After I got a handle on the coin speak, it was time to move on! I would say we jumped into hyperdrive, but learning about this stuff is almost the exact opposite, hyperstop. Yeah, I know I just made that up, please just go with it 🙂
So the whole coin business can be pretty complicated. There is this word that gets thrown around all the time: bullion. I didn’t know what the heck it meant, but I kept reading it everywhere. So the best thing to do was define it for myself.
There is a crazy technical definition, but the one that makes the most sense is the simple one. Bullion is any precious metal item that is traded for its intrinsic value. An American Gold Eagle is not worth the value on the coin, it is worth the price of the gold it contains.
There are a few different types of gold bullion as well. Coins are just one type. The most common are coins and bars. Here’s a breakdown of the types:
- Coins– coins are typically government minted, dated and issued. Coins usually have a face value and some are used as legal tender.
- Bars– bars come in various sizes and are easily liquidated and traded. Each bar is imprinted with it’s purity and since there is no emotional value on them, a buyer is paying strictly for the amount of gold in the bar.
- Rounds– rounds are very similar to coins, but they are not necessarily government minted. Rounds have no legal tender or face value and are valued by their purity and weight.
- Medals– medals are created to honor people, events and sites. Many are pure gold, but some are gold-plated or silver-gilded.
- Tokens– tokens are coin-like items that are used instead of actual coins. Tokens are often issued by private companies or groups and are typically made from cheaper materials.
- Wafers– wafers are gold bars that are stamped and not cast. The resulting bar is thinner and flatter than a traditional gold bar, these are also known as biscuits.
Of course, at this point I’m feeling much like another favorite character of mine, Alice. Delving into the world of gold and silver collectibles can be a lot like falling down the rabbit hole. However, my little white rabbit isn’t scampering off, he sticks around just make life that much more interesting.
Have a great weekend and as Yoda says,
“May the Force be with you.”
–Katie
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