Should I Buy Bullion Bars, Coins or Rounds?

What is Meant by Bullion?

Bullion is basically a precious metal that is presented as an investment opportunity in the shape of a bar, coin or round. What’s the difference between each? How about a quick tutorial.

A bullion bar is exactly what it sounds like. A precious metal is molded into a rectangular bar. 

A bullion coin is minted by the government with a date stamp and is a legal tender. However, because of the precious metal content, the actual value of the coin is often considerably higher than the coin’s assigned face value.

Bullion rounds are coins that are not minted by the government but by a private mint. Therefore, its worth is almost entirely derived from the melt value of that particular coin.  

Should I Buy Bullion Bars?

Investors tend to buy gold or silver bullion bars in order to preserve wealth and maximize a return on the investment.  The issue then becomes how much bullion should one consider as a proper investment. The better choice in this regard is to aim for smaller bars. 

Whereas the larger sized bars often offer the best value when buying, this is not necessarily the case as it comes to selling at a later date. Therefore, if the bullion bar is your bag, we recommend investing in the 1oz, 50g and 100g bars. It’s simply easier to unload or liquidate smaller bars as needed rather than deal with anything larger. 

Should I Buy Bullion Coins?

Bullion coins are also a solid choice for investing as they, like the smaller bars, allow for more flexibility when it comes to adjusting your portfolio or seeking a return on investment. As a result, bullion coins make for the more agreeable choice as it comes to protecting yourself against inflation and other economic risks. However, beware that bullion coins, especially gold, could demand additional premiums depending on market conditions. 

Should I Buy Bullion Rounds?

As mentioned, the primary difference between bullion coins and bullion rounds is who produces them. However, bullion rounds are not legal tender and are generally favored more by collectors than investors. This is not to say that a gold or silver round is not a great investment. It’s just a matter of preference and design when it comes to investing in either a bullion coin or bullion round. 

There’s really no wrong answer when it comes to investing in bullion. Some investors have very specific preferences while others like to mix it up for the sake of having a more diversified portfolio. 

If you’re looking to invest in bullion, just consider how much you want to invest and what your preference is as it regards selling down the road. Also, keep an eye out for premiums on items like gold coins as the price you pay over spot can vary, depending on the dealer or source from which you’re buying.

Back to "Bullion Academy"