Bullion Bars Vs. Coins Vs. Rounds

Bullion Bars Vs. Coins Vs. Rounds

If you're interested in expanding your investment portfolio to protect your assets, then the most efficient method is to purchase physical gold or silver as a secure hedge. Physical forms of these precious metals that are available for purchase include bars, coins, and rounds. You can buy gold and silver in these various forms from Bullion Exchanges.

Bullion bars

Bullion bars refer to thin, rectangular ingots produced by minting companies from all around the world. Mining companies stamp their logo onto hand-poured bars and/or minted ingots along with the purity and weight of the item. This way, you’ll always know the metal’s most pertinent details immediately.

Under private management, these companies charge a considerably lower premium compared to spot prices and bullion coins. Because they carry the lowest premium, bullion bars are among the top ideal investments for entrepreneurs who want to buy gold and silver in large amounts. However, there are few downsides to investing in bullion bars. One of the biggest downsides is that large bar sizes are harder to trade. However, buying gold bars in larger sizes is more cost-effective than purchasing smaller sizes to equal a heavier weight. 

Bullion bars can vary from 1 gram to 1 kilogram. Even though mint companies try to manufacture ingots with similar dimensions, the exact sizes will vary based on the mint where they were produced. Therefore, if you intend to buy as much gold or silver for your dollar as possible, it's preferable to purchase it from the same mint. This way, bullion bars can be easily stored and transported.

Coins

Unlike bars, coins carry a legal tender status, meaning they are produced by government-operated mints and can be used to purchase items. Purchasing items with these precious metals coins is not common practice, however, since their actual value is much higher than their face value. In general, bullion gold and silver coins feature their face value, year, purity, weight and intricate designs. Gold and silver collectible coins tend to have a different design every year, and particular coins appeal more to collectors. These aspects all factor into the coin’s premium. Coins have an additional value as currency, and this is why they tend to sell above the spot price of the metal they incorporate.

Uncirculated and proof coins constitute an alternative for bullion gold or silver bars. Both types of finishes contain the same amount of precious metal content, and therefore, are still viable options for investors who wish to buy gold and silver. Often times, people invest in bullion coins for the sake of collecting coins. These items carry a higher premium, which means that they cost more than the currency plus the metal content of the coin.

Rounds

Often viewed as the cousins of bars, rounds are circular discs of gold or silver produced by minting companies from various parts of the world. Although investors often mistake them for coins primarily due to their shape, rounds don't carry the legal tender status. Therefore, they can be produced by private mints since they cannot be used in circulation.

Similar to bars, rounds include the mint's logo along with weight and purity of the precious metal they incorporate. In addition, they carry a low premium over the spot price and constitute a viable option for individuals who want to buy gold and silver with minimum investment. These rounds also feature wonderful designs like coins, only missing the legal tender status.

Bullion Exchanges can help you

Irrespective of the type of venture you're interested in, you can count on Bullion Exchanges to assist you throughout the entire process. Contact us today and find out more about how you can protect your assets.  We are located at 30 West 47th Street in New York City’s Diamond District and are open Monday through Friday from 9 A.M. to 5 P.M. Contact us by phone or online during our business hours if you have any questions about our products and services. Our friendly team can address your Precious Metals investing questions and help you with any bullion purchasing or selling requests.