2016-09-10 Sat

Let us find out about the basic differences between 'bullion' and 'numismatic' coins.

"Numismatic coin" is a term generally given to modern commemorative non-circulating legal tender releases featuring design themes for collectors. Most of these numismatic issues bear amazing finishes. They are of higher quality than the circulating coins with better polish (i.e. proof) produced with immense clarity and definition of the raised, frosted elements (relief).

Proof coins were hand-struck trial coins that were issued to detect and make corrections to flaws. They are termed as Proof as they are the best examples of a particular type of coin. Producing these coins involves great artwork of the coin smith and they come with a mintage limit, a numbered certificate of authenticity, and decorative packaging. Numismatists like collecting these coins as they are rare and intrinsically valuable with a unique design that generates a personal interest.

Bullion coins are collected majorly for investment purposes as they are valued on the basis of the intrinsic value of the precious metal that it’s made of. 1oz Silver Kangaroo bullion coin is issued as Australian legal tender and offers a guarantee of weight and purity. They do not have a restriction in mintage limit and are issued with a basic finish. These coins are sold with a 'premium' to cover the cost of fabrication like the wages of those involved in the design, production, quality control and so on. These coins offer a cost-effective, trustworthy, and easily tradable method to buy precious metals.

The Perth Mint introduced the Australian Nugget gold coin a better bullion finish in 1987. Many new coins also come with 'reverse proof' finishes which are highly sought after by both collectors as well as investors. Collectors like having them in their kitty as design changes are made annually and sometimes they also have a mintage limit.

All precious metal coins they have a 'buy back' or 'melt' value which varies depending on the spot market price. These semi-numismatic releases have a very good demand which has created a price hike in the secondary market.