One of the major questions that those new to the industry often ask is “What is the difference between a rare coin and bullion? Aren’t they both precious metals?” Well, yes – but the difference is a distinct one when it comes to how you choose to allocate your collection when you’re attempting to achieve both profitability and security.
Bullion is any precious metal taken at base value. This is what people are most often talking about when they discuss the daily price or they talk about how a particular precious metal is doing. These can range from American Gold Eagles to Canadian Silver Maple Leafs to kilo bars of a particular precious metal, stamped by the producing company and marked for fineness (usually .999+).
Bullion is excellent for those looking to get into investing in precious metals because it can be bought for as close to the metal price as possible, but it does subject you to the volatility of the market, for better or for worse.
Another major factor is liquidity. With bullion, you’re typically guaranteed to be able to make an immediate sale whenever you need to. With rare coins, liquidity is often tied to whether or not you’re able to find a suitable buyer that will purchase the coin at the right price. This is a reason why it is so important to develop a healthy, consistent relationship with your precious metals dealer. Many times, the dealer who sold you the coin will be willing to act as an intermediary and help you find a buyer at the price you want to sell for.
The best option is to diversify and hold both: gold, silver, and platinum bullion allows you to take advantage of market fluctuations with ease due to liquidity, while rare coins allow you to hedge your investment against those same market influences and potentially significantly profit in the process.
If you have any questions, we would love to speak with you and address your concerns and questions about bullion and rare coins. Give us a call at 1(877)795-9585.