FAQ About Collecting Gold Bullion Coins

Posted on: 6 February 2015

One way to collect gold coins is to focus on collecting gold bullion. Bullion is different from collecting rare coins, but it still has the benefits. You can collect interesting coins and display them, and they all have monetary value. Here is some information for beginners to gold bullion:

What is Gold Bullion?

Gold bullion are coins made from gold, usually either 22kt or 24kt gold. Legally, bullion is only considered a coin if it was once used as money. You can still purchase gold bullion that wasn't used as currency, but it won't be called a "coin." The difference between collecting coins and bullion and is that bullion is used as a way to invest in gold. Coin collectors purchase rare coins knowing they will go up in value over time. Bullion collectors purchase bullion hoping that the price of the gold will rise.

Why Is Bullion Better Than Gold Bars?

Another popular way to invest in gold is to buy gold bars. Why choose gold bullion over bars? Gold bars are bigger and heavier, making them difficult to store and keep safe. Coins are small and can be displayed for all to see. Gold bars are also much more expensive up-front. With bullion coins, you can purchase a few at a time and grow your collection and investment over time without spending as much money at once.

What Are Popular Gold Bullion Coins in the U.S.?

There are many gold bullion coins in the U.S., but some are more popular than others. Probably the most popular gold coin owned by collectors is the Double Eagle. It was minted between 1849 and 1933. The newest bullion coin is the American Buffalo. It has the same design as the Buffalo nickel that many collectors admire. You can also find many gold bullion rounds that were never used as tender. They usually have pictures of famous historical people.

How Much Do Gold Bullion Coins Cost?

Gold bullion coins are different from traditional coins. The value of the coin depends greatly on the price of gold. The value of gold changes regularly based on supply and demand. Older gold bullion coins, such as the Double Eagle, have the added bonus of rarity worth. They are treated like both a gold investment and a rare coin. That means you can earn more money from a Double Eagle because it is rarer, but the American Buffalo is cheaper and easier to obtain although it really only has worth as gold.

For more information about buying gold and other valuable coins, contact a company like Distinctive Coins.