Categorized | Coins and Bullions

Bullion Coins: Mass of Precious Metals

Bullion refers to any of the recognized precious metals. The common components of bullions are either gold or silver. What determines the value of bullion coins is not the face value but the worth of the metal itself.

Factors Affecting the Value of Bullions

The major two factors that can affect the value of bullions are improved innovations in the refining and mining process. Another factor that may affect the value of silver and gold bullion coins is high demand as well as market value.

How is Bullion Traded?

The trading of bullion coins takes place in the commodity market. There are two forms of trading bullions: bulk ingots or coins. The government of a nation is responsible for the minting of the coins. The ten known countries that mint silver and gold bullion coins are the United States, Canada, Australia, united Kingdom, China, Poland, Mexico, Switzerland, Poland, and South Africa.

The face values assigned to silver and gold bullion coins on minting are usually much less than the metals’ commodity values. For instance, only a few of the gold coins minted by the federal governments usually do not contain up to 31 grams of gold.

List of Some Gold and Silver Bullions Issued by the Government:

• Australian Gold Nugget
• Canadian Maple Leaf
• Austrian Philharmoniker
• Chinese Gold Panda
• Polish Orzel bielik
• Mexican Centenario, Onza, and Libertad
• Swiss Vrenali
• South African Krugerrand
• British Britannia and Sovereign
• American Eagle, American Buffalo, and Double Eagle

World’s Largest Bullion Coins

One of the world’s largest known bullion coins is the 10,000-dollar Australian Gold Nugget. The bullion coin belongs to Australia. The coin contains 1kg of 99.9% pure gold. While the 100,000-euro Vienna Philharmonic is larger than the Australian Gold Nugget, it is not practical to handle. This also applies to the 1-million-dollar Canadian Maple Leaf.

Finally, the three factors affecting the value of bullion coins are the weight, purity, and the metal itself.

Leave a Reply