These coins are usually stamped with a face price, which is often far lower than the cost of the coin as bullion and collector’s item. The price of a bullion gold coin is relatively higher than bullion gold bars, due to the associated numismatic value. So the components that make up the price of a bullion gold coin are: the current price of the gold used in minting the coin, the price added as a specially-minted coin, and the collector’s premium — depending on how rare it is and how trendy it is among collectors. Auctions for bullion gold coins can drive the price far above the mint costs, since collectors can be a competitive lot.
Bullion Coins are produced by several countries around the world. Examples of these are S. A. ‘s Krugerrand, Canada’s Maple Leaf, Australia’s Nugget, Britannia from the United Kingdom, and Yankee Gold Eagle by the States. As an example of how far the face value of a bullion coin is different from its real value, take the Yankee Gold Eagle. A one troy-ounce Yankee Gold Eagle is given a face worth of 50 United States dollars; while the bullion gold used alone costs just about 900 US dollars! After adding the minting premium, it comes out at approximately USD 950 — a stunning 900% increase of its face value!
An interesting fact: in 2007, the Royal Canadian Mint produced a 99.999% pure gold ( often referred to as 5 9s gold ) coin weighing a startling a hundred kilograms, with a face price of 1,000,000 Canadian bucks. It was originally done as a hoopla stunt, but some collectors wished to have their own. Now, the Royal Canadian mint makes these monster coins to order. It is fifty centimeters in diameter and a huge three centimeters in thickness.
Bullion coins are also available in silver, platinum, vanadium, and some other precious metals, depending on the mint that produces them. These coins are beautiful and valuable. What’s more, they do not lose value as currency does, so they make good nest eggs for those “just in case” situations.
.
You must log in to post a comment.