Numismatists talk about Modern Bullion all the time - but how much do you actually know about this term?
We've written about this subject before, and today we'd like to share the history and definition of modern bullion with you here.
If you want to see the Gainesville Coins collection of modern bullion offerings, please visit our website!
In 1933, the Emergency Banking Relief Act allowed President Roosevelt to implement the confiscation of all privately owned gold in the United States in exchange for paper money. This resulted in deflation of the dollar and a spike in gold value, as the government proceeded to aid troubled bullion banks and replenish the gold reserves at Fort Knox. From then onward, Americans were only permitted ownership of numismatic coins that were valued by their currency denomination, condition, mint marks, dates, and rarity, rather than by their gold composition. It was not until December 31, 1974 that the Gold Statement of Policy lifted the ban and Congress reinstated Americans’ right to buy and sell bullion.
The term bullion refers to precious metals in bulk, which are traded on the commodity markets. A bullion coin is not used for everyday commercial purposes, but instead kept for investment. Most times, it is minted by a nation’s government. The distinction between bullion coins and normal currency is that a bullion coin is valued by its physical make-up – the mass, composition, and purity of the precious metals it contains – rather than its monetary denomination or face-value. As a result, bullion coins are valued significantly higher than normal currency.
When minting a coin, governments add numismatic value to a coin’s bullion value, while also endorsing its purity. The purity of bullions vary from issue to issue; however 99.9% purity is customary. 100% bullion coins do not exist, as absolute purity of metals in this form is not possible.
While gold bullion and silver bullion are the most common metals, palladium and platinum bullion bars and coins are available for interested investors. The rarest of all precious metals is platinum, and of the four, gold ranks second highest in rarity, followed by palladium, and finally silver.
At Gainesville Coins you can purchase all types of bullion – platinum, palladium, gold and silver, from the American Platinum Eagle and Palladium Canadian Maple Leaf, to the Perth Australia Gold Bar and even the Beijing 2008 Olympic Silver Coin Program.