Ingot is a physical precious metal that is pure or nearly pure after being refined. Precious metal coins and bars such as gold, silver, platinum and palladium are considered bullion. “Bullion Rounds” are coins made of precious metals that are not intended to serve as currency, such as gold or silver coins. Bullion coins are coins made of precious metals.
They are usually minted in weights that are fractions of a troy ounce, and are usually made of gold and silver. A bullion coin is a coin minted with refined precious metal (ingots) and that is preserved as a store of value or as an investment rather than being used in daily trading. A bullion coin is distinguished by an explicit statement of weight (or mass) and fineness of the coin; this is because the weight and composition of coins intended for legal tender are specified in the minting laws of the issuing nation and, therefore, there is no need for an explicit statement about the coins themselves. A common question from novice gold and silver investors is what is the difference between a bullion and a numismatic coin? Unfortunately, unscrupulous precious metal traders can exploit this “ignorance” to steer customers in the wrong direction, forcing them to spend more money for a smaller amount. We'll go over this fact in a moment).
First, let's address the fundamental difference between bullion coins and numismatic coins. Most of the time, all three purposes take into account the decision to invest in bullion coins. With few exceptions, bullion coins are manufactured year after year and are mainly purchased as an investment. Although 90% of junk silver quarters are no longer produced, their value is strictly based on the silver content of the coin and not on its state. These coins are valued mainly because of their rarity and not so much because of their actual metal content. In fact, numismatic coins are generally worth more than their metal content.
Incredibly rare and bought mainly by collectors, they are not an investment in the typical sense. Let's say you need to drive from Florida to California, at least a 2000-mile walk, and you can choose between a Ford Model T or a new Cadillac. While the Model-T is an impressive and beautiful car, it also comes from a bygone era. In fact, there are only two forward gears and it's not going that fast.
While it would make a great show car at a parade, you're not prepared for your arduous journey. Another crucial point (which we have mentioned above) is that, if you are thinking of buying gold or silver as an investment, DO NOT let anyone convince you to buy numismatic coins because “they cannot be confiscated”. In fact, that's a myth perpetuated by many unscrupulous traffickers. Bullion is money itself, a tangible asset with eternal value. Numismatic coins are also known as rare or collectible coins. If you're an investor, the answer is bullion; numismatic coins are for speculators and hobbyists, not for serious investors. In conclusion, when it comes to investing in precious metals such as gold or silver, it's important to understand the difference between bullion coins and numismatic coins.
Bullion coins are minted with refined precious metal (ingots) and that is preserved as a store of value or as an investment rather than being used in daily trading. Numismatic coins are generally worth more than their metal content due to their rarity and they are bought mainly by collectors.