What is bullion coins

Bullion coins can consist of precious metals such as gold, silver, platinum, and palladium. Bullion coins can consist of two categories, including coins issued for circulation when the gold or silver was used as legal tender and coins issued by governments or institutions as a form of non-circulating legal tender NCLT. In both of these instances, coins have a set weight and fineness set with a denomination.

As long as goods and services have traded based on a monetary unit, metals — typically gold and silver — have been the bases of that exchange.

With the advent of non-precious-metal or base metal currency, there has been a desire by governments, institutions, and individuals to protect and hedge their wealth in an asset that is and has always been a stable means of exchange — precious metals. Today, just as it has always been, gold and silver have value and are a form of currency that is traded and accepted worldwide. On the coin obverse there are indicated the coin face value, coin issue year, as well as the indications of the metal and its fineness and coin weight in fineness.

Face value — 5 hryvnias Metal — gold Au ,9 Weight in fineness, g — 7. Face value — 20 hryvnias Metal — gold Au ,9 Weight in fineness, g — Regular version of site. About Bullion Coins.

Popular Courses. Commodities Metals. Commodities Oil Gold Metals. What Are Bullion Coins? Key Takeaways Bullion coins are physical coins made of precious metals. The most common types are made of gold and silver, although platinum and palladium are also sometimes used. While some investors purchase bullion coins as gifts or collectible items, others invest in them for their perceived value as a hedge against inflation.

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This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Examples of gold bullion coins include the South African Krugerrand, the U. Silver bullion Eagles, Maple Leafs, and Pandas are also minted. Start your free trial today and get unlimited access to America's largest dictionary, with:.

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