins.
- Priced mainly on metal weight and purity
- Common in one-ounce gold and silver sizes
- Face value is often far below metal value
How the price is built
The total price usually equals the spot price of the metal times the metal content, plus a premium. The premium covers minting, distribution, and dealer margin, and it rises and falls with demand. Premiums can be small on popular coins and larger on rare or limited releases.
Always compare the total price with the live metal price before buying, and factor in shipping and any selling fees. Prices move during the day, so check a current quote.
Common mistakes
- Ignoring the premium when comparing bullion prices.
- Assuming a bullion coin will always sell for its exact metal weight.
