Bullion Coins

DEFINITION of 'Bullion Coins'

Coins made from precious metals that are generally used for investment purposes. Bullion coins are usually made from gold and silver, and may also be available in platinum and palladium. Many countries have their own official bullion coins, such as the American Eagle series of coins available from the Unites States Mint, and the Canadian Maple Leaf series offered by the Royal Canadian Mint. They are typically minted in weights that are fractions of one troy ounce to fit a variety of budgets.

BREAKING DOWN 'Bullion Coins'

Bullion coins appeal to investors who are looking for an investment that has stood the test of time as a store of value for thousands of years. The steady rise in gold prices starting in 2000 has spurred tremendous interest in bullion coins in recent years.

Bullion coins may command a premium in the market place as compared to the spot price of the underlying precious metal on global metal exchanges. This premium may be attributed to an underlying demand for bullion coins, as well as their relative liquidity, small size (which facilitates storage) and the costs involved in manufacturing and distributing them.

American Eagle gold bullion coins are among the most widely traded bullion coins in the world. These coins are minted from 22 karat gold (91.67% purity) and are available in four weights – 1/10, 1/4, 1/2 and 1 troy ounce. Other popular gold bullion coins are the Canadian Maple Leaf, South African Krugerrands and Chinese Gold Pandas.

RELATED TERMS
  1. Mint

    The primary producer of a country's coin currency. The mint has ...
  2. Trillion Dollar Coin

    A trillion dollar coin is a theoretical coin that could be legally ...
  3. Krugerrand Gold Coin

    A gold coin minted by the Republic of South Africa. Krugerrand ...
  4. Bullion

    Gold and silver that is officially recognized as being at least ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." ...
  6. Bullion Market

    A forum through which buyers and sellers trade pure gold and ...
Related Articles
  1. Investing

    5 Best Bets For Buying Gold

    Gold is a desirable alternative for those looking to diversify risk. Discover your options.
  2. Forex Education

    History Of Coinage In The U.S.

    From the barter system to commemorative coins, we look at the history of U.S. money.
  3. Options & Futures

    Getting Into The Gold Market

    Add some sparkle to your portfolio by getting in on this classic commodity.
  4. Savings

    Teaching Financial Literacy To Kids: What Is Money?

    Teach your kids what money is and how it works, from bartering, to cash and coin to the concept of credit.
  5. Forex Education

    The History Of Money: From Barter To Banknotes

    Money has been a part of human history for at least 3,000 years. Learn how it evolved.
  6. Options & Futures

    Does It Still Pay To Invest In Gold?

    This asset's appeal dates back thousands of years. Find out whether it can live up to the hype.
  7. Mutual Funds & ETFs

    (GLD) SPDR Gold Shares: Who Is Invested?

    Learn about SPDR Gold Shares, including why it may be a good way to diversify a portfolio, who owns it and how it has performed in recent years.
  8. Mutual Funds & ETFs

    Top 5 Precious Metals Mutual Funds

    Obtain information and analysis of some of the top-rated and most popular mutual funds that offer investors exposure to the precious metals industry.
  9. Forex Education

    The History Of Money: Currency Wars

    Find out how conflicts have changed the role money plays in our lives.
  10. Mutual Funds & ETFs

    4 Ways You Can Invest In Gold Without Holding It

    Owning gold can be a store of value and a hedge against unexpected inflation. Holding physical gold, however, can be cumbersome and costly. Fortunately, there are several ways to own gold without ...
RELATED FAQS
  1. Can I invest in gold or silver with my Roth IRA?

    Learn how you can purchase gold coins and bars with your Roth IRA, or how you can diversify part of your assets by purchasing ... Read Answer >>
  2. For investors, what are the alternatives to owning physical gold?

    Learn some of the primary alternate ways that someone can invest in the gold market besides simply purchasing physical gold ... Read Answer >>
  3. Has gold been a good investment over the long term?

    Examine the performance of gold as an investment, dating back to 1933, when President Roosevelt required all gold bullion, ... Read Answer >>
  4. What is continuously compounding interest?

    Read a quick explanation of continuously compounding interest rates, why compounding matters and how to calculate the continuous ... Read Answer >>
  5. What are some of the most popular mutual funds for investing in the metals and mining ...

    Explore some of the many mutual fund options available to investors that focus on holdings in the metals and mining sector, ... Read Answer >>
  6. What other precious metals are there beyond gold and silver?

    Discover the other, lesser-known precious metals such as platinum and palladium, which are more tied to the industrial economy ... Read Answer >>
Hot Definitions
  1. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  2. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  3. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  4. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  5. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  6. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
Trading Center