Bullions or investment coins that increase in value
First of all, we must know that when we talk about Bullions or ingots made from precious metals we are raising the level of the collector. Not everyone can afford to have a bullion or investment coin of this type.
Even so, knowing everything or almost everything about Bullions helps us to participate in conversations about valuable coins for investment.
A Billion is a big piece. It is a type of coin with a lot of variety, which depends on the manufacturer and the country or organization that is minting it. Therefore, in this article, we are going to share with you everything we know about the Bullion, from its value, most valuable pieces, dimensions, in short. Everything.
What is a Bullion or investment coin?
Bullions are pieces made of precious metals, such as gold, silver, bronze, among others. They are also known as bullion.
They have a particular utility, since they serve as investment collateral. They have a high numismatic value, in addition to other aspects related to the economy and sustainability of a country or organization.
Bullion manufactured from precious metals and produced especially for investment purposes comes in three different forms: ingots, coins and rounds.
Worldwide, the most popular form for private investors is bullion coins. This type of coin differs from normal currency because it is not intended for circulation as payment for goods in stores.
Something interesting to consider is that the first Bullions were actually coins in PROOF quality, intended for collectors. Then, when they gradually became a safe haven of value, the modern concept of Billion Coin emerged.
What makes some pieces collectible?
The criteria used to classify a coin as a collector’s item is the same as for other similar pieces. Elements such as the artist in charge of the design and manufacture, the motif and the number of pieces put into circulation are valued.
All this gives numismatic value.
Another important element is the scarcity of coins of this type. The fewer pieces in circulation or available, the higher their value in the collectors’ market.
That is why pieces such as the British Sovereign, the Swiss 20 franc and the 20 German mark have become so valuable to coin collectors.
Bullions: pieces for investment safekeeping
As I mentioned before, the main characteristic of the Bullion is that it is designed and used to safeguard value. That is, to make an investment that is maintained or multiplied over time.
Going into the subject, due to the years of minting dating back to World War I and before, many European coins have a slightly higher value than modern bullion. However, U.S. and European collector coins tend to have values that rise and fall over time.
An important milestone in the transformation of collectible coins into Bullions was marked by the year 1930. The then President of the United States, Franklin D. Roosevelt closed the banks due to the Great Depression and confiscated all gold bullion by executive order. The possession of gold was even banned.
Historic collector coins became the only piece of gold that could justifiably be owned. Many investors then diversified their portfolio to include historic collector coins, hedging against any similar executive order in the future.
Even when FDR ordered bullion turned over to the government, rare collector coins were exempt from seizure and some citizens did not turn over their gold as ordered.
In 1962, the U.S. Treasury officially defined all coins minted before 1933 as collectibles, further protecting them from future government appropriation. Interestingly, the most expensive coin in history is precisely from this year. We are referring to the 1933 Double Eagle $20.
Although Franklin D. Roosevelt contributed, it was actually Richard Nixon in 1971 who ended up disconnecting gold from circulating money by abandoning the Gold Standard. Since then, the only purpose of silver and gold coins is to be collected or to serve as Bullion coins.
What are the Bullions or investment coins with the highest value or most sought after by collectors?
This classification may be somewhat subjective, since for some the value of some of the investment coins mentioned below are not so relevant, as they may think that another one should take their place.
Even so, this compilation takes the most interesting ones and the ones that many collectors are willing to pay for.
Canadian Gold Maple Leaf Coin
Among the most interesting details we can comment on the Maple Leaf coin, is that each piece contains one ounce of pure gold. The Royal Canadian Mint distinguished its coin by increasing the purity to 99.9% pure gold.
The Royal Canadian Mint began producing .9999 fine gold Maple Leafs beginning in November 1982. This established the Canadian Maple Leaf gold coin as the purest gold coin in the world. The purity of the Maple Leaf was further increased when the first bullion coin containing 1 ounce of .99999 fine gold was issued.
The Maple Leaf took 25% of the gold bullion coin market in just 5 years, starting in 1979. To date, more than 39 million gold Maple Leafs have been minted.
The American Eagle Gold Coin
What can we say about the United States Mint’s most popular gold coin? The American Gold Eagle coin can be classified as an alloy gold coin because it contains 91.7% gold with 5.33% copper and 3% silver as the remaining alloy.
The American Gold Eagle can be classified with its predecessor. Incidentally, the Krugerrand, which has a similar gold content of 91.7%.
The American Gold Eagle has a higher step to the Canadian Maple Leaf gold coin, as the alloy with silver and copper gives it its characteristic weight. This alloy is in addition to the ounce of gold used in its manufacture.
The weight, content and purity of the American Gold Eagle coin are guaranteed by the U.S. government.
The Gold Eagle was introduced in 1986. Thanks to the Gold Bullion Program, it introduced a method for Americans to conveniently and inexpensively purchase gold.
As for its design, it was the work of noted sculptor Augustus Saint-Gaudens and his initials, AG can be seen on the obverse with a magnifying glass.
The American Gold Eagle’s aesthetic and artistic design has made the coin one of the most popular and iconic coins in the world.
The American Gold Eagle has an altered edge that makes it easier to stack the coin and reduces wear when handling. The edge is trimmed. The predominant feature of the Gold Eagle is the beautiful depiction of the full-length Lady Liberty facing forward. Although the coin bears the Eagle name, it is the obverse with the beautiful image of Lady Liberty that is most striking.
Gold Buffalo, American investment coin
The Gold Buffalo is one of the most recent among all the coins we have mentioned so far. But its value goes beyond the numismatic. Among collectors of American bullions and those of other nations, this piece represents a very important value that allows it to be highly valued.
The Gold Buffalo is the first 0.9999 ounce gold coin produced by the United States Mint. Today, the Gold Buffalo is the purest gold coin minted in the United States.
The coin inherits its name from the American buffaloes that appear on the reverse of the coin. The coin’s striking similarities to the 1913 buffalo nickel, on which the design is based, led to the name “Gold Buffalo,” which became a popular name for this U.S. bullion coin.
The Gold Buffalo was officially approved for mintage under Section 201 of the Presidential $1 Coin Act in December 2005. However, the release into circulation was in 2006, long after the Gold Eagle, the coin we mentioned earlier.
The design has remained unchanged since its creation. It is based on the original James Earle Fraser 5-cent design of 1913.
As we hold the piece in our hands we can see the representative silhouette of a Native American occupies a prominent place on the obverse of the coin. The figure on the face has a noble appearance with its elegant features facing to the right. It is believed that Fraser studied life models of three Indian chiefs as inspiration for creating this beautiful and proud image.
The obverse of the coin is a striking design that reveals the prominence of America’s cultural background and history.
The reverse is marked by the distinctive detail of a standing American bison. This rural image called “Buffalo” fills the face of the coin.
The South African Krugerrand currency
Krugerrand is the world’s first and most widely traded investment currency. It owes its popularity to the era of the 1970s and 1980s, when South Africa produced and owned more than 75% of the world’s gold reserves.
It was first minted in 1967 and was intended to serve as a means of exporting gold from the richest deposits ever discovered in human history.
According to the Minerals Council of South Africa, over 60 million Krugerrands of all sizes have been minted to date.
Like those mentioned above, one ounce of gold was used to manufacture the Krugerrand, which is the first Bullion in history. In fact, it has been so important that it has served as a model for other countries and organizations to create their own gold pieces.
Gold coin of the Austrian Philharmonic Orchestra
The Austrian Philharmonic has a couple of important milestones in its history, such as being the best-selling coin in all of Europe and the second in the world for the year 1990. This record was repeated in 1995, 1996 and 2000.
From 1989 to 2012, more than 14 million of the coin have been sold, equivalent to a weight of almost 329 tons of gold. In 2004, the Vienna Philharmonic accounted for 35-40% of Bullion sales in Europe. It is also sold in places like Japan and North America.
Watch out for this curiosity. The one-ounce Vienna Philharmonic gold coin is the only one that has not changed its design since it was first minted in 1989.
As for its design, the delicate lines that are printed on this fantastic investment coin shape the bodies of the most beloved instruments in the Golden Hall of the Musikverein. At the top, the words “Republik Osterreich” arch over a large pipe organ centered in the coin’s center.
For those on a budget, the Austrian Mint produces four smaller complements of the 1-ounce bullion coin. These smaller representations of this famous 1-ounce gold coin are also popular for collecting as a set.
What is the price of a Bullion?
The price of a Bullion will depend on the type of coin you are interested in. For example, the Gold Buffalo Coin is priced from 1920 dollars and up. However, this price is variable and depends on the price of gold on the international market.
In fact, each of the pieces mentioned in this article has a variable price that depends on the volume of pieces available on the market and the value of gold at that moment.
Conclusions about bullions
These coins represent in themselves a piece of the history of each organization or country, they were made to commemorate an important time in their evolution as a nation.
Having them makes you part of that history.
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