Alternate Refined Bullion Forms
Bullion Coins
World Bullion Coins
Bullion coins are a popular form of bullion investment. Those that come from government mints with a legal tender status such as the Perth Mint Gold Bullion Kangaroo or Silver Bullion Kookaburra come with metal content government guaranteed. This provides added security and helps with liquidity as the coins are recognised internationally. Other coins in this category include the Canadian Maple, US Eagle, Australian Philharmonics and Chinese Pandas. In our Dealer Listings we have grouped these under a Bullion Brand category called "Common World Mint Bullion Coins" so you can easily search for dealers offering these products.
Most bullion coins are produced in the 1 oz size but a variety of other sizes are available. 1 oz bullion coins can be purchased individually or in tubes of 20 to 25. Silver bullion coins are commonly available in monster boxes of 500 or 600 units.
Bullion coins tend to have a higher premium over the equivalent weight minted and cast bars because they are government backed legal tender. They are also popular due to their international recognition and may command stronger sales prices (also known as premiums) as demand increases. In such situations they may outperform alternate forms of the same metal.
Some refiners also produce 1 oz rounds similar to coins. They're normally not minted to the same level of finish and don't have legal tender status but they may offer the same level of metal purity and have a lower premium or margin over the spot price.
Bullion coins should not be confused with collectable coins also known as numismatic coins. Such limited edition or rare historical products stretch beyond precious metals investment into the domain of collectable investments. Returns can be very attractive but this is a highly specialised and speculative category that requires specific investment skills.
Coins and minted collectible products carry significantly higher purchase premiums beyond the base metal content so investors are banking on future rarity, collectable appeal and tradability for a healthy return. That said, some bullion coins are released in limited annual mintages and may have the potential to attract some collectable premium over and above the base metal product.
Also, if you're investing through a self managed super fund, bullion coins may be deemed a collectable if their value is greater than the face value and they trade at a price greater than the base metal content of the coin. If categorised as a collectable asset of a SMSF they will be required to be stored independently of your own (or related) premises and you should consult the superannuation regulations or seek appropriate advice.
